Loading...
HomeMy WebLinkAbout2013 BudgetVillage of Buffalo Grove Adopted Budget January 1, 2013 to December 31, 2013 Jeffrey Braiman, Village President Dane Bragg, Village Manager Jan Sirabian, Village Clerk Jeffrey Berman, Trustee Steve Trilling, Trustee Beverly Sussman, Trustee Mike Terson, Trustee Andrew Stein, Trustee Lester Ottenheimer, Trustee Table of Contents Section 1 Transmittal Letter Dane C. Bragg, Village Manager ................................................................................................................. 3 Section 2: Organization and Services Village of Buffalo Grove Map.................................................................................................................... 15 List of Principal Officials ............................................................................................................................ 16 Vision and Mission Statement .................................................................................................................. 18 Strategic Priorities .................................................................................................................................... 19 Organization Chart ................................................................................................................................... 20 Village Commissions, Committees & Boards ............................................................................................ 21 Village Overview ....................................................................................................................................... 22 Section 3: Budget Process and Structure Budget Process ......................................................................................................................................... 33 Budget Timeline ........................................................................................................................................ 34 Budget Sections ........................................................................................................................................ 35 Basis of Budgeting .................................................................................................................................... 36 Annual Budget vs. Financial Statement .................................................................................................... 36 Fund Structure .......................................................................................................................................... 36 Financial Policies and Goals ...................................................................................................................... 37 Account Numbers ..................................................................................................................................... 38 Current Village Funds ............................................................................................................................... 40 Section 4: Executive Overview Budget in Brief .......................................................................................................................................... 43 Strategic Planning ..................................................................................................................................... 53 Revenue Trends and Projections .............................................................................................................. 56 Expenditures Trends and Projections ....................................................................................................... 66 Debt Position ............................................................................................................................................ 69 Fund Balance Projections by Fund............................................................................................................ 72 Section 5: General Fund Summary and Detail General Fund Revenue ............................................................................................................................. 75 Office of the Village Manager ................................................................................................................... 79 Legislative Legal Services Information Technology/Emergency Management Agency ..................................................................... 89 Finance and General services ................................................................................................................... 96 Human Resources ................................................................................................................................... 102 Fire Services ............................................................................................................................................ 108 Police Services ........................................................................................................................................ 115 Building and Zoning ................................................................................................................................ 122 Public Works Management & Administration ........................................................................................ 128 Engineering Services Building Services/Street Lighting Street Operations and Maintenance Forestry/Parkway/Landscape Maintenance Central Garage Drainage System Non-Operating Transfer ......................................................................................................................... 153 Section 6: Capital Improvement Plan Capital Improvement Summary.............................................................................................................. 157 Capital Projects Budgeted by Fund ......................................................................................................... 158 Summary Sheet ...................................................................................................................................... 159 Detailed Project Sheets .......................................................................................................................... 161 Reserve for Capital Replacement - Vehicles ........................................................................................... 182 Criteria List and Scoring Matrix .............................................................................................................. 184 Motor Fuel Tax Fund .............................................................................................................................. 185 Capital Projects – Facilities Fund ............................................................................................................ 187 Capital Projects – Streets Fund ............................................................................................................... 189 Section 7: Enterprise Funds Golf Course Funds................................................................................................................................... 193 Water & Sewer Operating ...................................................................................................................... 204 Refuse Fund ............................................................................................................................................ 210 Section 8: Fiduciary Funds Police Pension ......................................................................................................................................... 215 Fire Pension ............................................................................................................................................ 217 Section 9: Other Funds Illinois Municipal Retirement Fund ........................................................................................................ 221 Parking Lot Fund ..................................................................................................................................... 223 Facility Development Debt Service ......................................................................................................... 225 Appendix A: Comprehensive Fee & Tax Schedule Administrative Fees ................................................................................................................................ 229 Building & Development/Health Fees .................................................................................................... 232 Planning & Zoning Fees .......................................................................................................................... 237 Police Department Fees ......................................................................................................................... 238 Fire Department Fees ............................................................................................................................. 239 Engineering Fees ..................................................................................................................................... 240 Water Connection Fees .......................................................................................................................... 241 Business Taxes, Licenses and Regulations .............................................................................................. 243 Taxes Schedule ....................................................................................................................................... 244 Appendix B: Financial Policies & Projections Fund Balance Policy ................................................................................................................................ 249 Purchasing Policy .................................................................................................................................... 250 Investment Policy ................................................................................................................................... 253 Debt Policy .............................................................................................................................................. 259 Capitalization Policy ................................................................................................................................ 262 Five Year Operating Forecast .................................................................................................................. 265 Twenty-Year Water & Sewer Utility Forecast ......................................................................................... 278 Appendix C: Human Resources Health Plan Benefits ............................................................................................................................... 289 Employee Staffing Levels ........................................................................................................................ 291 Appendix D: Document Definitions Glossary .................................................................................................................................................. 299 Acronyms ................................................................................................................................................ 304 Se   Trans Dane C. B                             ectio smittal  Bragg, Villag on  Letter  ge Manager  1  Village of Buffalo Grove 1 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 2 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 VILLAGE OF BUFFALO GROVE MANAGEMENT’S LETTER TO THE CORPORATE AUTHORITIES OF THE VILLAGE OF BUFFALO GROVE, ILLINOIS November 12, 2012 Honorable President Jeffrey S. Braiman 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, 2013. Given the ongoing review and assessment of efficiency initiatives, as well as the stated goal of the Village Board to maintain steady property tax rates, the Village will enter 2013 with a balanced operating budget while maintaining essential services to its residents. I would like to commend our Village management team and staff on their efforts to create the budget document before you, particularly in light of ongoing downward economic pressure and rising cost structures to provide services. The accomplishment of our third consecutive balanced budget, with the first planned capital reserve transfer to occur since 2008, is no small feat. While the Village’s revenue profile remains stagnant in the current economy, a continued strong financial position permits the Village to maintain predictable levels of service. The proposed budget reinforces the organizational philosophy of aggressively managing long-term liabilities and proactively planning for the future by controlling expenditures, growing revenue where possible, decreasing reliance on state shared revenues and property taxes, and increasing capital reserve ratios for facilities and equipment. The Village has benefited from a history of sound financial planning and current initiatives focus more specifically on organizational efficiency, maintaining a stable tax environment, rehabilitating infrastructure and stimulating new development and redevelopment. Village staff members have worked diligently to provide for a balanced tax structure with no new taxes proposed, a nominal-growth ad valorem tax rate for the forthcoming year and appropriate resources allocated for public safety, infrastructure and general services. STRATEGIC PLANNING AND MANAGEMENT The Village will continue its commitment to strategic planning and management in 2013. During 2012, the Village Board, management team and staff engaged in several focus group sessions to define the strategic mission for the organization over the next three- to- five years. The results of this effort are incorporated into the financial plan and set forth Village of Buffalo Grove 3 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 several initiatives to be completed in the next year. 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 lay the foundation for the development of the Village’s 2013 work plan. At the global level, the Village is faced with resizing its core and non-core services to meet financial targets over the next few years. As described later in this correspondence and throughout Section 4: Executive Overview, external economic factors and local economic indicators point to a weak revenue scenario for several years. The Five Year Operating Financial Forecast 2013 – 2017, presented to the Village Board on August 20, 2012, shows a $1.4 million structural operating deficit expected for FY 2014 and subsequent years. Accounting for full capital reserve transfers, the projected 2014 operating deficit exceeds $2.0 million. Given additional pressure on ad valorem tax levies as home values remain low, the remaining financial levers available to the Village are to reduce expenses, maintain a strong balance sheet and evaluate the priority of services the Village provides to its residents and businesses. To that end, the Village Board can expect additional analysis in the coming year of service delivery expectations and corollary staffing needs, fleet resizing recommendations and possible alternate service delivery models to deliver a sustainable and outcome-oriented local government operation. GENERAL OPERATIONS The Village’s 2013 financial plan focuses specifically on maintaining current levels of service with capital investments precisely targeted in the most needed areas, such as backlogged street resurfacing and maintenance, Emerald Ash Borer response, storm sewer utility maintenance and water system improvements. Within the area of general operations, staffing levels are projected to decrease slightly due to vacancies in current positions as well as phase-out of part-time non-core service positions in Police and Public Works. Projected total personnel will decrease from 320 to 311 for the year, with full- time personnel expected to decrease from 228 to 224 and part-time staff reduced from 92 to 87, year over year. Over the past three years, total staffing Village-wide has decreased five percent through attrition, with 70 percent of the reduction occurring in full-time positions. For 2013, no significant service modifications are anticipated, aside from the implementation of the Rental Inspection Program. The water and sewer utility e-services portal is projected to go live in first quarter 2013 and credit card merchant services will also be reviewed by the Village Board in the same period. Additional deployment of timekeeping and payroll services in the New World Systems enterprise software will occur in January. For 2013, the Village intends to continue its analysis of the Community Development module available through New World Systems, which has the potential to streamline licensing, permitting and online services related to construction, business operations and property maintenance, reducing the frequency of disparate databases currently used for these functions. Village of Buffalo Grove 4 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 A significant new initiative in 2013 will be a renewed commitment to developing Geographic Information Systems (GIS) services for use throughout the Village. It is proposed to join the GIS Consortium, a 20-member agency comprised of area municipalities and designed to leverage economies of scale in developing and operating GIS assets. For 2013, the development of parcel and facility base mapping will be planned and phased, with subsequent enhancement of utility, parcel and community asset information to occur in subsequent years. As the Village evolves its customer service delivery model to a customer relationship management (CRM) platform, the necessity of real-time service data for use by both residents and technicians in the field will be critical in maximizing efficiency, understanding the costs and value of services and managing customer expectations. The Village’s economic development strategy has evolved significantly since 2011, with the proposal by CRM Properties Group to redevelop the municipal campus and a portion of the Buffalo Grove Golf Club properties into a central business district development. As a result, the Village and the developer will spend the better part of 2013 analyzing and developing the concept plan for the proposed project, as well as establishing terms and conditions for the project to advance to possible approval, subject to extensive Village Board review. Village staff continues to coordinate with commercial property owners in the Dundee and Milwaukee Road corridors to affect redevelopment of vacant land and declining commercial areas. As stated in 2012, the higher-than-average asking prices for key properties continues to be a limiting factor in initiating redevelopment projects, exacerbated by the weak-but-improving retail climate in the area. As a function of the Village’s strategic planning efforts, the addition of retail locations is necessary to mitigate the impact of property taxes on residential and commercial properties in future years. The addition of Lux Automotive at the former Prestige Auto site has been a welcome addition to the Village in 2012, in addition to the newly constructed Noodles & Company, Moe’s Southwest Grill and Starbuck’s restaurants at Plaza Verde East. The Village also enjoyed the addition of several new non-retail commercial enterprises in 2012, including the expansion of Connexion, Leica Microsystems, Sysmex and LG Electronics’ North American R&D Center. Golf operations enjoyed a dry and warm season in 2012, contributing to significant improvements in round play and revenue per round for the year. The golf industry continues to lag with an oversupply of courses in the area and insufficient player demand. An analysis of the future of the Buffalo Grove Golf Club operation will be completed as part of the proposed downtown project and presented for Village Board consideration of future operations. Overall, cost containment and aggressive marketing strategies will be the primary focus at both courses for the foreseeable future. General Fund Revenues FY 2013 General Fund revenue is expected to increase slightly by $502,451, or 1.5 percent, over 2012 budget and to increase $562,346 or 1.7 percent from 2012 estimated actual. Total General Fund revenues for 2013 are estimated at $34,009,551. Within the General Fund tax revenue source profile, state and home rule sales tax returns are projected to increase three percent from 2012 estimated actual, income tax is projected to Village of Buffalo Grove 5 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 increase by 7.8 percent from 2012 estimated actual, and utility use taxes for natural gas and electric are expected to remain level. Building revenues and fees are anticipated to decrease 26 percent from 2012 budget, equating to a total of $645,000 in permit and inspection fees. This revenue has remained stable in recent years with existing facility expansions, relocations and residential remodeling in light of declining new home starts. Other General Fund revenues of note include the prepared food and beverage tax, which accounts for 2.5 percent of the operating revenue and is steadily increasing at a rate of 2.5 percent and the real estate transfer tax, which is slowly recovering from the 2008 residential housing meltdown at a projected rate of increase of five percent for 2013, for a net revenue of $525,000. The ad valorem (property tax) levy is discussed in further detail within this correspondence and within Section 4: Executive Overview. The General Fund revenue projections included in the 2013 budget are consistent with the five-year projections presented to the Village Board on August 20, 2012, with 1.0 percent variation from overall projection. Additional information concerning revenue projections and trends may be reviewed in Section 4: Executive Overview. General Fund Expenditures The Village has been diligent in monitoring operating expenses and has budgeted its expenses wisely. General Fund actual expenditure as a percentage of budget for 2010 and 2011 was 99.6 and 100.8 percent, respectively, and is expected to finish at 100.3 percent for 2012. The 2012 General Fund budget will increase slightly at $33.99 million ($555,265 net increase year-over-year), including planned personnel wages and benefits, increased commodity costs and general increases in the cost of operations. The compromised revenue scenario of recent years has necessitated an innovative approach to balancing the budget. Village staff has instituted a series of key strategies to control expenditures in 2013, including the following assumptions: 1. Replacement reserve contributions are approached on a pay-as-you-go basis, excess fund balance and better-than-expected financial performance establish the vehicle for reserve funding, reviewed on an annual cycle. For 2013, a $400,000 reserve contribution is budgeted; 2. Village staff will continue to seek ways to reduce aggregate personnel expenses, carefully assessing all vacant positions, evaluating organizational efficiencies and recommending policies that maintain a competitive wage and benefit program; 3. An across-the-board 2.0 percent wage increase is factored in to salaries for the 2013 fiscal year; 4. Golf operating deficits have decreased substantially, estimated at breakeven for 2012 and 2013. Staff will continue to monitor revenue and expense performance in this enterprise unit to minimize reliance on general operating revenues; 5. Certain capital projects will utilize reserve funds in order to expedite project completion; and 6. Budget compliance will be a significant issue for Village management again in 2013, ensuring that reduced or flat line-item growth can continue, if possible. The combination of strategies employed by the management team results in a net 1.66 percent growth rate in the operating budget year-over-year. Of note, the Village’s total Village of Buffalo Grove 6 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 corporate fund expenditures have experienced a net decrease of $1,000,000 in the four year period ending December 31, 2013 when factoring in capital reserve and pension transfers. During the same period, the consumer price index has increased more than eight percent. Fund Balance The Village of Buffalo Grove utilizes an adopted fund balance policy to provide for an unassigned fund balance. As a home rule municipality, the Village is not subject to state- mandated fund reserve policies. The corporate fund reserve policy was decreased in 2010 from 35 percent to 25 percent of the subsequent year’s budget (less pension transfers), or approximately three months of operating expenditures. The Village’s fund balance policy is structured to provide sufficient cash-flow as necessary and sound fiscal management has permitted the continuation of essential services without significant financial impact during the economic downturn. The Village’s proactive fund management has been cited by Standard & Poor’s and Moody’s Investor Services as a key factor in maintaining a AAA and Aaa bond rating, respectively, and was recently affirmed for existing as well as new debt issued in 2012. For 2013, an unassigned fund balance of $7.4 million is required to maintain sufficient operating cash within the Corporate Fund. Unassigned fund balance is projected to be $8.9 million, or 29.9 percent of the 2013 budget, less pension transfers as of December 31, 2013. 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, including capital projects-streets, the Motor Fuel Tax Fund and the Water and Sanitary Sewerage Fund. ECONOMIC AND POLITICAL CLIMATE: As stated previously, external economic factors at the national and state levels continue to impact the Village’s revenue profile and, subsequently, its ability to manage operating and capital resources. At the national level, U.S. employment growth remains slow, with a 10-year projection of labor force growth of 5.93 percent, and a 2013-2014 projected expansion of a mere 0.69 percent1. The growth in U.S. employment is severely lacking at an average of 1.1 million positions added on an annual basis, meaning that the base expansion of employment opportunities is not keeping pace with the growth in labor force eligible persons, exclusive of those currently unemployed and seeking work. The Chicago metropolitan area is projected to fare better than the national average, with a 12 percent increase in employment projected from 2011 through 20212. The Village of Buffalo Grove’s unemployment statistics have consistently beat the national and state averages, with a September 2012 rate of 7.2 percent, 1.5 percent better than the metro area rate for the same period3. The Village’s unemployment peaked at 8.4 percent in 2010 and has steadily declined since. The projected growth segments for Chicago metro employment are highest in health care and social services (20 percent), professional, scientific and technical services (20 percent) and finance-insurance services (19 percent) 1 Source: U.S. Department of Labor, Bureau of Labor Statistics 2 Source: Workforce Boards of Metropolitan Chicago 3 Source: Illinois Department of Employment Security, Local Area Unemployment Statistics Village of Buffalo Grove 7 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 over the ten year period4. These growth segments are of particular importance to the northwest suburban market, with a workforce concentrated in these skilled occupations. Currently, the Chicago metro employment market remains at 150,000 fewer jobs in the labor force compared to its 2007 peak of 3.9 million positions. Housing starts and sales remain similarly weak. Median home value in the Village was $216,900 in September 2012, a 39 percent drop since the peak of $350,000 at year-end 20065. Median sale price has declined 6.1 percent year-over-year as of September 2012, which parallels the expected decrease in the Village’s 2012 EAV. Through the third quarter of 2012, the Village has issued nine permits for new residential construction. The financial meltdown associated with the State of Illinois’ unfunded and growing liabilities continues to affect statewide economic growth and resulting revenue streams. Illinois earned the distinction of having the fifth highest debt per capita of all U.S. states at $21,067 in October 2012. The state’s current debt and liabilities are estimated at $271 billion, with $192 billion of that total, or 71 percent, attributed to unfunded pension liabilities6. In addition, the state’s total debt is the fourth highest in the nation, trailing California, New York and Texas. Added to the ongoing structural deficit, the State of Illinois General Fund Balance for FY 2010 is in deficit $9.24 billion7. With no projected rebound in sight unless and until the General Assembly reduces liabilities or increases revenues, Moody’s Investor Services has responded by downgrading the state’s bond ratings to A2, its second ratings downgrade of the agency in two years. Despite the bleak economic forecasts for the state, many municipalities (including the Village) have been able to maintain strong balance sheets. Those municipalities proven to be the most adaptive to changing economic conditions and less reliant on long-term debt and state revenue sources will ultimately fare better in the new economy. Ultimately, the management of long-term pension liabilities, collective bargaining rights and employee benefit structures, which comprise 70 percent or more of most municipal budgets, lies with the Illinois General Assembly. The legislature, up to this point, has been unable to come to consensus on, or enact meaningful reform to, any of these issues. Market forces continue to plague the Village’s investment returns as well. The 2013 budget anticipates corporate investment returns of 0.5 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 rebounded to a degree better than expected, with the Police and Fire pensions earning 4.4 and 1.83 percent returns, respectively, for the period ending December 31, 2011. 4 Source: Workforce Boards of Metropolitan Chicago 5 Source: Zillow.com Home Value Index 6 Source: Chicago Tribune, October 12, 2012 7 Source: State Comptroller Judy Baar Topinka, GAAP Fund Balance Village of Buffalo Grove 8 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 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 increase 9.33 percent, or $5,246,938, from 2012, primarily due to an increase in the volume and impact of capital projects. Capital projects will increase $4.6 million, from 10.1 percent to 14.2 percent of the total budget for the upcoming year, primarily due to planned street resurfacing projects and EAB tree removal and replacement. The following table provides a summary of all funds. Fund 12/31/13 Revenue & Other Sources Corporate Fund $34,009,551 Special Revenue Funds 2,947,745 Debt Service Funds 1,338,696 Capital Project Funds 1,586,197 Enterprise Funds 12,564,416 Permanent/Pension Funds 8,826,452 Total $61,273,057 Balance Sheet Considerations The Village issued general obligation bonds totaling $6,000,000 in 2012 for street improvement projects and plans to issue an additional taxable line of credit totaling $6,000,000 for EAB removal and reforestation before year end. The Village continues to take an aggressive approach to managing debt, having retired $920,000 in debt obligations in FY 2012. For 2013, the Village will retire an additional $940,000 on the Series 2003, Series 2010-A, Series 2010-B and Series 2012 issues. By year-end 2013, the Village will have outstanding debt totaling $11,340,000 with all current debt maturing no later than 2030. The Village’s ability to fund long term depreciation for capital facilities and equipment has been dependent on budget surpluses in recent years and will continue in 2013 with a planned capital reserve transfer of $400,000. CAPITAL INVESTMENTS: Specific capital projects for 2013 include: 1. Street, Sidewalk and Bike Path Maintenance. A total of $4.85 million is allocated for resurfacing, sidewalk repair and maintenance and bike path maintenance projects for the year, a 140 percent increase year-over-year. 2. Dundee Road Streetscape Improvements. In accordance with the Dundee Road Streetscape Plan, continued pedestrian accessibility and sidewalk/bike path infill projects totaling $60,000 are planned for 2013. Grant applications have been filed for median streetscape improvements in this corridor as well. Village of Buffalo Grove 9 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 3. Raupp Boulevard Bridge Reconstruction. Funds are designated for design services for the bridge replacement. Total project cost is estimated at $1,000,000, with up to $800,000 eligible for reimbursement under the Highway Bridge Replacement and Rehabilitation Program. 4. Emerald Ash Borer Tree Removal and Reforestation. A total of $1,000,000 is allocated for FY 2013 ash tree removals and replacement. The Village Board has approved multiple tree growing contracts in 2012 and will consider a tree removal bid award before year-end. 5. Geographic Information System (GIS) Development. A participation fee of $152,997 is proposed to join the GIS Consortium for development of base mapping and data sets for use throughout Village departments. 6. Sanitary Sewer Lift Station Repairs. The Village continues to work with the Metropolitan Water Reclamation District to affect repairs to aging lift stations in the Cook County portion of the Village. For 2013, $780,000 is designated for repairs and generator improvements. 7. Village-wide Storm Sewer Repair. $200,000 is allocated for general maintenance improvements to storm sewer facilities. Future consideration of a storm sewer utility fee is warranted as the Village’s storm sewer assets age and require additional maintenance. 8. Pump House Repairs/Security Improvements. Various projects totaling $600,000 are planned at the Village’s pump houses to improve security of the potable water supply and other improvements identified in the 2008 system study. The completion of this project is subject to available funds in the Water and Sewer Fund. 9. Weiland Road / Lake Cook Road Improvements. As the phase one study is scheduled for completion in 2013, $100,452 is earmarked to complete engineering. Funding allocations for project construction by Lake and Cook counties are not finalized at this time. In total, the capital projects budget is $8,548,867 for FY 2013, inclusive of Capital Projects, Motor Fuel Tax, Water & Sewer, Line of Credit and General Fund sources. The Public Service Center expansion project will remain deferred until at least 2014. ENTERPRISE ACTIVITIES: Water and Sewerage Utility The Village Board approved a rate increase for water and sanitary sewer services on July 9, 2012. Under the new rate schedule, effective January 1, 2013, the combined rate will increase from $3.00 per 1,000 gallons consumed to $4.05. An additional rate increase is scheduled to take effect on January 1, 2014, increasing the combined rate to $5.26 per 1,000 gallons consumed. It should be noted that the Lake County Department of Public Works is currently preparing a rate analysis for the Southeast Wastewater Treatment Plant. A rate schedule will be presented to the Village Board when it becomes available. The agreement for wastewater treatment services provided by Lake County expired in March 2012. Village of Buffalo Grove 10 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 The Northwest Water Commission is required to provide notice to the City of Evanston in 2013 concerning the extension or termination of its water supply contract in 2023. As the Commission completes its strategic planning process, a recommendation concerning the Evanston supply agreement, as well as the Village’s member agreement with the Commission, will be presented to the Village Board for consideration. FEES, SALES & USE TAXES AND THE PROPERTY TAX LEVY: The following rate/tax amendments are proposed in the FY 2013 budget: Property Tax Levy The 2012 tax levy includes fully funded Fire, Police and IMRF pension allocations as well as funding for general operations and debt service, for a total corporate levy of $14.7 million. Of the total levy request, $1,321,301 will be used to service debt on the Series 2003, Series 2010-A and Series 2010-B bonds. The net property tax levy after abatements is scheduled to increase 1.5 percent or less. No additional fee, rate or tax amendments are proposed for the year. PERSONNEL FACTORS: Staffing Personnel levels have decreased significantly since 2010 as a result of the Village’s Voluntary Separation Incentive (VSI) program, with 224 full-time positions and 87 part- time positions included in the 2013 budget. It is anticipated that personnel levels will vary throughout the year and may average less than the budgeted amount due to planned retirements and reorganization efforts. Wages It is desirable that the Village provide for a wage enhancement in 2013 in order to maintain a competitive environment for talented individuals. As noted in the General Fund Expenditure strategy, a 2.0 percent general wage increase has been included in the salaries of full-time and part-time personnel. The Village has been able to provide for limited salary progression for those employees moving through the salary ranges since 2009, with a five percent increase granted on January 1, 2012. Further analysis of range progression is warranted for those employees who were frozen in range in 2009, exclusive of any pay range adjustments as a result of the 2010 Position Classification and Compensation Plan or general wage increases. The salary progression component of the compensation plan is important to retention efforts and has created a significant gap for the Village’s shorter-tenured employees. As proposed in 2011 and again in 2012, the reduction in the Village’s total personnel is the catalyst to make salary progression for all employees possible. The Village Board has expressed an interest in revisiting the pay- for-performance plan in 2013. Staff will develop a recommendation with options for Board consideration. The Village will negotiate a new collective bargaining agreement with IAFF Local 3177 in 2013. It is also expected that a new contract with the Metropolitan Alliance of Police will be forthcoming in 2013. As the outcome of these negotiations is unknown, no Village of Buffalo Grove 11 2013 Adopted Budget Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500 additional funds beyond the previously approved general wage increases and currently budgeted amounts have been included. The budget also reflects the final phase-out of the deferred compensation program for senior management employees. The current contribution made by the Village to employees of up to five percent of gross earnings has been eliminated for 2013. 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. To that end, the budget includes training and professional development for employees based on operational needs. In addition, out-of-state travel has been budgeted to provide such travel where no other options exist to obtain sufficient training. When utilizing out-of-state travel, the Village Manager must first approve the training based on established criteria. Employee Health & Wellness For 2013, 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 re-association with IPBC represents a significant step to provide balance and predictability to the Village’s self-funded health plan, with the incorporation of a nine percent fund reserve mandated by the cooperative. For 2013, various premium changes will take effect, including the second increase in employee percentage of premium contribution from 11 to 12 percent of total premium. 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 challenging and 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, Assistant Finance Director Katie Skibbe and Assistant to the Village Manager Leisa Niemotka for their contribution in creating the budget document. Grateful appreciation is extended to Anne Marie Gaura, Interim Deputy Village Manager, Greg Boysen, Director of Public Works, Fire Chief Terrence Vavra, Police Chief Steve Balinski, Arthur Malinowski, Director of Human Resources, Carmen Molinaro, Director of Golf, Bob Pfeil, Village Planner, Nidhi Vaid, Associate Planner, LeConte Lewis, Payroll Specialist and Village Clerk Jan Sirabian for their cooperation, responsiveness and ability to get the job done. Finally, the Village Board deserves sincere appreciation for their stewardship over Village finances and planning for the Village’s future. Respectfully, Dane Bragg, Village Manager Village of Buffalo Grove 12 2013 Adopted Budget Section 2 Organization and Services Village of Buffalo Grove Map List of Principal Officials Vision and Mission Statement Strategic Priorities Organizational Chart Village Commissions, Committees and Boards Village Overview Village of Buffalo Grove 13 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 14 2013 Adopted Budget Village of Buffalo Grove Map Village of Buffalo Grove 15 2013 Adopted Budget Principal Officials Elected Officials Jeffrey Braiman Village President Jeffrey Berman Steve Trilling Beverly Sussman Village Trustee Village Trustee Village Trustee Mike Terson Andrew Stein Lester Ottenheimer Janet Sirabian Village Trustee Village Trustee Village Trustee Village Clerk Village of Buffalo Grove 16 2013 Adopted Budget Principal Officials Appointed Officials/Department Directors Dane Bragg Village Manager Anne Marie Gaura Scott Anderson Steve Balinski Interim Deputy Finance Director Police Chief Village Manager Terry Vavra Greg Boysen Art Malinowski Fire Chief Public Works Director Human Resources Director Village of Buffalo Grove 17 2013 Adopted Budget Vision and Mission Statements Vision The Village’s Management Theme is “Achieving Excellence” Mission Excellence in Service Delivery: Continuously evaluate programs and service to ensure they are carried out efficiently and effectively. Excellent Community Focus: Promote programs and services which focus upon enhancements to family values, social amenities and enhanced opportunities that contribute to business expansion and success. Excellent Organizational Dynamics: Ensure that the organization remains accountable as it addresses change and transition. We shall remain committed to competent, dependable and efficient service delivery by all of our staff. Excellent Fiscal Responsibility: Deliver value with the public services in a responsive manner within the parameters of adopted tax and fiscal responsibilities. Furthermore, we remain committed to managing and maintaining the public infrastructure and assets with proactive services. Village of Buffalo Grove 18 2013 Adopted Budget Strategic Priorities Five strategic priorities drive how resources are expended within the Village of Buffalo Grove. These priorities provide a framework for decision making. While the Vision and Mission statements are the “how” of what we do – the strategic priorities are the “what.” Definition: Based on needs and expectations of the community and prioritization of core services, provide optimal service by supporting an adaptive and efficient work force. Categories: Core Services, Organizational Needs, Marketing and Communication. Definition: Create and maintain an environment that engages and empowers all employees in the mission of the Village and encourages the development of human capital and resources. Categories: Leadership and Support, Technology and Collaboration, Personal Growth and Balance. Definition: Maintain a positive financial position with a long term perspective by diversifying revenue sources, aligning fee structures to adequately reflect service demands, reducing the Village’s reliance on property and state shared taxes, and ensuring revenues adequately fund services and infrastructure needs. Categories: Diversification, Reserves and Cost Control. Definition: Maintain and enhance the quality of life in the community through on - going assessment, public and private partnerships, and by leveraging resources to meet community objectives. Create an inviting environment for doing business in the community through targeted communication and marketing methods, consistent with the needs and values of the village. Categories: Active Development and Redevelopment, Opportunity Management, Events and Quality of Life Initiatives Definition: Assess and maintain reliable high quality infrastructure which includes Village buildings, streets, utilities (including water, sanitary sewer and drainage systems), information assets, vehicle fleet, and other assets necessary for maintaining service levels. Plan for the financial resources necessary to maintain current infrastructure, upgrade for efficiency or enhanced capabilities, and plan for the future infrastructure needs of the community. Categories: Planning and Programming, Financial, Green Infrastructure Village of Buffalo Grove 19 2013 Adopted Budget Organizational Chart Residents of Buffalo Grove Village Board Village Manager Golf Operations Buffalo Grove Golf Course Arboretum Golf Course Police Department Patrol Investigations Youth Services Admin Police Records Fire Department Emergency Management Services Fire Suppression and Rescue Fire Prevention & Education Office of the Village Manager Legal Human Resources Building and Zoning Planning Information Technology Emergency Management Agency Finance General Services Deputy Village Clerk Village Treasurer Public Works Admin and Building Maintenance Engineering Operations Central Garage Streets, Drainage & Sewer Forestry Water Village of Buffalo Grove 20 2013 Adopted Budget 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. If individuals are interested in volunteering for a Village Commission, Committee or Board, they are encouraged to complete a Talent Bank Application which is available on the Village’s web site or by calling Village Hall. Appointments are made by the Village President with the concurrence of the Board of Trustees. 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 Board of Health  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 2.42 Youth Commission  Chapter 2.44 Zoning Board of Appeals  Chapter 2.46 Plan 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  Blood Donor Commission, approved by Resolution No. 76-14 on May 3, 1976.  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 of Buffalo Grove 21 2013 Adopted Budget 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 41,655 (2011 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.  Population: 41,655 (American Community Survey 3-Year estimates, 2009-2011)  Median age: 42.5 (American Community Survey 3-Year estimates)  Median household income: $89,992 (American Community Survey 3-Year estimates)  Per capita income: $44,067 (American Community Survey 3-Year estimates) Village of Buffalo Grove 22 2013 Adopted Budget  Total housing units: 16,965 (2012 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 2011 - December 2011:  Multi-family: $89,900  Single family attached: $171,250  Single family detached: $290,000  Median home value: $205,000 Village of Buffalo Grove Statistical Breakdown Source: U.S. Bureau of Census 164 1492 11799 22,230 36427 42909 41496 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 1958 1960 1970 1980 1990 2000 2010 Po p u l a t i o n Year Village of Buffalo Grove Population 1958-2010 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75+ Pe r c e n t o f P o p u l a t i o n Age Group Village of Buffalo Grove, 1980 to 2010 Census 04/01/1980 Census 04/01/1990 Census 04/01/2000 Census 04/01/2010 Village of Buffalo Grove 23 2013 Adopted Budget 28.1 32.2 37.4 41.9 0 10 20 30 40 50 1980 1990 2000 2010 Ag e Year Village of Buffalo Grove Median Age 1980-2010 -15.00 -10.00 -5.00 0.00 5.00 10.00 15.00 Age 0 to 4 Age 5 to 9 Age 10 to 14 Age 15 to 17 Age 18 to 20 Age 21 to 24 Age 25 to 34 Age 35 to 44 Age 45 to 49 Age 50 to 54 Age 55 to 59 Age 60 to 64 Age 65 to 74 Age 75 to 84 Age 85 and over Percent Ag e C l a s s Population Pyramid for Buffalo Grove, 2000 % Female % Male -10.00 -5.00 0.00 5.00 10.00 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 Village of Buffalo Grove 24 2013 Adopted Budget $30,417 $56,011 $80,525 $88,272 $0 $20,000 $40,000 $60,000 $80,000 $100,000 1980 1990 2000 2010 In c o m e Year Village of Buffalo Grove Median Household Income, 1980 to 2010 0% 20% 40% 60% 80% 100% 1980 1990 2000 2011* Buffalo Grove Housing Distribution 1980-2011 Single Family Detached Single Family Attached Multi-Family * Based on the Division of Planning Services Estimate as of December 31, 2011 $10,322 $23,718 $36,696 $43,806 $0 $10,000 $20,000 $30,000 $40,000 $50,000 1980 1990 2000 2010 In c o m e Year Village of Buffalo Grove Per Capita Income, 1980 to 2010 Village of Buffalo Grove 25 2013 Adopted Budget Single Family Detached (SFD), 43.8% Single Family Attached (SFA), 9.2% Multiple Family (MF), 4.2% Commercial, 4.8% Office, 2.4% Industrial, 10.9% Public/Semi-Public, 3.4% Parks/Open Space, 13.7% Right-of-Way (Major)/ Utility, 6.1% Vacant, 1.4% Village of Buffalo Grove Land Use Village of Buffalo Grove 26 2013 Adopted Budget Village Government Home Rule Authority The Village of Buffalo Grove is a Home Rule Unit by virtue of the provisions of the Constitution of the State of Illinois of 1970. Home Rule allows a community to take actions not specifically prohibited by the state statutes. Conversely, a non-home rule community can only undertake those actions specifically allowed for in the state statues. Home rule enables a municipality or county to establish its own system of self-governance without receiving a charter from the state. Home rule shifts much of the responsibility for local government from the state legislature to the local community. The most significant powers granted to a home rule community include the ability to enact its own police powers (health, safety, morals and general welfare), to issue bonds without referendum and exemption from property tax caps under the Property Tax Extension Law Limit (PTELL.) Council-Manager Form of Government The Village established the council-manager form of government by referendum on July 1, 1980. The council-manager form is the system of local government that combines the strong political leadership of elected officials in the form of a council or board, with the strong managerial experience of an appointed local government manager. The form establishes a representative system where all policy is concentrated in the elected board and the board hires a professionally trained manager to oversee the delivery of public services. Under council-manager form, those duties not specifically reserved by the elected body pass to the Village Manager and his/her professional staff. Equalized Assessed Value The equalized assessed value, or EAV, is the result of applying the state equalization factor to the assessed value of a parcel of property. Tax bills are calculated by multiplying the EAV (after any deductions for homesteads) by the tax rate. Below are the Cook County, Lake County and total EAV of property within the Village. For Cook and Lake Counties, the assumption is that property values will decrease another 5% in 2013. TAX YEAR COOK COUNTY % INC LAKE COUNTY % INC TOTAL VALUE % INC 2005QL 343,381,864 --- 1,264,882,929 --- 1,608,264,793 --- 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 370,343,748 -8.56% 1,294,187,616 -5.47% 1,664,531,364 -6.18% TC= Triennial property assessment cycle (Cook County) QL= Quadrennial property assessment cycle (Lake County) Village of Buffalo Grove 27 2013 Adopted Budget Economic Development On an annual basis, the Village develops an Economic Development Work Plan which is an ambitious, yet achievable strategic business development agenda for the Village of Buffalo Grove for the calendar year. The Economic Development Work Plan can be found on the Village’s web site at www.vbg.org. The purpose of the Plan is to articulate a set of measurable strategies and actions to facilitate economic growth and new opportunities in the Village. Similar to neighboring communities and the nation as a whole, the Village of Buffalo Grove continues to be challenged economically. However, the business development approach remains aggressive as the Village is committed to business development, business outreach, and community planning. The Plan identifies efforts to be made and strategies to follow to work with property owners, developers, brokers, retailers, consultants and others for continued economic prosperity and enhanced vitality of the Village. The Plan is intended to provide guidance and direction for community development efforts within the Village. The Plan was drafted with input from Village staff, business owners, local developers, property managers, and the Village Board. The Plan includes Policy Strategies, Retail Activity Strategies, Residential Development Strategies, Database Development Programs, and Relationships with other Organizations which enhances business development activities and initiatives. Following are three target areas where the Village staff is currently working with property owners, brokers, developers and others in the real estate industry to promote development. Downtown Buffalo Grove The Village is reviewing the proposed redevelopment of 65 acres of the Buffalo Grove Golf Course property and the Village of Buffalo Grove municipal campus. The development seeks to create a Downtown Buffalo Grove by including a mix of retail stores, restaurants, offices, theaters, rental and owner-occupied residential housing, municipal buildings and a community park. The proposed development contemplates four themes to provide for a true-to-form central business district inclusive of an: entertainment district, retail and dining district, a residential district and a public services district. Village of Buffalo Grove 28 2013 Adopted Budget The proposed project is estimated to have a total construction impact of $320 million, consisting of $216 million in private investment, $42 million in public facility development and $62 million in site and infrastructure development. In addition to the initial development impact, a significant gain in retail sales would be achieved by the development. Within the first full year of retail build-out, the development is anticipated to conservatively generate approximately $100 million in retail sales. By comparison, this would represent a 22 percent increase over the Village’s total 2011 retail sales of $450 million. Milwaukee Avenue Corridor The Milwaukee Avenue Corridor consists of three designated development sites and various potential redevelopment sites, including:  Berenesa Plaza I, 17.94 acres, located at the northwest corner of Deerfield Road and Milwaukee Avenue;  Berenesa Plaza II, 6.2 acres, located at the southwest corner of Deerfield Road and Milwaukee Avenue;  Land & Lakes Property, 17 acres along the west frontage and 41 acres along the west rear of the property, located north of Busch Parkway and south of the City Park Development;  Busch Parkway/Milwaukee, approximately 6 acres, containing an existing industrial building and immediately south of the Land & Lakes property;  Various Annexation, Potential Development and Redevelopment sites located between Deerfield Parkway and Lake Cook Road, along the Milwaukee Avenue Corridor. The Village has met several times in 2012 with the property owner and developers concerning Berenesa Plaza to discuss site plan modifications and marketing strategies to attract high-quality retailers and other uses that would support the commercial component of the development. Pictured above is the approved preliminary plan for Berenesa Plaza at the north and southwest corners of Milwaukee Avenue & Deerfield Parkway. Pictured left is the Land & Lakes property, on the west side of Milwaukee Avenue. Village staff coordinates on a regular basis with the Land & Lakes team concerning development of the property. The certification of completion of post closure care for the landfill operation was approved by the Illinois Environmental Protection Agency (IEPA) on January 13, 2012. Village of Buffalo Grove 29 2013 Adopted Budget Dundee Road Corridor The Dundee Road corridor has two designated redevelopment sites. The first is 15.94 acres and was occupied by three automotive dealerships. The developable parcels are broken down by the following acreages: 3.99 acres; 4.13 acres; and 5.28 acres. This redevelopment site also includes 2.54 acres of storm water management. The second designated redevelopment site is the Cambridge Commons shopping center (4.71 acres). The Village is working with a developer on a proposed renovation of the shopping center, including a façade improvement and new signage. The redevelopment project, including construction, will be an investment of approximately $16 to $18 million. The corridor also consists of several other redevelopment opportunities. At the Plaza Verde East shopping center, located at the southwest corner of Arlington Height Road and Dundee Road, a new commercial building is now occupied by several restaurants. Plans have been approved for construction of a Chase Bank and improvements to a portion of the shopping center building for the Plaza at Buffalo Grove, located on the west side of Buffalo Grove Road north of Dundee Road. In addition, the Village is currently preparing designs for streetscape improvements to the corridor, scheduled for construction in 2013, to improve pedestrian and bicycle access to the commercial district. Village of Buffalo Grove 30 2013 Adopted Budget Se   Budg Budget P Budget T Budget S Basis of B Annual B Fund Stru Account  Current V                             ectio et Proc Process  Timeline  Sections  Budgeting  Budget vs. Fin ucture  Numbers  Village Fund on  cess and nancial State s  3  d Struct ements  ture  Village of Buffalo Grove 31 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 32 2013 Adopted Budget Budget Process This budget document is the result of the Village’s financial and operational planning process and serves as the guide for implementing those plans. The process brings together input from elected officials, department directors, departmental staff, and the public in order to shape the Village’s goals and objectives. Staff begins preparing the next year’s budget nearly a year prior to 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 format on the Village’s website, www.vbg.org. While the proposed budget must be available for public inspection at least ten days prior to passage, the Village routinely has it available in advance of this deadline. In November, a series of meetings are conducted covering the proposed budget and tax levy. The Village Manager, Finance Director, and Department Directors are present to address any issues or concerns presented by the Village President, trustees and residents. After the public meetings, the budget may be further revised and passed without further public inspection, notice or hearing. The final budget and appropriation ordinance is typically approved in December. Once the budget has been approved, the Village Manager and Finance Director continue to monitor the Village’s rate of revenue collections and expenditures to assure a healthy financial condition. If revenue projections drop below staff’s original estimates, the Village Manager will direct staff to reduce expenditures. Any transfers necessary to adjust the budget can be made by the Village, as long as the changes do not exceed the approved appropriation. If this circumstance arises, the budget changes must be considered and approved by the Village Board as an Appropriation Transfer Ordinance. If there is a significant change to the total budget, a Supplemental Appropriation must be approved by the Village Board. Village of Buffalo Grove 33 2013 Adopted Budget Budget Timeline Date Event Requirement/Action July 3, 2012 Fee & Fine Schedule Distributed Distribution of Existing Fee and Fine Schedule July 9, 2012 Village Board Meeting FY 2013 Water Rate Recommendation July 11, 2012 Building Remodeling Requests Distributed Request Forms Distributed July 23, 2012 Budget Instructions to Departments Budget instructions provided to Department Directors July 23, 2012 Committee of the Whole Meeting Overview provided by Public Works on current year projects. July 23, 2012 Distribute FY 2013-2017 CIP Program Update. Department Directors submit requests for the next 5 year Capital Program. July 30, 2012 Finance Staff to Distribute Budget Worksheets Worksheets provided to build estimated actuals and budget requests. July 30, 2012 Health Insurance Census HR to send out census worksheets. August 1, 2012 Fee & Fine Schedule Review All recommendation submitted to Finance. August 6, 2012 Building Remodeling Requests Due Requests sent to Brett Robinson August 6, 2012 Village Board Meeting FY 2012 Six Month Financial Report presented to the Village Board. August 6, 2012 Village Board Meeting FY 2012 CIP Project Status Report August 14, 2012 Health Insurance Calculations Human Resources to develop insurance budgets and distribute. July 16 - August 15, 2012 Revenue Development Staff develops revenue estimates August 15, 2012 Capital Equip/Technology Worksheets Distributed Identify all cap. equipment/technology requests over the next 5 years. August 20, 2012 Committee of the Whole Presentation of 5 Year Proforma, Fee & Fine Recommendations, and General Wage Recommendation. August 21, 2012 FY 2013-2017 CIP Submittals Reports due to Engineering August 23, 2012 Department Budgets Due Copies submitted to OVM & Finance August 27 - August 29, 2012 Department Meetings Meet with Village Manager and Finance Director August 27, 2012 CIP Review Village Manager/Finance/Engineering review capital requests September 17- October 15 Final Budget Preparation Final document is compiled for distribution. October 15, 2012 Village Board Meeting Presentation of the FY 2013-2017 Capital Improvement Plan to the Village Board. November 5, 2012 Village Board Meeting FY 2013-2017 CIP adopted by Resolution. October 29, 2012 Draft Budget Distributed Village Board provided with budget November 5, 2012 Village Board Meeting FY 2013 Truth in Taxation Determination November 26, 2012 Village Board Meeting FY 2013 draft budget presentation December 3, 2012 Village Board Meeting FY 2013 tax levy (public hearing) and FY 2013 Budget adopted by resolution December 17, 2012 Village Board Meeting FY 2013 Appropriation Ordinance Village of Buffalo Grove 34 2013 Adopted Budget Budget Sections The Budget is divided into nine 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 map of the Village, 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 mission statement and Village-wide goals. 3. Budget Process and Structure: This section provides the reader with general information on how the budget was developed, including a timeline and its general format. 4. Executive Overview: In the Executive Overview section, the overall revenues and expenditures are presented by fund, as are fund balance projections, debt levels, staffing levels, and budget assumptions. Trend analysis allows the Village to monitor changes and anticipate future issues. This section identifies the factors that affect financial condition and logically arranges them to facilitate analysis and measurement. This information serves as a management tool by combining information from Village documents with relevant economic data. Strategic goals are presented in this section as 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 strategic goals, accomplishments, staffing, budget variances and changes. 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 changes. 8. Fiduciary Funds: This section presents both of the Village’s fiduciary funds – Police and Firefighters Pension Funds. 9. Other Funds: This section provides the budgets for the Illinois Municipal Retirement Fund, the Parking Lot Fund and the Facilities Development Debt Service Fund. 10. Appendix A Comprehensive Fee and Tax Schedule: All fees and taxes for the Village of Buffalo Grove. 11. Appendix B Financial Policies and Projections: All codified financial management policies. 12. Appendix C Human Resources: A summary of health insurance plan benefits and an aggregate of Village staffing levels. 13. Appendix D Document Definitions: Includes definitions of key terms and acronyms that are found throughout the budget book. Village of Buffalo Grove 35 2013 Adopted Budget 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. All funds presented in the 2013 Budget are appropriated. 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, although the full purchase price of capital expenditures is included. A reconciliation of the difference is provided in the Village’s Comprehensive Annual Financial Report (CAFR). Funds that are not budgeted, but are part of the Comprehensive Annual Financial Report are 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: Illinois Municipal Retirement Fund, Parking Lot Fund, and Motor Fuel Tax Fund. Other governmental funds include the Facilities Development 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 Village of Buffalo Grove 36 2013 Adopted Budget Projects – Streets Fund. These funds provide resources for the design and construction of capital projects, as well as the procurement of long-term assets. Currently the Village maintains one type of proprietary fund – an enterprise fund. 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. 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 (see Appendix B). These policies provide and help maintain a favorable financial picture for the Village. 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 $15,000. 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. Balancing the budget is never an appropriate use of reserves. 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. 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. Village of Buffalo Grove 37 2013 Adopted Budget 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.25 – Information Technology 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.65 – Emergency Management Agency XXX.70 – Transfer Non-Operating XXX.75 – Capital Improvement XXX.80 – IMRF/Social Security 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.55.05 – Building Services XXX.55.10 – Streets XXX.55.15 – Administration XXX.55.20 – Forestry XXX.55.25 – Drainage XXX.55.30 – Central Garage 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 3XX – Fund Equity 4XX – Income 5XX – Expenditure/Expense Village of Buffalo Grove 38 2013 Adopted Budget 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. In this case, 510.16 is Operating Expenses – Printing, Revenue accounts are not associated with a department or division and look like this: 100.465.90 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 Village of Buffalo Grove 39 2013 Adopted Budget Current Village Funds Type Fund Name Fund No. Description General General 100 The Village’s chief operating fund. Accounts for all financial resources except those required to be accounted for in another fund. Special Revenue Illinois Municipal Retirement 110 Accounts for revenues derived from a separate property tax levy and employee contributions which are subsequently paid to the Illinois Municipal Retirement Fund and Social Security Administration. 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. 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. Village of Buffalo Grove 40 2013 Adopted Budget 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 Village of Buffalo Grove 41 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 42 2013 Adopted Budget Budget in Brief The Village of Buffalo Grove embraces a fiscally-conservative and forward-looking approach to budgeting for the operations of municipal government. This approach is coupled with the service-delivery expectations of the Village’s core customers – residents and businesses – and its extended customers – visitors, regional entities and other units of government. Each year, the Village determines its level of service, strategic goals and expectations and staffing levels based upon 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, information technology, building inspections, urban planning-zoning, golf operations and community event support. Additional non-core services are provided by others through regional partnerships or commissions, including the supply of potable water and dispatch services, 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 2013, the Village’s proposed budget is balanced and does not contemplate the implementation of new taxes. There is one new fee that will be imposed and is budgeted as a rental inspection fee. The property tax levy will increase by approximately 1.5 percent for the 2012 levy, payable 2013. 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 tax levies for the years 2011, 2012 and 2013 (proposed) for the Cook and Lake County portions of the Village. The basis for developing the overall budget relies upon the initial forecast of anticipated revenues derived from taxes, fees, licenses, intergovernmental revenue, fines, investment proceeds and interfund transfers. The following table depicts total revenues by category for all funds for the years 2011, 2012 and 2013 (proposed). $0 $5,000,000 $10,000,000 $15,000,000 2011 2012 2013 Total Gross Tax Levy Cook County Lake County Village of Buffalo Grove 43 2013 Adopted Budget Revenues by Category The total revenue budget for 2013 is $61,273,057. This budget is a 4.5 percent decrease over the 2012 estimated actual and 4.4 percent more than the 2011 actual. The spike in revenue in 2012 as compared to the 2013 estimated actual is the result of a $6 million debt issuance in 2012. Account Category FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Property Taxes $14,458,248 $14,259,270 $14,365,866 Other Taxes-State $8,927,511 $9,415,493 $9,842,485 Other Taxes-Local $9,280,326 $9,117,562 $9,072,517 Business Licenses $146,903 $144,175 $144,175 Liquor Licenses $125,070 $127,100 $127,100 Animal Licenses $8,166 $8,820 $8,820 Building Revenue & Fees $849,908 $710,408 $684,307 Intergovernmental Revenue-Local $266,085 $260,775 $267,930 Sales of Water $7,733,278 $7,637,880 $9,018,250 Golf Course Fees $2,175,418 $2,326,425 $2,409,450 Investment Revenue $2,809,597 $2,568,620 $2,510,170 Fines & Fees-Police & Fire $1,562,477 $1,431,725 $1,419,750 Operating Transfers $6,478,945 $6,981,181 $6,077,790 All Other Revenue $3,812,760 $9,201,404 $5,324,447 Grand Total - All Fund Revenue $58,634,692 $64,190,838 $61,273,057 Summary of Revenues by Source - All Funds 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 rules 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 and pension contributions made by sworn police officers and firefighters. Description General IMRF Parking Lot Motor Fuel Facilities Development Debt Service Capital Projects Facilities Capital Projects Streets Property Tax $11,826,377 $1,600,793 $938,696 Other Taxes $17,915,002 $1,000,000 Licensing $280,095 Charges for Service $913,737 Investment Revenue $103,300 $50 $100 Fines and Fees $1,261,750 $158,000 Operating Transfers $765,000 $400,000 $586,097 All Other Revenue $944,290 $1,320 $187,582 $1,000,000 FY 2013 Budget $34,009,551 $1,600,843 $159,320 $1,187,582 $1,338,696 $1,586,097 $100 FY 2012 Budget $33,507,100 $1,566,918 $163,870 $1,782,032 $1,138,756 $412,013 $734,933 Village of Buffalo Grove 44 2013 Adopted Budget Revenues by Source – All Funds Summary of Revenues by Source - All Funds continued Description Water & Sewer Arboretum Golf Course Buffalo Grove Golf Course Refuse Police Pension Firefighters Pension All Funds Property Tax $14,365,866 Other Taxes $18,915,002 Licensing $280,095 Charges for Service $9,056,750 $1,198,250 $1,211,200 $12,379,937 Investment Revenue $25,450 $1,236,000 $1,145,270 $2,510,170 Fines and Fees $1,419,750 Operating Transfers $24,060 $2,198,690 $2,103,943 $6,077,790 All Other Revenue $1,048,706 $1,041,217 $589,102 $512,230 $5,324,447 FY 2013 Budget $10,130,906 $1,222,310 $1,211,200 $1,041,217 $4,023,792 $3,761,443 $61,273,057 FY 2012 Budget $8,118,786 $1,241,806 $1,259,700 $1,039,387 $4,314,314 $3,891,862 $59,171,477 Property Tax 23% Other Taxes 31% Licensing 1% Charges for Service 20% Investment Revenue 4% Fines and Fees 2% Operating Transfers 10% All Other Revenue 9% Village of Buffalo Grove 45 2013 Adopted Budget Revenues by Source Summarized - All Funds Summary by Funds General Special Revenue Capital Projects Debt Service Enterprise Trust & Agency Total Property Tax $11,826,377 $1,600,793 $938,696 $14,365,866 Other Taxes $17,915,002 $1,000,000 $18,915,002 Licensing $280,095 $280,095 Charges for Service $913,737 $11,466,200 $12,379,937 Investment Revenue $103,300 $50 $100 $25,450 $2,381,270 $2,510,170 Fines and Fees $1,261,750 $158,000 $1,419,750 Operating Transfers $765,000 $586,097 $400,000 $24,060 $4,302,633 $6,077,790 All Other Revenue $944,290 $188,902 $1,000,000 $1,048,706 $1,101,332 $5,324,447 FY 2013 Budget $34,009,551 $2,947,745 $1,586,197 $1,338,696 $12,564,416 $8,826,452 $61,273,057 FY 2012 Budget $33,507,100 $3,512,820 $1,146,946 $1,138,756 $11,659,679 $8,206,176 $59,171,477 Total Revenues by Fund Fund Fund # FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2013 Budget % of Prior Year Budget Corporate 100 $34,409,488 $33,556,657 $33,507,100 $34,009,551 101.50% Illinois Municipal Retirement 110 $1,586,066 $1,567,758 $1,566,918 $1,600,843 102.17% Parking Lot 120 $151,901 $159,222 $163,870 $159,320 97.22% Motor Fuel Tax 130 $2,280,045 $1,863,813 $1,782,032 $1,187,582 66.64% Capital Projects - Facilities 150 $3,200,900 $388,692 $412,013 $1,586,097 384.96% Capital Projects - Streets 160 $765 $158,481 $734,933 $100 0.01% Facilities Dev Debt Service 140 $1,007,896 $1,318,329 $1,138,756 $1,338,696 117.56% Police Pension 220 $6,045,090 $5,024,859 $4,314,314 $4,023,792 93.27% Fire Pension 230 $4,915,608 $3,164,159 $3,891,862 $3,761,443 96.65% Water & Sewer 170 $9,174,861 $7,868,903 $8,118,786 $10,130,906 124.78% Buffalo Grove Golf Course 180 $1,375,231 $1,262,041 $1,259,700 $1,211,200 96.15% Arboretum Golf Course 190 $1,380,562 $1,264,906 $1,241,806 $1,222,310 98.43% Refuse Service 200 $966,537 $1,036,872 $1,039,387 $1,041,217 100.18% Total $66,494,950 $58,634,692 $59,171,477 $61,273,057 100.18% Village of Buffalo Grove 46 2013 Adopted Budget 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, and interfund transfers. As a service provider, the majority of the Village’s total budget (47.8 percent) is apportioned to Personnel Services and Benefits. Included within those categories are wages, health insurance, training/education, and pension contributions. Thus, a great deal of effort is expended in managing collective bargaining activities, wage and compensation programs and employee benefits as a core cost containment strategy. The following table depicts total expenses by category for all funds for the years 2011, 2012 and 2013 (proposed). Account Category FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 21,191,829 21,064,869 21,062,163 Personal Benefits 8,722,761 9,603,974 10,274,566 Operating Expenses 3,542,659 3,712,515 3,854,447 Insurance 702,383 603,855 660,390 Legal Services 305,331 331,031 389,650 Commission & Committees 83,029 81,049 86,550 Commodities 4,513,744 4,297,139 4,187,022 Maintenance & Repairs - Facilities 688,300 969,086 821,550 Maintenance & Repairs - Water & Sewer 63,858 79,900 96,200 Maintenance & Repairs - Other 145,391 147,775 156,242 Maintenance & Repairs - Vehicles 771,191 810,018 820,136 Capital Equipment 1,078,672 125,700 604,587 Capital Projects 3,051,675 4,119,025 8,714,549 Debt Service 1,732,508 1,580,858 1,815,464 Operating Transfer 6,478,945 6,958,664 6,079,301 All Other Expense 1,698,168 1,729,420 1,838,999 Grand Total All Fund Expense 54,770,444 56,214,878 61,461,816 The Village further analyzes and presents budgeted revenues and expenses by fund, including the general (main operating), enterprise, fiduciary and capital funds. The net increase in spending from the 2012 estimated actual versus the 2013 budget is due to expenditures related to the street maintenance program and Ash Tree replacements. Village of Buffalo Grove 47 2013 Adopted Budget Summary of Expenditures by Source - All Funds The following chart provides a summary of expenditures by source. Approximately 48 percent of all expenditures are allocated to personal services. Operating transfers represent the next largest percentage of the total Village budget at 9.9 percent. The transfer of property taxes accounted for within the General Fund and transferred to the Police and Firefighter Pension Funds represent nearly 70 percent of the 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. In 2013, it is anticipated that $9.3 million in capital projects and equipment acquisitions are scheduled. Significant projects include the largest annual street maintenance program funded by the issuance of the 2012 General Obligation Bonds, the first year’s efforts to remove and replace Emerald Ash Borer infested trees, and system improvements for water, sewer, and drainage utilities. The improvements include replacing sections of water main and storm sewer main and providing capacity and redundancy to sewer lift stations. Several technology enhancements are budgeted that will improve enterprise document management and strengthen connectivity of wireless delivery. The debt service obligations paid through the Facilities Development Debt Service Fund and the Water and Sewer Fund, for financial obligations to the Northwest Water Commission, total $1,815,464 in 2013. Summary of Expenditures by Source - All Funds Description Personal Services & Benefits Operating Expenses Legal Services Commodities Maintenance & Repairs General Fund 23,040,085 1,852,439 389,650 285,222 1,352,976 Illinois Municipal Retirement 1,586,750 Parking Lot 13,395 135,518 16,620 2,500 Motor Fuel Tax Total Special Revenue Funds 1,600,145 135,518 16,620 2,500 Capital Equipment Capital Projects Total Capital Projects Funds Debt Service Fund Police Pension 2,247,015 Fire Pension 1,561,069 Total Fiduciary Funds 3,808,084 Water & Sewer 1,399,397 1,544,290 3,594,680 318,652 Buffalo Grove Golf Course 735,608 144,100 130,000 127,000 Arboretum Golf Course 753,410 178,100 160,500 93,000 Refuse Service Total Enterprise Funds 2,888,415 1,866,490 3,885,180 538,652 All Funds 31,336,729 3,854,447 389,650 4,187,022 1,894,128 Village of Buffalo Grove 48 2013 Adopted Budget 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 759,438 5,110,241 1,199,864 33,989,915 Illinois Municipal Retirement 1,586,750 Parking Lot 200 168,233 Motor Fuel Tax 4,750,000 4,750,000 Total Special Revenue Funds 4,750,000 200 6,504,983 Capital Projects - Facilities 1,586,097 1,586,097 Capital Projects - Streets 100,452 100,452 Total Capital Projects Funds 1,686,549 1,686,549 Debt Service Fund 1,342,000 1,342,000 Police Pension 142,000 2,389,015 Fire Pension 113,000 1,674,069 Total Fiduciary Funds 255,000 4,063,084 Water & Sewer 2,058,149 473,464 945,000 10,507,622 Buffalo Grove Golf Course 39,000 24,060 500 1,211,068 Arboretum Golf Course 26,000 500 1,222,310 Refuse Service 934,285 934,285 Total Enterprise Funds 2,123,149 473,464 969,060 935,285 13,875,285 All Funds 9,319,136 1,815,464 6,079,301 1,838,999 61,461,816 General 55% Enterprise 22% Fiduciary 7% Capital Improvement 3% Special Revenue 11% Debt Service 2% Village of Buffalo Grove 49 2013 Adopted Budget Total Expenditures by Fund and by Category The chart below provides expenditure summary for all thirteen Village funds and further divides those fund totals into expenditures by category. The total budget for all Village expenditures in 2013 is $61,461,816. That total is 5.4 percent more than the 2012 budget and 12.2 percent more than what was spent in 2011. Fifty-four 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 and public works. By F u n d Fund Fund # FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2013 Budget % of Prior Year Budget General 100 $33,867,665 $33,878,147 $33,434,650 $33,989,915 101.66% Illinois Municipal Retirement 110 $1,495,882 $1,469,845 $1,530,321 $1,586,750 103.69% Parking Lot 120 $137,910 $158,428 $163,715 $168,233 102.76% Motor Fuel Tax 130 $1,512,379 $1,259,292 $2,300,000 $4,750,000 206.52% Facilities Dev Debt Service 140 $1,174,197 $1,303,255 $1,140,570 $1,342,000 117.66% Capital Projects - Facilities 150 $2,497,184 $376,553 $412,013 $1,586,097 384.96% Capital Projects- Streets 160 $319,003 $1,134,372 $1,048,247 $100,452 9.58% Water & Sewer 170 $9,388,310 $8,661,125 $11,364,463 $10,507,622 92.46% Buffalo Grove Golf Course 180 $1,287,448 $1,260,112 $1,256,244 $1,211,068 96.40% Arboretum Golf Course 190 $1,234,474 $1,276,359 $1,241,806 $1,222,310 98.43% Refuse Service 200 $936,197 $935,365 $969,321 $934,285 96.39% Police Pension 220 $1,691,764 $1,967,366 $2,140,663 $2,389,015 111.60% Firefighter Pension 230 $641,333 $1,090,225 $1,319,504 $1,674,069 126.87% Grand Total $56,183,746 $54,770,444 $58,321,517 $61,461,816 105.38% By C a t e g o r y Personal Services $29,024,511 $29,914,590 $30,645,984 $31,336,729 102.25% Operating Expenses $3,499,502 $3,542,659 $3,757,466 $3,854,447 102.58% Commodities $5,759,731 $4,513,744 $4,833,764 $4,187,022 86.62% Maintenance & Repairs $1,499,507 $1,668,740 $2,067,309 $1,894,128 91.62% Capital Equipment & Projects $5,580,252 $4,130,347 $6,016,836 $9,319,136 154.88% Debt Service $1,604,896 $1,732,508 $1,580,733 $1,815,464 114.85% Operating Transfers $6,630,300 $6,478,945 $6,724,602 $6,079,301 90.40% All Other Expenses $2,585,047 $2,788,911 $2,694,823 $2,975,589 110.42% Grand Total $56,183,746 $54,770,444 $58,321,517 $61,461,816 105.38% Village of Buffalo Grove 50 2013 Adopted Budget Summary of Revenue and Expenditures by Category Account Category FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Property Taxes $14,458,248 $14,259,270 $14,365,866 Other Taxes-State $8,927,511 $9,415,493 $9,842,485 Other Taxes-Local $9,280,326 $9,117,562 $9,072,517 Business Licenses $146,903 $144,175 $144,175 Liquor Licenses $125,070 $127,100 $127,100 Animal Licenses $8,166 $8,820 $8,820 Building Revenue & Fees $849,908 $710,408 $684,307 Intergovernmental Revenue-Local $266,085 $260,775 $267,930 Sales of Water $7,733,278 $7,637,880 $9,018,250 Golf Course Fees $2,175,418 $2,326,425 $2,409,450 Investment Revenue $2,809,597 $2,568,620 $2,510,170 Fines & Fees-Police & Fire $1,562,477 $1,431,725 $1,419,750 Operating Transfers $6,478,945 $6,981,181 $6,077,790 All Other Revenue $3,812,760 $9,201,404 $5,324,447 Grand Total - All Fund Revenue $58,634,692 $64,190,838 $61,273,057 Account Category FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 21,191,829 21,064,869 21,062,163 Personal Benefits 8,722,761 9,603,974 10,274,566 Operating Expenses 3,542,659 3,712,515 3,854,447 Insurance 702,383 603,855 660,390 Legal Services 305,331 331,031 389,650 Commission & Committees 83,029 81,049 86,550 Commodities 4,513,744 4,297,139 4,187,022 Maintenance & Repairs - Facilities 688,300 969,086 821,550 Maintenance & Repairs - Water & Sewer 63,858 79,900 96,200 Maintenance & Repairs - Other 145,391 147,775 156,242 Maintenance & Repairs - Vehicles 771,191 810,018 820,136 Capital Equipment 1,078,672 125,700 604,587 Capital Projects 3,051,675 4,119,025 8,714,549 Debt Service 1,732,508 1,580,858 1,815,464 Operating Transfer 6,478,945 6,958,664 6,079,301 All Other Expense 1,698,168 1,729,420 1,838,999 Grand Total – All Fund Expense 54,770,444 56,214,878 61,461,816 Village of Buffalo Grove 51 2013 Adopted Budget 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 downward pressure on key revenue sources. The reduced personnel levels in recent years as well as the proposed reduced staffing for 2013 is the direct result of targeted position reductions accomplished through attrition and the offering of the Village’s Voluntary Separation Incentive (VSI) program to encourage reductions in force. Village administration has employed a two- pronged approach to reduce personnel costs and benefits upon the separation of employees by 1) reprogramming or eliminating positions where possible and 2) implementing revised pay and benefit structures for positions filled by replacement. In terms of revising pay and benefit structures, the Village has taken aggressive steps to provide for long-term cost reductions, including the implementation of a Tier II wage for new hires, increasing the employee contribution to health insurance premiums from 10 to 15 percent of premiums over a five-year period and transferring the Village’s self-funded healthcare program to the Intergovernmental Personnel Benefits Cooperative (IPBC). Additional information concerning the healthcare benefit plan, premium structure and total cost may be reviewed in Section C: Human Resources. The net effect of the Village’s personnel cost containment strategy has significantly reduced the pressure on overall operating costs by: 1. Reducing 2013 personnel expenses by approximately $610,000 from 2012; and 2. Maintaining an overall increase to medical and dental premiums of less than 5% for 2013. which is lower level than the national long term average of 5.56%. For 2013, the Village proposes a full-time staff complement of 224 full-time personnel and 87 part-time personnel. Although successful in 2011 and 2012, the VSI program will not be offered in 2013, as the benefit of the program may lose its impact if viewed as an annual offering. The following table depicts total employees by department for 2011, 2012 and 2013. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Office of the Village Manager/Administration 5 4 6 3 6 3 Building & Zoning 9 2 9 2 9 2 Finance & General Service 7 2 7 1 8 1 Fire Services 67 0 65 1 61 1 Golf Operations 8 52 8 52 8 52 Information Technology 3 1 3 1 3 1 Police Services 84 15 79 15 77 14 Public Works/Engineering 51 18 51 17 52 13 Total 234 94 228 92 224 87 Full & Part-Time Grand Total 328 320 311 Village of Buffalo Grove 52 2013 Adopted Budget Strategic Planning 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 a consultant to assist in the facilitation of the process. The majority of the plan coordination and development was done internally by Village staff. The basic goal of the strategic planning process was to identify and assess organizational strengths, weaknesses, opportunities and threats. This was achieved through holding 26 different meetings with employee groups representative of all Village departments and staff. That input was used as a tool in identifying the strategic priorities for the community and the organization. Five strategic planning priorities were identified working with the Village Board. They are: 1. Service Optimization 2. Organizational Culture 3. Economic Development 4. Revenue Growth 5. Infrastructure Sustainability A detailed description of each priority is provided. As such, the first strategic priority is service optimization. Based on the needs and expectations of the community, core services are prioritized. Optimal services are provided by supporting an adaptive and efficient workforce. Organizational culture is the second strategic priority. With this priority, it is important to create and maintain an environment that engages and empowers all employees in the mission of the Village. The development of human capital and resources is encouraged. The third strategic priority is economic development. The quality of life in the community is maintained and enhanced through an on-going assessment, public and private partnerships and by leveraging resources to meet community objectives. An inviting environment is created for doing business in the community through targeted communication and marketing methods. These are consistent with the needs and values of the Village. Revenue growth is the fourth strategic priority. A positive financial position is maintained with a long term perspective by diversifying revenue sources and aligning fee structures to adequately reflect service demands. In addition, the Village’s reliance on property and state shared taxes is reduced while ensuring revenues adequately fund services and infrastructure needs. The fifth and final strategic priority is infrastructure sustainability. With this priority, reliable and high quality infrastructure is assessed and maintained. This includes Village buildings, streets, utilities, information technology, vehicle fleet and other assets necessary to maintain service levels. The Village needs to plan for the financial resources necessary to maintain current infrastructure, upgrade for efficiency or enhanced capabilities and identify for the future infrastructure needs of the community. After the strategic priorities were established, key performance indicators were identified. Strategic initiatives and actions were also identified in order to achieve the strategic priorities. Financial and Non-Financial Goals The strategic goals as defined by the core values include both financial and non-financial goals. At the organizational level, strategies are defined with respect to internal and external customers, as well as the level of service, impact on financial resources and long-term community priorities. The following financial goals are contemplated for 2013: Village of Buffalo Grove 53 2013 Adopted Budget 1. Review methods for the diversification of the Village’s revenue sources. 2. Revise the Village’s fee and fine structure. 3. Implement a technology platform that reflects the input and supports the needs of the users. 4. Review Village fleet, vehicles and equipment to determine need and future replacement necessity. 5. Create a funding strategy for capital reserve funding. The Village’s non-financial goals identified for 2013 are follows: 1. Foster an innovative culture of collaboration through the establishment of a Village-wide communication plan. 2. Focus attention on the Village work force in the areas of leadership development and personal growth and balance. 3. Establish a Village-wide Comprehensive Training Program. 4. Inventory and prioritize all Village services and categorize as core or non-core. 5. Implement business retention and expansion programming. Each of these processes is driven by the need to provide or improve a level of service in accordance with Village Board direction, customer feedback and/or long-term community priorities. Asset Management Goals In addition to the non-financial goals, each year the Village updates and approves its five-year Capital Improvement Program. A copy of the plan may be reviewed in Section 6: Capital Improvement Program. Village of Buffalo Grove 54 2013 Adopted Budget Key Performance Indicators The Strategic Priorities are outlined in Section Two – Organization and Services. Each of the five Village Strategic Priorities is further defined by Key Performance Indicators (KPIs) which are listed below. In Section Five – each department has assignment toward goals that match up with the key performance indicators. It is important to note that each of the priorities is integrated. A prioritization of all Village-provided services will be formalized in an adopted policy. An enterprise-wide strategy for establishing an adaptive, effective workforce that integrates interdisciplinary approaches will be put in place. A technology platform is in place that supports the needs and reflects the input of users. Enhanced attention to the Village workforce in the areas of leadership development and personal growth and balance. Foster an innovative culture of collaboration. Diversification of revenue sources. Corporate fund reserves will increase to 30% by January 1, 2014 and to 35% by January 1, 2016. Increase revenues. Implement new business retention and expansion programming. Enhance land based active development and re-development planning. Be economic development friendly by educating, streamlining and simplifying administrative processes. Fleet and major equipment planning are incorporated into capital forecasts and the annual budget program. Funding strategy for all capital reserve programming Enhanced, long- term funding strategy for utility (water, sanitary sewer, storm sewer) and street systems. Ke y P e r f o r m a n c e I n d i c a t o r s Strategic Priorities Village of Buffalo Grove 55 2013 Adopted Budget 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 factions that impact, or may impact, the collection of revenue. Evaluating the 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, employment, housing starts, vehicle sales, interest rates, and manufacturing activity. Inflation – As inflation goes up, the cost of goods sold go up, increasing retail sales tax revenue. As prices rise, so will business income tax receipts. Conversely, the Village will have to pay more for goods and services. Employment – Retail and vehicle sales tend to have inverse relationships with the unemployment rate. Sales tend to move in the opposite direction of the unemployment rate. Chronic unemployment often spills over into the residential real estate market resulting in lost real estate transfer tax revenue. Housing starts - This indicator provides a sense of the overall demand for housing, which can be indicative of local housing activity. Data maintained by local realtor groups is useful in projecting the future of market recoveries. Vehicle sales – sales and use tax revenues tend to fall with vehicle sales, which are heavily dependent upon both employment and interest rates. However, if increases in new vehicles are expected to reduce the value of used vehicles, the sales and use tax base can actually decline if the depreciation of used vehicles is not equally offset by the value of new vehicles. Interest rates – Interest rate impact the Village’s revenues in several ways. First, invest ment income will be affected by interest rates. Second, the availability and cost of capital directly affects business expansion and retail purchases. As credit is extended and/or rates are lowered, revolving purchases may increase, thereby increasing development plans and retail sales and, by extension, sales tax and business licenses revenues. Manufacturing activity – If a Village has a large manufacturing sector, the ISM (Institute of Supply Management Index) becomes a significant factor in revenue analysis and forecasting. Manufacturers respond to the demand for their products by increasing production, building up inventories to meet the demand. The increased production often requires new workers which lowers unemployment figures and can stimulate the local economy. Property Tax Property taxes (net of Road and Bridge taxes) are anticipated to be approximately $14.7 million and will be levied in 2012. This is referred to as the 2012 property tax levy, payable in 2013. Property taxes account for about 24 percent of all budgeted revenues. 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 (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 1.5 percent. The Village is sensitive to current economic conditions and the shifting tax burden to residential properties and is recommending a Corporate levy that will not exceed 1.5 percent. Village of Buffalo Grove 56 2013 Adopted Budget Property tax levies for Police and Fire pensions are based on an independent actuarial analysis of both funds’ normal cost as well as to provide an amount necessary to amortize a portion of the unfunded actuarial liability. The levies are 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 IMRF. The amount 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 2012 is $1,321,300. 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 2012 property tax levy, 76.92 percent of all assessed valuation is located in Lake County and 23.08 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 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Components of Tax Levy - Truth in Taxation Net of Debt Service Fire Pension Police Pension IMRF/FICA Corporate 0 500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Equalized Assessed Valuation Cook County Total EAV Lake Couty Village of Buffalo Grove 57 2013 Adopted Budget Falling market values as well as vigorous individual assessed value protestations, leads to an estimated tax rate of $0.87 per $100 of equalized assessed valuation for the 2012 tax levy (extended in 2013). The chart below provided a history of tax rate weighted for both counties. 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 realit y, property values do not change in this manner. In Cook County, commercial property values in aggregate have dropped quicker than residential properties resulting in a shift in tax burden. Sales Tax The Village receives one cent ($0.01) for each dollar of retail sales. The largest sales tax generators are grocery stores (Dominick’s and Jewel/Osco) and restaurants whose sales are not as heavily influenced by economic conditions. Market conditions do, however, impact sales tax as neighboring communities have value-oriented retailers that have expanded product offerings that include food and grocery sales. The impact of the recession continues to affect all retailers as revenues are down 26 percent from the pre- recessionary peak in 2006. That year was the last year there was growth in revenue above and beyond inflation. Largely contributing to the precipitous decline was the loss of three auto dealerships. Those parcels remain in private ownership and Village staff continues to work closely with property representatives to regain occupancy. These properties are significant strategic parcels along the Dundee Road corridor. Properties along Milwaukee Avenue and Lake Cook Road represent strong opportunities to build retail square footage within the Village. The FY 2012 budget anticipated $4.38 million in sales tax revenue. The estimated actual will be approximately .5 percent more or $4.4 million. For 2013, the budget is anticipated to be $4.53 million. Growth is based on three percent inflation of the 2012 estimated actual amount. 0.0000 0.1000 0.2000 0.3000 0.4000 0.5000 0.6000 0.7000 0.8000 0.9000 1.0000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 VILLAGE OF BUFFALO GROVE PROPERTY TAX EXTENSION RATES Cook County Lake County Village Weighted Village of Buffalo Grove 58 2013 Adopted Budget The Village is still concerned about the loss of market share in the food/grocery business to other municipalities and the continuing impact of untaxed internet sales and the disparate impact on brick and mortar businesses. The following chart summarizes sales tax collections over the last ten years. 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 mirror performance of the above referenced municipal 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 the Motor Fuel Tax Fund to supplement state shared motor fuel tax remittances to fund the annual street maintenance program. Due to the infusion of bond proceeds into the Motor Fuel Tax Program the transfer was suspended for FY 2013. In 2013, revenues are anticipated to increase by three percent from the 2012 estimated actual amount of $3.04 million to $3.13 million. The assumptions for both the municipal and home rule sales tax do not include any new sales tax generators to locate within the Village during 2013. The following is a ten year review of home rule sales tax collections. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 est.2013 pro. Sales Tax History $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 est 2013 pro. Home Rule Sales Tax History Village of Buffalo Grove 59 2013 Adopted Budget 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 118 restaurants/businesses that generate this tax. This revenue has held constant as a large percentage of the dining options within the Village are value oriented. The estimated revenue for 2012 is 2.6 below the budget target and 2013 is forecast to grow three percent to $741,600. Growth is mostly due to inflation although the revenue will be bolstered by the addition of three new businesses near Buffalo Grove High School that should generate significant sales volume. This tax was enacted in 2008. Illinois Income & Use Tax The Village receives a pro rata allocation of Income Tax from the State of Illinois based on six percent of net personal and corporate taxes. There is a perennial concern that the Illinois legislature will reduce the amount remitted to municipalities to address state budget deficits. The Use Tax is a form of sales tax designed to distribute the tax burden fairly among consumers and assures fair competition between in-state and out-of-state businesses. The tax is owed on goods purchased out of Illinois and brought into the state. Based upon data provided by the Illinois Municipal League, the FY 2013 Income Tax budget is $3.4 million ($83.50 per capita) and Use is $.65 million ($15.80 per capita). Collectively, Income and Use tax are up 5.2 percent against budget and are projected to increase by 7.8% in FY 2013. Income and Use Tax peaked in FY 2008 at $109.31 per capita just prior to the collapse of the economy and the effect of high unemployment on this revenue source. Unemployment in the state of Illinois is beginning to recover to pre-recessionary levels. The state unemployment rate is 8.8 percent (September 2012) compared to 10.1 percent one year ago. Sectors still adding jobs include education, healthcare and manufacturing. The Village of Buffalo Grove’s unemployment statistics have consistently beat the national and state averages, with a September 2012 rate of 7.2 percent. 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 $1.62 million for 2012 and the budget is generally unchanged for 2013. There are two full years of data and trend information will now be used for future revenue estimates. Utility taxes for natural gas $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 est.2013 pro. Income & Use Tax Revenue History Village of Buffalo Grove 60 2013 Adopted Budget are levied at a rate of $0.05 per therm. The estimated amount for 2012 is $.9 million missing budget by 12 percent. The winter of 2011-2012 was uncharacteristically mild resulting in a significant drop in therms used. The budget was reduced to $.9 million in 2013. Since both electricity and natural gas use taxes are based on unit pricing there is no fluctuation 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 for more efficient building technologies and appliances will be a constant pressure downward on the collection of this revenue. Telecommunications Tax This tax 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 purpose 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 16 percent from the peak in 2007. Voice over Internet Protocol (VoIP) phone services such as those provided by Xfinity/Comcast and Vonage are subject to this taxation. There was a slight uptick in revenue in 2012 due to an accounting error caught by the Illinois Department of Revenue that resulted in a one time additional remittance for all municipalities that levy this tax. As a result, revenues increased 4.2 percent against the 2012 budget and then drop to $1.9 million (8 percent decrease) in 2013. Listed in the graph below is a ten year trend of telecommunications tax collections. 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 60 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 are increasing. The Village’s home resale inventories have decreased sharply, with a 13 percent decrease over the last year. Distressed properties such as foreclosures and short sales increased as a percentage of the total market in October 2012. The median number of days on the market is 90 versus 112 a year ago. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 pro.2013 est. Telecommunication Tax History Village of Buffalo Grove 61 2013 Adopted 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 2013, there is no anticipated new development projected. Revenue is anticipated to be collected on improvements to existing structures. Total building revenues and fees are estimated to be $.6 million, an increase of 13 percent over 2012 revenues but a 26.5 percent decrease from 2012. The most significant project targeted for 2012 construction was the Riverwalk North apartment building. That project did not move forward in 2012 and has been removed from the budget in 2013. One new source of revenue was adopted by the Village Board in 2012, for a 2013 implementation date. Rental inspection fees are projected to add $75,000 in revenue. This revenue is generated on the permitting and inspections of rental properties. As more rental properties are identified this revenue should increase. Motor Fuel Tax For FY 2013, 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. That amount represents a one percent increase from the 2012 budget and no increase against the estimated actual revenue for 2012. Combined with those taxes, in 2012, a home rule sales tax transfer of $.6 million and the Village’s allocation of the Illinois Jobs Now capital grant ($187,582) for MFT expenditures. In 2013, the home rule sales tax transfer will be suspended due to the $6 million debt issue for the annual street maintenance program. The transfer will resume in 2014. Elevated fuel costs, alternative energy, technological advancements that allow for more employees to telecommute, will continue to impact growth in this revenue. These revenues are used to fund the annual street maintenance program. Water and Sewer Fees Total fees collected for the sale of water combined with revenue collected on behalf of Lake County Public Works for 2013 is nine million. 35 percent of the revenue is billed by the Village and then remitted directly to Lake County. Lake County owns and operates the south east region sewer treatment plant. The Village bills the services on their behalf to reduce overhead and administrative costs. The anticipated revenue for 2012 is five percent less than the budget. The lower than expected revenues are due to a drop in fees collected for Lake County sanitary sewer service associated with the summer sewer credit program. $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 est.2013 pro. Motor Fuel Tax Revenues Village of Buffalo Grove 62 2013 Adopted Budget The decline in water usage has appeared to stabilize over the last two years. The decreased demand was due both to weather and economic decisions to irrigate, eco-friendly landscape designs, energy efficient appliances and a decrease in average household size. It is estimated that the total amount of water consumed by the village will remain unchanged in 2013. The chart below illustrates the average monthly water consumption of all classes of users (residential, commercial and industrial). A water rate increase was proposed in 2012 for water use beginning 2013. The basis behind the water rate increase was presented in a twenty year Water Fund proforma analysis. The purpose behind the analysis was to design a fee structure that would adequately fund a utility system with a $250 million replacement value. The Village has struggled to offset operational expenses and fund capital improvement reserves with the current rate structure. The Village had a twenty-three year rate freeze from 1984-2007. During those years, the Water and Sewer Fund was able to amass a working cash balance, primarily through building fees 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 2007 the fund has spent expend approximately $6 million through 2012 to address capital maintenance and improvement projects. The rate increases approved are: Combined Water/Sewer Rate per 1,000 Gallons 2012 $3 2013 $4.05 2014 $5.26 2015 4% increase thereafter The 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 allocation of the proposed rate to address operating expenses, capital, and infrastructure reserves. 0 2,000 4,000 6,000 8,000 10,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average Monthly Water Consumption Village of Buffalo Grove 63 2013 Adopted Budget Lake County sanitary sewer fees have decreased 13 percent from the 2012 budget and are expected to be unchanged entering 2013. The reason for the significant drop in revenue is due to a change in the methodology in billing. The Village has the option to bill customers a flat rate or based on consumption. For 2011, the Village moved to consumption billing to promote equity and water conservation. Golf Course Fees Total golf course fees at the Arboretum Golf Club are expected to decrease 2.3 percent in 2013 as measured against the 2012 budget and increase less than 1 percent from the 2012 expected revenue. There is not any anticipated growth in the number of total paid rounds in 2013. The golf industry remains challenged by the downturn in the economy as there is much competition for discretionary income. The state of the industry is challenging because the region is saturated with golf courses without corresponding increases in the number of players. During this down economic period, per-round revenue is strained as customers are shopping for discounts to play, bypassing the power carts, and not spending additional dollars in the pro shop. There are no daily rate increases proposed in 2013. Total golf course fees at the Buffalo Grove Golf Club are down 7.3 percent against the current budget and are estimated to decrease by 12.1 percent against estimated actual for 2012. Similar economic conditions impact the Buffalo Grove Golf Club in the same manner as the Arboretum, but weather factors as a more significant obstacle for the Buffalo Grove Golf Course. A large percentage of the course is developed within a flood plain and it performs that role well during strong rain events, although the course may be closed for a period of hours to days due to severe rainfall. FY 2012 was an excellent year from a weather standpoint as there were few significant rain events. GPS revenues were also eliminated in 2013 causing a 2 percent in the decline in the year-over-year revenue. Investment Revenues The Village’s investments are guided by three investment policies including the portfolios of the Police Pension Fund, Firefighter Pension Funds, and all other funds. Total revenue is expected to be $2,510,170. All funds other than pension funds have durations less than three years with an expected yield of .5 percent. Both pension funds have interest rate targets of seven percent for their actuarial assumption. The pension funds are the only Village funds that purchase equity investments. The Village maintains an investment policy dictating how all funds, except for the three pension funds, are to be invested. 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. 3.02 3.75 4.15 4.16 4.46 4.58 4.70 4.82 4.95 1.03 1.52 1.03 1.53 1.04 1.56 1.05 1.59 1.32 $0 $2 $4 $6 $8 2013 2014 2015 2016 2017 2018 2019 2020 2021 Expense Components of Water Rate FY 2013-2021 Operating & Transfers Capital Infrastructure Village of Buffalo Grove 64 2013 Adopted Budget 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 1.8 percent and .9 percent respectively. The levy for IMRF will increase by 2.2 percent. Employees contribute 9.91 percent of salary for police and 9.455 percent for firefighters. Employees contribute 4.5 percent of salary for IMRF. For FY 2012, the actuarial investment return assumption was lowered (for the locally administered pension funds – Police and Firefighters) from 7.5 percent to 7.0 percent to reflect the current investment environment. Over the last eight years, the Police Pension Fund’s portfolio yield is 4.49 percent while the Firefighter Pension Fund’s is 4.19 percent. 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 driven trending. There is one new source of revenue proposed in 2013 and one that is discontinued. The new source of revenue will be generated through the rental inspection program. Para mutuel tax, collected on the OTB wagering handle, is not budgeted in 2013 as the operator has left the Village. Village of Buffalo Grove 65 2013 Adopted Budget Expenditure Trends and Projections Personnel Services The primary mission of the Village of Buffalo Grove is to provide high quality services to the residents and those employed within its boundaries. To accomplish that purpose in 2013, 34.2 percent of all Village expenditures are allocated to salaries and wages, down 2.4 percent from 2012. 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 recession has been a catalyst in reevaluating the Village’s pay plan to better adapt to a stagnant economy. The implementation of a Tier II pay system combined with limited pay increases has allowed the Village to continue with expected service levels. The Voluntary Separation Incentive, spanning the 2011 and 2012 budgets, was the first step in rebalancing a percentage of the workforce into Tier II. 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 expires May 1, 2013. The police union was certified in 2012 and the first contract will be negotiated in 2013. The non-represented work force will receive a two percent general wage increase. Efforts will continue in 2013 to institute a merit based performance system. The period between 2007 and 2008 encompasses the change of the fiscal year from an April 30 year end to December 31. To make a annualized comparison, 2007 reflects the fiscal year end ed April 30, 2007. The column 2008 represents the calendar year ended December 31, 2008. Data from May 1, 2007 to December 31, 2007 is not part of the analysis. From a total budget perspective, resources allocated to wages have not increased (slight decrease) since 2008. This has been accomplished through minimal general wage increases, downsizing employee counts through attrition, and the implementation of Tier II wage structure. Personnel Benefits The Village of Buffalo Grove re-entered the Intergovernmental Profession Benefits Cooperative (IPBC) in 2012. The IPBC is a pooled benefits cooperative with approximately sixty-two member communities. From 2005-2011, the Village self insured its stand alone health program with limited success. In 2013, the total amount budgeted for health insurance is $4 million. The average increase of all levels of coverage is five percent that closely mirrors medical inflation but, that increase includes a 9 percent reserve funding mechanism. The year over year increase is 9.8 percent. Once the Village reestablishes an adequate reserve, a portion of that balance can be used to offset significant increases. The impact of the Voluntary Separation Incentive, while driving down wage costs, has the opposite effect on health insurance costs as most new employees elect family coverage. Most retirees were on a single or one plus one basis. $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 $22,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Wage Growth - All Funds Village of Buffalo Grove 66 2013 Adopted Budget The Village has been proactive in trying to contain medical costs. Those efforts will continue in 2013 with a 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 will increase one percent per year and conclude in 2016 with employees covering 15 percent of the premium. The 2013 contribution level will be 12 percent of the health premium. Commodities Approximately seven 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. 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 last winter season was mild resulting in a large inventory of salt for 2013. The budget line item has a corresponding decrease to reflect material on hand and not a change in levels of service. The expense in 2014 will return to reflect historic spending amounts. The Village purchases salt and other routine equipment through the Northwest Municipal Conference’s Joint Purchasing Cooperative. This cooperative creates economie s of scale and leverages buying power. In 2012, the Village began experimenting with Geo-melt to try and reduce the cost of the snow and ice control program. These efforts will continue in 2013. Capital Projects & Equipment Just over fifteen percent of all expenditures will address certain capital projects identified in the 2013 component of the 2013-2017 Capital Improvement Plan as shown in Section 6: Capital Improvement Budget Summary. 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. Capital equipment purchases are funded through the Reserve for Capital Replacement. Until 2009, all departments budgeted a transfer into the reserve. The primary purpose of the reserve was to fund equipment depreciation to ensure that when the asset needed to be replaced it was fully funded. By allocating a transfer to the reserve each year, the capital spending amount is smoothed out and not subject to spikes. Since 2009 the transfer has not been programmed due to financial constraints. The proposed 2013 budget will reinitiate this transfer (approximately $.4 million) in an effort to rebuild equipment funding levels. The Village aggressively recovers the salvage value of the retired asset through online auctions. - 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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Health Insurance Costs Village of Buffalo Grove 67 2013 Adopted Budget Two significant projects are programmed for 2013. The first project is the annual street maintenance program. This program has continued to be a top priority of the Village Board over the last two decades. 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 and a 20 percent transfer of Home Rule Sales Tax. In additional to the state shared funding, $6 million in general obligation bonds were issued to advance a back log of streets that are due for a surface overlay. The purpose of the increase in funding is to repair as many lane miles of pavement before routine maintenance escalates to a full roadway rebuild. A rebuild carries a cost about five or six times that of an overlay. The second significant project is the Village’s reforestation program. Over the next several years it is anticipated that approximately 6,300 Ash Trees will succumb to the Emerald Ash Borer. In 2013, the removal and replacement costs are estimated to be one million dollars. In anticipation of the magnitude of the project, the Village has been working to lock in both pricing on, and availability of, nursery stock. 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 2012 along with expenditure trend information. A reasonable estimation of expenditure is developed for 2013 and included within the line item budget. Debt Service Expenditures The Village currently has four bond issues outstanding as of January 1, 2013, all being General Obligation Bonds (Series 2012, Series 2010A, Series 2010B, and Series 2003). Bond descriptions and amortization schedules are listed within the Debt Profile of this section. The amount paid to the Northwest Water Commission to pay the Village’s percentage of the water system debt is included. Most Village debt service revenues are obtained through property tax. The Water and Sewer Fund provides a $180,000 operating transfer to abate a portion of the taxes attributed to the Public Service Center improvements. Enterprise Fund Expenses The Water and Sewer, Refuse, and Golf Funds are considered enterprise funds. Rate structures and user fees should be set at levels that are sufficient to pay for related expenses. Property tax subsidies are not used to balance enterprise fund operations. In 2013, there are no anticipated advances to any of the enterprise funds from the Corporate Fund. As noted, the Water and Sewer Fund will need a series of rate increases to provide sufficient operating revenues and capital reserves. The largest cost within the Water and Sewer Fund is for the wholesale cost of the water ($1.7 million) through the Northwest Water Commission and the pass through costs ($3.2 million) of Lake County sanitary sewer services. Within the two golf funds over half of the expenses are wage and benefit driven as much of the costs are to prepare the golf for daily play. Village of Buffalo Grove 68 2013 Adopted Budget 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 2013, debt service consists of $330,400 for Series 2003, $718,125 for Series 2010A, $88,263 for Series 2010B, and $184,513 for Series 2012. Total debt outstanding as of December 31, 2012 is $12.28 million. Below is a chart depicting the future principal and interest payments of all general obligation debt. 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, 2012, the Village’s ratio of General Obligation Bonded Debt to EAV was 0.78 percent with the addition of the $6 million issue in 2012. 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. 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 Debt Service Schedule by Fiscal Year Series 2003 Series 2010A Series 2010B Series 2012 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Ratio of General Obligation Debt to EAV Village of Buffalo Grove 69 2013 Adopted Budget Debt Service Schedules Overview The following summarizes the debt service obligations of the Village as of December 31, 2012. 2003 General Obligation Bonds Purpose: Proceeds used to complete street improvement projects identified in the FY 2003/2004 Capital Improvement Plan including: Dundee Road intersection lighting, Deerfield Parkway street improvement, and Illinois Route 22 street improvement. Maturity Date: December 30, 2013 Original Principal Amount: $2,600,000 Investment Rating: Moody's Investors Service: AAA Standard & Poor's AAA Principal Outstanding: $320,000 Interest: $ 10,400 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: $3,360,000 Interest: $ 469,525 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: $2,600,000 Interest: $ 731,073 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: $1,989,638 Village of Buffalo Grove 70 2013 Adopted Budget Debt Service Schedules Annual Payments - General Obligation Debt Principal Fiscal Year Series 2003 Series 2010A Series 2010B Series 2012 Total 2013 320,000 620,000 - - 940,000 2014 - 610,000 180,000 - 790,000 2015 - 325,000 185,000 - 510,000 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 320,000 3,360,000 2,600,000 6,000,000 12,280,000 Interest Fiscal Year Series 2003 Series 2010A Series 2010B Series 2012 Total 2013 10,400 98,125 88,263 184,513 381,300 2014 - 85,725 88,263 137,525 311,513 2015 - 73,525 83,763 137,525 294,813 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 10,400 469,525 731,073 1,989,638 3,200,635 Village of Buffalo Grove 71 2013 Adopted Budget 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. 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 2013 budget, with surplus (deficit) shown for each fund. Fund Fund Balance January 1, 2013 2013 Revenue 2013 Expenditures Excess of Revenue over Expenditures Fund Balance December 31, 2013 General Fund 9,571,895 34,009,551 (33,989,915) 19,636 9,591,531 Special Revenue Funds IMRF 126,316 1,600,843 (1,586,750) 14,093 140,409 Parking Lot 140,323 159,320 (168,233) (8,913) 131,410 Motor Fuel Tax 4,961,323 1,187,582 (4,750,000) (3,562,418) 1,398,905 Debt Service Fund Facilities Dev. Debt Service 12,543 1,338,696 (1,342,000) (3,304) 9,239 Capital Project Funds Facilities 58,081 1,586,097 (1,586,097) 58,081 Streets 100,540 100 (100,452) (100,352) 188 Enterprise Funds Water & Sewer 3,039,729 10,130,906 (10,507,622) (376,716) 2,663,013 Arboretum Golf Course (1,335) 1,222,310 (1,222,310) (1,335) Buffalo Grove Golf Course 2,066 1,211,200 (1,200,068) 132 2,198 Refuse Service 240,104 1,041,217 (934,285) 106,932 347,036 Trust & Agency Funds Police Pension 46,484,675 4,023,792 (2,389,015) 1,634,777 48,119,452 Firefighter Pension 37,572,789 3,761,443 (1,674,069) 2,087,374 39,660,163 Total All Funds 102,309,049 61,273,057 (61,461,816) (188,759) 102,120,290 There are six funds that are budgeted to have greater than a ten percent variance in fund balance during 2013. The first fund is IMRF. There is the potential for several retirements that will lessen the impact on the retirement funding for the year. Motor Fuel Tax has received $6 million in fund in 2012 that will be expended in 2013. Facility Development Debt Service Fund fund balance will decrease by 27 percent as debt service obligations are satisfied. The fund balance amount should ultimately be zero as the expense activity is funded by the General Fund. Capital Project Streets has a $100,352 decrease in fund balance allocated to capital improvements. Water and Sewer cash and investments will drop by $376,716 to fund several projects in the Capital Improvement Plan. The Refuse Fund is will generate $106,932 in surplus that will be used to moderate the next phased rate increase. The material difference in the ending fund balance reported in the 2012 Budget for the General Fund versus the starting balance reported in 2013 is due to the accounting of developer deposits in 2012 as fund balance. A better representation of available funds should not include those deposits. Village of Buffalo Grove 72 2013 Adopted Budget Section 5 General Fund Summary and Detail General Fund Revenue Office of the Village Manager Legislative Legal Services Information Technology/Emergency Management Finance and General Services Human Resources Fire Services Police Services Building and Zoning Public Works Management and Administration Engineering Services Building Services/Street Lighting Street Operations and Maintenance Non-Operating Transfers Village of Buffalo Grove 73 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 74 2013 Adopted Budget General Fund Revenue The General Fund Revenue Budget for 2013 is $34,009,551 representing a 1.50 percent increase over 2012 and a 1.68 percent increase over the 2012 estimated actual. Eighty-seven percent of the budget is comprised of property taxes, state shared taxes (sales tax and income tax), home-rule sales tax, telecommunications tax, and utility use taxes. For a more detailed description on revenues and assumptions refer to Section 4 Executive Overview. Village of Buffalo Grove 75 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 100 ‐ General Fund Revenues 10 ‐ Property Taxes 400.01 Corporate Levy ‐ Cook County 440,506      527,219      510,727      514,302        518,387       400.02 Corporate Levy ‐ Lake County 1,688,382   1,682,567   1,685,639   1,697,438     1,710,923    400.03 Police Protection ‐ Cook County 105,615      126,815      122,924      123,784        124,767       400.04 Police Protection ‐ Lake County 404,820      403,424      405,707      408,546        411,792       400.05 Crossing Guard Levy ‐ Cook Cty 10,306        12,396        12,019        12,103          12,199         400.06 Crossing Guard Levy ‐ Lake Cty 39,733        39,596        39,669        39,946          40,264         400.07 Fire Protection ‐ Cook County 755,231      903,623      875,657      881,786        888,791       400.08 Fire Protection ‐ Lake County 2,896,020   2,884,796   2,890,085   2,910,315     2,933,436    400.09 Street & Bridge Levy ‐ Cook Cty 140,500      168,073      162,868      164,008        165,311       400.10 Street & Bridge Levy ‐ Lake Cty 538,417      536,559      537,543      541,305        545,606       400.11 Street Lighting Levy ‐ Cook Cty 47,655        56,986        55,218        55,604          56,046         400.12 Street Lighting Levy ‐ Lake Cty 182,545      181,914      182,247      183,522        184,980       400.13 ESDA Levy ‐ Cook County 2,614          3,064          2,930          2,950            2,973           400.14 ESDA Levy ‐ Lake County 9,788          9,755          9,671          9,738            9,816           400.50 Police Pension ‐ Lake County 1,549,154   1,675,063   1,661,347   1,672,976     1,691,232    400.51 Police Pension ‐ Cook County 407,974      526,255      498,490      501,979        507,457       400.60 Fire Pension ‐ Lake County 1,473,155   1,545,583   1,541,289   1,552,078     1,555,628    400.61 Fire Pension ‐ Cook County 390,982      488,190      462,467      465,704        466,769       10 ‐ Property Taxes 11,083,397 11,771,878 11,656,497 11,738,084   11,826,377  Percent Change 2013 vs. 2012 Budget 1.46% 15 ‐ Other Taxes 410.05 Local Use Tax ‐              ‐              ‐              ‐                655,636       410.10 State Income Tax 5,321,472   3,714,864   3,629,853   3,820,000     3,464,916    410.15 Sales Tax ‐ State 4,654,246   4,096,821   4,374,760   4,400,906     4,532,933    410.16 Sales Tax Rebate Payments (91,085)       (133,336)     ‐              ‐                ‐               410.20 Road & Bridge Tax Wheeling 24,447        31,199        28,000        28,000          28,000         410.25 Road & Bridge Tax Vernon 165,783      157,244      161,000      161,000        161,000       410.30 Foreign Fire Insurance Tax ‐              ‐              ‐              ‐                ‐               410.50 Replacement Tax ‐              ‐              ‐              ‐                ‐               415.05 Sales Tax ‐ Home Rule 2,838,569   3,153,985   3,044,100   3,044,973     3,136,322    415.10 Home Rule Rebate (91,930)       (133,336)     ‐              ‐                ‐               415.15 Real Estate Transfer Tax 545,515      629,376      500,000      500,000        525,000       415.20 Hotel/Motel Tax 129,712      131,386      121,000      121,000        121,000       415.25 Simplified Telecommunications Tx 2,183,190   2,134,462   2,055,073   2,141,711     1,971,711    415.30 Prepared Food & Beverage Tax 691,114      712,789      739,356      720,000        741,600       415.35 Electricity Use Tax 1,476,404   1,574,578   1,619,000   1,626,929     1,620,384    415.40 Natural Gas Use Tax 756,073      992,513      1,052,218   931,502        948,000       415.45 Para Mutual Tax 84,032        73,027        80,000        22,947           ‐               415.50 Auto Rental Tax 6,556          11,546        10,000        8,500            8,500           15 ‐ Other Taxes 18,694,098 17,147,118 17,414,360 17,527,468   17,915,002  Percent Change 2013 vs. 2012 Budget 2.87% 20 ‐ Intergovernmental Revenue 440.05 Local Reimb ‐ Police Training ‐              ‐              ‐              ‐                ‐               440.10 Local Reimb ‐ Fire Training ‐              ‐              ‐              ‐                ‐               440.15 Local Reimb ‐ District #214 Officer 63,346        89,388        82,414        82,414          85,717         440.20 Local Reimb ‐ Various Govts Fuel 71,606        86,421        80,000        86,500          86,500         440.25 Local Reimb ‐ D.A.R.E. Officer 85,463        80,280        82,386        81,865          85,717         Village of Buffalo Grove 76 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  440.30 Local Reimb ‐ Police Grant Program 7,500             ‐                ‐                ‐                ‐                 440.35 Local Reimb ‐ Park District IT Support 14,167          9,996            9,996            9,996            9,996             20 ‐ Intergovernmental Revenue 242,082      266,085      254,796      260,775        267,930       Percent Change 2013 vs. 2012 Budget 5.15% 25 ‐ Licenses 420.05 Business Licenses 102,728      106,743      100,000      100,000        100,000       420.10 Tobacco Licenses 1,800          1,650          1,800          1,950            1,950           420.15 Vending Machine Licenses 2,185          2,350          2,200          2,200            2,200           420.20 Chauffer Licenses 2,650          2,160          2,650          2,650            2,650           420.25 Alarm Permits 28,375        26,650        28,375        28,375          28,375         420.50 All Other Licenses 9,165          7,350          9,000          9,000            9,000           425.05 Class A 52,500        52,450        52,500        60,000          60,000         425.10 Class B 21,550        19,550        18,400        23,000          23,000         425.15 Class C 26,250        34,800        37,500        30,000          30,000         425.20 Class D 7,200          5,400          5,400          600               600              425.25 Class E 10,500        7,500          7,500          9,000            9,000           425.30 Class F 2,000          2,000          2,000          2,000            2,000           425.50 Other 1,835          3,370          2,845          2,500            2,500           430.05 Animal Licenses Dogs 8,746          7,446          8,250          8,100            8,100           430.10 Animal Licenses Cats 680             720             800             720               720              25 ‐ Licenses 278,164      280,139      279,220      280,095        280,095       Percent Change 2013 vs. 2012 Budget 0.31% 30 ‐ Permits 435.05 Development Building Permits 170,737      44,013        232,800      147,000        19,500         435.10 Engineering Fees 40,163        78,225        50,081        50,081          49,557         435.15 Contractor Registration 61,770        75,794        70,000        69,925          70,000         435.20 Plan Review Fees 64,962        89,803        60,000        59,710          60,000         435.25 Filing Fees 5,200          2,600          2,500          2,475            2,500           435.30 Annexation Fees 20,300        4,900          65,800        700                ‐               435.35 Building Inspection Fees 223,612      306,990      225,000      154,060        200,000       435.40 Plumbing Inspection Fees 29,108        31,466        28,000        27,775          28,000         435.45 Electrical Inspection Fees 50,527        53,070        40,000        42,030          40,000         435.50 Mechanical Inspection Fees 17,585        20,200        15,000        17,050          15,000         435.55 Sign Inspection Fees 6,322          8,890          5,000          6,302            5,000           435.60 Elevator Inspection Fees 35,533        32,047        35,000        35,840          35,000         435.65 Fire Suppression Inspection Fees 2,639          6,745          4,150          1,250            1,250           435.70 Rental Inspection Fees ‐              ‐              ‐              ‐                75,000         435.71 Other Non‐Business Lic & Permits 37,406        46,443        45,000        44,360          45,000         30 ‐ Permits 765,864      801,186      878,331      658,558        645,807       Percent Change 2013 vs. 2012 Budget ‐26.47% 35 ‐ Fines and Fees 455.05 Court Fines Cook 19,320        20,232        18,950        16,000          16,000         455.10 Court Fines Lake 515,524      523,454      510,000      456,000        456,000       455.15 Village Ordinance Fines 39,152        39,162        35,500        35,500          35,500         455.20 Alarm Service Calls 30,308        24,150        27,000        17,000          17,000         455.25 Accident Reports 4,560          4,357          4,450          3,725            3,725           455.35 Ambulance Transport Fees 661,904      686,687      668,000      668,000        668,000       455.40 Subpeona Fees 2,715          1,575          1,850          1,000            1,000           Village of Buffalo Grove 77 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  455.45 DUI Assessments 29,351        35,591        30,000        30,000          25,000         455.50 Impounding Fees 116,927      69,100        86,900        46,500          39,525         35 ‐ Fines and Fees 1,419,761   1,404,308   1,382,650   1,273,725     1,261,750    Percent Change 2013 vs. 2012 Budget ‐8.74% 40 ‐ Charges for Services 441.30 Sales of Water Construction Water ‐                ‐                ‐                ‐                ‐                 40 ‐ Charges for Services ‐              ‐              ‐              ‐                ‐               Percent Change 2013 vs. 2012 Budget 0.00% 45 ‐ Interest Income 450.05 Savings 6,640          1,865          1,250          1,250            1,000           450.10 Investment Pool 809             254             500             400               300              450.15 Money Market 273             (68)              100              ‐                ‐               450.20 CD's 182,711      108,582      98,313        90,000          80,000         450.25 Securities 56,464        21,604        31,500        30,000          22,000         45 ‐ Interest Income 246,897      132,237      131,663      121,650        103,300       Percent Change 2013 vs. 2012 Budget ‐21.54% 50 ‐ Miscellaneous Revenue 465.05 Cable Franchise Fees 601,829      719,356      685,733      748,000        770,440       465.20 Facility Rental 3,850          4,037          3,850          3,850            3,850           465.60 Central Garage Reimbursements 87,540        110,388      75,000        90,000          90,000         465.70 Recycling Proceeds ‐              ‐              ‐              ‐                40,000         465.75 Auction Proceeds 195,833      142,804      ‐              ‐                ‐               465.90 Miscellaneous Income 85,173        72,121        40,000        40,000          40,000         472 Capital Contributions ‐              ‐              ‐              ‐                ‐               50 ‐ Miscellaneous Revenue 974,225      1,048,706   804,583      881,850        944,290       Percent Change 2013 vs. 2012 Budget 17.36% 55 ‐ Operating Transfers 460.05 Interfund Transfers In 705,000      705,000      705,000      705,000        765,000       55 ‐ Operating Transfers 705,000      705,000      705,000      705,000        765,000       Percent Change 2013 vs. 2012 Budget 8.51% Revenues Total 34,409,488 33,556,657 33,507,100 33,447,205   34,009,551  Percent Change 2013 vs. 2012 Budget 1.50% Village of Buffalo Grove 78 2013 Adopted Budget Office of the Village Manager The Office of Village Manager (OVM) provides general management, staff leadership, and administrative review and oversight to all Village departments. Legislative 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 Village residents. Village 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, and coordinates through the Village Manager who is responsible for carrying out the policy and overseeing the day-to- day operations of the Village. Members of the Board are assigned specific program or functional areas of responsibility by the Village President, and represent the Village at meetings, workshops and public hearings related to their assigned responsibilities. The Village Board maintains membership and participates in programs and activities in a number of organizations including but not limited to the Northwest Municipal Conference, Illinois Municipal League, Metropolitan Mayors Caucus, Lake County Municipal League, and Lake County Partners. Village commissions, committees and boards are composed of residents appointed by the Village President by and with the consent of the Board of Trustees. There are more than one-hundred volunteers serving thirteen 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 The Village Attorney provides legal service and advice to the Village staff, Village Board and Village Commissions, Committees and Boards on a variety of legal matters pertaining to Village operations. The Village Attorney attends Village Board meetings, Plan Commission and Zoning Board of Appeals public hearings, and is available for staff conferences as needed. The Village Attorney receives a monthly retainer for these services. Additional funds are budgeted for legal costs incurred by specific research, ordinance preparation, annexation agreements, contracts and litigation. Within the Legal Division budget, a Village Prosecutor is retained to represent Village interests in court. Village of Buffalo Grove 79 2013 Adopted Budget Department Structure Village Manager Director of Human Resources Deputy Village Manager Planning Information Technology/EMA Building and Zoning Legal Village of Buffalo Grove 80 2013 Adopted Budget 2012 Accomplishments 1. Conducted over 25 employee focus group sessions for the purposes of writing a comprehensive strategic plan. In addition to direct employee communication and problem solving, several integrated staffing teams performed strength, weakness, opportunity and threat (SWOT) analysis, developed realistic approaches to meeting stated objectives and assisted in the formulation of key performance indicators. The strategic plan is a document that will govern decision making for the next five to eight years. The foundation of this plan is located in Section 4: Executive Overview. 2. Passed a resolution allowing for the authorization of an electric aggregation program. Led a regional consortium of seven municipalities for the selection of an energy provider, awarded bid and launched the program for residents and small business owners, resulting in a 28 percent decrease in kilowatt hour electric rates paid by residents. 3. After issuing an RFP, collecting, compiling and analyzing the results – presented for the Village Board’s adoption a comprehensive refuse and recycling contract, with a five-year fixed rate structure and a refuse cart program. 4. Developed and presented bond ratings reviews to Moody’s Investor Services and Standard & Poor’s, earning affirmed AAA and Aaa bond ratings for existing debt, as well as AAA and Aaa ratings for Series 2012 debt. 5. Earned the Distinguished Budget Presentation Award from the Government Finance Officers Association, the first ever for the Village. 6. Prepared initial development project analysis and evaluated financial projections for presentation of the proposed Downtown Buffalo Grove project to the Village Board. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non -core. Foster an innovative culture of collaboration through the establishment of a Village -wide communication plan. Review methods for diversification of the Village’s revenue sources. Implement new business retention and expansion programming. Create funding strategy for all capital reserve programming. Village of Buffalo Grove 81 2013 Adopted Budget 2013 Staffing Summary For 2013, there will be no programmed staffing changes in this department. However, the positions of Director of Human Resources and Part-Time Secretary have been moved to a separate table within the Human Resources section of this document. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Administrative Intern 0 0 0 0 0 0 Assistant to the Village Manager 0 1 1 0 1 0 Associate Planner 0 1 0 1 0 1 Deputy Village Manager 1 0 1 0 1 0 Director of Human Resources 1 0 1 0 0 0 Emergency Response Coordinator 0 1 0 1 0 1 Village Manager 1 0 1 0 1 0 Village Planner 1 0 1 0 1 0 Secretary 1 1 1 1 1 0 Total 5 4 6 3 5 2 Full & Part-Time Total 9 9 7 *Human Resources Director and PT Secretary positions reflected in separate Human Resources table effective January 1, 2013. Village of Buffalo Grove 82 2013 Adopted Budget 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Legislative Budget Summary Legislative FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 33,900 33,000 33,000 Personal Benefits 30,728 31,250 31,500 Operating Expenses 6,277 7,275 7,350 Commissions & Committees 24,535 20,549 28,050 Capital Equipment 6,086 - - All Other Expenses 24,934 29,450 33,550 Total 126,460 121,524 133,450 Village of Buffalo Grove 83 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 100 ‐ General Fund Expenditures Department: 10 ‐ Legislative 10 ‐ Salaries 500.25 Elected Officials 32,600         33,900         33,000         33,000           33,000          10 ‐ Salaries 32,600         33,900         33,000         33,000           33,000          Percent Change 2013 vs. 2012 Budget 0.00% 15 ‐ Taxes and Benefits 505.10 Professional Training 600               118               500               250                 500                505.15 Dues & Memberships 32,414         30,610         37,650         31,000           31,000          15 ‐ Taxes and Benefits 33,014         30,728         38,150         31,250           31,500          Percent Change 2013 vs. 2012 Budget ‐17.43% 25 ‐ Operating Expenses 510.02 Telephone 460               (1,096)          100               ‐                  ‐                 510.04 Travel 9                   7                   100               25                   100                510.08 Reception & Community Affairs 3,989            7,402            7,300            7,250              7,250             510.14 Subscriptions & Publications 250               15                 100               ‐                  ‐                 510.40 Supplies ‐ Office 102               (51)                150               ‐                  ‐                 25 ‐ Operating Expenses 4,810            6,277            7,750            7,275              7,350             Percent Change 2013 vs. 2012 Budget ‐5.16% 35 ‐ Other Services 525.05 Blood Commission 72                 13                 100               ‐                  ‐                 525.20 Fireworks for the Fourth 20,000         20,000         20,000         20,000           20,000          525.25 Plan Commission ‐                ‐                100               ‐                  100                525.30 Residents with Disabilities 1,472            1,707            800               500                 800                525.35 Arts Commission 1,706            4,336            7,000            3,300              5,000             525.40 Zoning Board of Appeals ‐                ‐                50                 ‐                  50                  525.45 Village Board 784               2,555            1,700            1,200              1,500             525.50 Symphonic Band 7,634            3,838            ‐                ‐                  ‐                 525.55 Farmer's Market ‐                (7,610)          300               (4,451)            500                525.95 Other Boards/Commissions (3,602)          (304)              100               ‐                  100                35 ‐ Other Services 28,066         24,535         30,150         20,549           28,050          Percent Change 2013 vs. 2012 Budget ‐6.97% 50 ‐ Other Expenses 580.05 All Other Expenses 31,315         286               500               ‐                  500                580.10 Consultant Fees 4,139            1,487            7,000            7,000              6,600             580.45 Cable Television Programming 21,999         18,856         26,000         20,000           24,000          580.50 Senior Taxi Program 3,250            4,305            2,300            2,450              2,450             50 ‐ Other Expenses 60,703         24,934         35,800         29,450           33,550          Percent Change 2013 vs. 2012 Budget ‐6.28% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐                6,086            ‐                ‐                  ‐                 55 ‐ Capital Outlay ‐                6,086            ‐                ‐                  ‐                 Percent Change 2013 vs. 2012 Budget 0.00% Department Total: 10 ‐ Legislative 159,193       126,460       144,850       121,524         133,450        Percent Change 2013 vs. 2012 Budget ‐7.87% Village of Buffalo Grove 84 2013 Adopted Budget Office of the Village Manager FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 610,257 631,197 647,400 Personal Benefits 75,497 73,184 95,250 Operating Expenses 48,044 52,650 53,750 Contractual Services 1,600 800 800 Repairs and Maintenance 1,361 - 500 Capital Equipment 1,971 - - All Other Expenses 10,252 1,800 1,800 Total 748,982 759,631 799,500 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Office of the Village Manager Village of Buffalo Grove 85 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 15 ‐ Office of the Village Manager 10 ‐ Salaries 500.05 Full Time 457,901       476,740       569,700       536,000         559,000        500.10 Part Time 91,209         129,918       85,223         93,597           87,000          500.35 Overtime 700               1,999            ‐                ‐                  ‐                 500.40 Longevity 2,600            1,600            2,000            1,600              1,400             10 ‐ Salaries 552,410       610,257       656,923       631,197         647,400        Percent Change 2013 vs. 2012 Budget ‐1.45% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 38,710         58,941         60,500         60,500           85,000          505.10 Professional Training 464               3,517            4,500            4,500              4,500             505.15 Dues & Memberships 6,197            5,984            5,750            5,750              5,750             505.45 ICMA Deferred Compensation 10,184         7,055            3,558            2,434              ‐                 15 ‐ Taxes and Benefits 55,555         75,497         74,308         73,184           95,250          Percent Change 2013 vs. 2012 Budget 28.18% 25 ‐ Operating Expenses 510.02 Telephone 3,543            2,795            3,000            3,000              3,000             510.03 Postage 68                 ‐                ‐                ‐                  ‐                 510.04 Travel 302               479               800               1,400              800                510.06 Per Diem Allowance ‐                ‐                800               300                 800                510.08 Reception & Community Affairs 618                 1,218              1,300              600                 1,300               510.10 Maintenance Contracts 6,499            8,291            9,600            9,600              9,600             510.14 Subscriptions & Publications 124               1,459            1,775            1,000              1,775             510.16 Printing 536               4,015            1,250            250                 1,250             510.18 Village Newsletter 28,477         27,133         33,000         34,000           33,000          510.40 Supplies ‐ Office 4,343            2,654            2,500            2,500              2,225             25 ‐ Operating Expenses 44,510         48,044         54,025         52,650           53,750          Percent Change 2013 vs. 2012 Budget ‐0.51% 30 ‐ Contractual Services 515.10 Unemployment Insurance 1,600            1,600            800               800                 800                30 ‐ Contractual Services 1,600            1,600            800               800                 800                Percent Change 2013 vs. 2012 Budget 0.00% 40 ‐ Repairs and Maintenance 550.05 Department Equipment ‐                1,361            500               ‐                  500                40 ‐ Repairs and Maintenance ‐                1,361            500               ‐                  500                Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses 4,924            10,252         1,800            1,800              1,800             50 ‐ Other Expenses 4,924            10,252         1,800            1,800              1,800             Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 1,927            1,971            ‐                ‐                  ‐                 55 ‐ Capital Outlay 1,927            1,971            ‐                ‐                  ‐                 Percent Change 2013 vs. 2012 Budget 0.00% Department Total: 15 ‐ Office of the Village Ma 660,926       748,982       788,356       759,631         799,500        Percent Change 2013 vs. 2012 Budget 1.41% Village of Buffalo Grove 86 2013 Adopted Budget 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Legal Services Legal FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Legal Services 278,583 273,175 289,650 Total 278,583 273,175 289,650 Village of Buffalo Grove 87 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 20 ‐ Legal 30 ‐ Contractual Services 520.05 Retainer Fee 50,000         50,000         50,000         50,000           50,000          520.10 Prosecutor Fee 70,120         77,370         68,000         57,000           68,000          520.15 Attorney's Fees 128,023       133,163       106,700       151,563         152,000        520.20 Recording Fees 180               254               500               132                 200                520.25 Legal Notices 5,397            4,317            5,000            8,360              8,400             520.30 Litigation Reserve 6,904            9,370            6,750            4,110              4,200             520.35 Messenger Fees 473               195               700               350                 350                520.40 Special Counsel 10,944         1,083            2,000            1,000              1,000             520.45 Legal Reimburseables 2,086            2,831            2,500            660                 5,500             30 ‐ Contractual Services 274,127       278,583       242,150       273,175         289,650        Percent Change 2013 vs. 2012 Budget 19.62% Department Total: 20 ‐ Legal 274,127       278,583       242,150       273,175         289,650        Percent Change 2013 vs. 2012 Budget 19.62% Village of Buffalo Grove 88 2013 Adopted Budget Information Technology Emergency Management Agency Information Technology Information Technology provides management, review and oversight of all Village Department’s information system needs via the following activities: 1) providing intra-departmental computer and telephone support for network technologies and individual computers and telephones; 2) planning, evaluating and maintaining the Village’s core technologies including all hardware, software and network choices and acquisitions; 3) project planning and management to ensure that all technologies are compatible, state-of-the-art and effectively deployed; and 4) guaranteeing the integrity and security of the overall system and its data, including all local and wide area networks, from internal and external conditions. Emergency Management Agency (EMA) The Emergency Management Agency (EMA) oversees a comprehensive program which seeks to mitigate the effects of various hazards, prepare for measures which will preserve life and minimize damage, respond during emergencies and provide assistance and establish a recovery system to return the community to a normal status. The EMA Division carries out these tasks and conducts its initiatives utilizing a committed team of volunteers, Village staff, and federal, state or local sources available. Department Structure Village Manager Director of Information Technology & EMA IT Staff Emergency Management Agency Village of Buffalo Grove 89 2013 Adopted Budget 2012 Accomplishments - IT 1. New accounting software: Working with the Finance Department, the IT Department configured several new servers and assisted with the data migration from a legacy system to a new state-of-the-art accounting platform. This new software is empowering senior management the ability to make smarter financial business decisions. 2. CAD Upgrade at Northwest Central Dispatch. IT worked with the Police and Fire Departments to upgrade computers and additional communication equipment to allow for connectivity to the new CAD program. 3. Improved multi-media capabilities in conference rooms: The IT Department worked with Police, Fire, Public Works and members of Village Hall staff to enable multi-media capabilities in the major conference rooms. This allows staff and guests the ability to share information from their laptops or smart devices via permanently mounted projectors. 4. Replace cell phone and land lines for improved reliability and cost savings. In 2012 staff cell phones were migrated from Nextel to Sprint. This migration provided for a more reliable cellular infrastructure. These two projects combined to save the Village over $18,000 in telephone charges compared to 2011. 5. Implement document management solution. Laserfiche was selected as a village wide document management solution. This data repository allows for documents to be scanned into a centralized system and is available for staff to easily search and retrieve documents. 6. Disaster recovery site. To reduce risk and provide additional redundancy, the IT Department has improved its disaster recovery site. This site currently houses a subset of the Villages’ servers and a series of back-up servers. 2012 Accomplishments - EMA 1. Updated Standard Operating Procedures manual. With the deployment of the new MobileComm in 2011, most SOP's were re-written to reflect the new asset. 2. Recruit and train new members - In 2012 six new members were added to the EMA committee. The Emergency Management Agency worked with the Fire Department to identify and recruit personnel that were knowledgeable and skilled as CERT members and were able to assist in Emergency Management. 3. Train additional Duty Officers. In an effort to ensure the continuity of the agency, several members of the group were trained in a leadership capacity. This training allows for additional members to be knowledgeable in Incident Command to assist the first responders. Village of Buffalo Grove 90 2013 Adopted Budget 2013 Goals - Information Technology/Emergency Management Agency In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non-core. A technology platform is implemented that reflects the input and supports the needs of the users. No goals have been identified for this department with this Strategic Priority. No goals have been identified for this department with this Strategic Priority. No goals have been identified for this department with this Strategic Priority. 2013 Staffing Summary Information Technology Department/Emergency Management Agency – For 2013, there will be no programmed staffing changes in this department. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Director of Information Technology/EMA Coordinator 1 0 1 0 1 0 Information Technology Analyst 1 0 1 0 1 0 Information Technology Assistant 1 0 1 0 1 0 Programmer 0 1 0 1 0 1 Total 3 1 3 1 3 1 Full & Part-Time Total 4 4 4 *Independent contractor assigned to the IT Department is not reflected in this staffing table. Village of Buffalo Grove 91 2013 Adopted Budget Budget Summary Information Technology FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 344,629 357,792 361,863 Personal Benefits 74,987 80,368 82,660 Operating Expenses 219,602 199,065 254,325 Contractual Services 960 480 480 Repairs and Maintenance - 500 480 Capital Equipment 233,843 101,400 93,400 All Other Expenses 5,148 600 600 Total 879,169 740,205 793,808 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Information Technology Village of Buffalo Grove 92 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 25 ‐ Information Technology 10 ‐ Salaries 500.05 Full Time 287,057       288,613       290,072       290,000         296,163        500.10 Part Time 59,083         53,561         65,920         60,000           63,700          500.35 Overtime 285               655               ‐                ‐                  ‐                 500.40 Longevity 1,800            1,800            1,800            1,800              2,000             10 ‐ Salaries 348,225       344,629       357,792       351,800         361,863        Percent Change 2013 vs. 2012 Budget 1.14% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 59,572         68,122         67,843         67,000           71,235          505.10 Professional Training 716               3,585            10,850         7,000              11,200          505.15 Dues & Memberships 75                 175               225               200                 225                505.45 ICMA Deferred Compensation 4,327            3,105            1,450            1,450              ‐                 15 ‐ Taxes and Benefits 64,690         74,987         80,368         75,650           82,660          Percent Change 2013 vs. 2012 Budget 2.85% 25 ‐ Operating Expenses 510.02 Telephone 12,742         13,307         14,040         21,000           23,000          510.04 Travel 676               1,368            200               150                 200                510.06 Per Diem Allowance 6                   190               125               100                 125                510.08 Reception & Community Affairs ‐                  ‐                  150                 100                 150                  510.10 Maintenance Contracts 54,310         56,180         43,700         43,000           45,600          510.14 Subscriptions & Publications ‐                ‐                350               ‐                  ‐                 510.20 Computer Services 87,716         147,950       140,000       169,000         185,000        510.40 Supplies ‐ Office 506               607               500               300                 250                25 ‐ Operating Expenses 155,956       219,602       199,065       233,650         254,325        Percent Change 2013 vs. 2012 Budget 27.76% 30 ‐ Contractual Services 515 Insurance ‐                ‐                ‐                ‐                  ‐                 515.10 Unemployment Insurance 960               960               480               480                 480                30 ‐ Contractual Services 960               960               480               480                 480                Percent Change 2013 vs. 2012 Budget 0.00% 40 ‐ Repairs and Maintenance 550.05 Department Equipment ‐                ‐                500               400                 480                40 ‐ Repairs and Maintenance ‐                ‐                500               400                 480                Percent Change 2013 vs. 2012 Budget ‐4.00% 50 ‐ Other Expenses 580.05 All Other Expenses 194               5,148            600               500                 600                50 ‐ Other Expenses 194               5,148            600               500                 600                Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 43,706         42,973         71,400         70,000           73,400          555.40 Reserve for Technology 726               190,870       30,000         ‐                  20,000          55 ‐ Capital Outlay 44,432         233,843       101,400       70,000           93,400          Percent Change 2013 vs. 2012 Budget ‐7.89% Department Total: 25 ‐ Information Technolog 614,457       879,169       740,205       732,480         793,808        Percent Change 2013 vs. 2012 Budget 7.24% Village of Buffalo Grove 93 2013 Adopted Budget Emergency Management Agency FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 16,983 22,000 22,880 Personal Benefits 2,504 2,700 3,200 Operating Expenses 8,191 17,025 16,400 Repairs & Maintenance 8,979 2,000 2,200 Capital Equipment 14,236 17,000 28,200 Commodities - 400 500 All Other Expenses 271 500 300 Total 51,164 61,625 73,680 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Emergency Management Agency Village of Buffalo Grove 94 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 65 ‐ Emergency Management Agency 10 ‐ Salaries 500.05 Full Time 25,504         ‐                ‐                ‐                  ‐                 500.10 Part Time 22,327         16,983         22,440         22,000           22,880          10 ‐ Salaries 47,831         16,983         22,440         22,000           22,880          Percent Change 2013 vs. 2012 Budget 1.96% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 5,833            1,514            ‐                ‐                  ‐                 505.10 Professional Training ‐                ‐                1,400            1,200              1,400             505.15 Dues & Memberships 65                 30                 300               300                 300                505.20 Clothing Allowance 477               960               1,500            1,200              1,500             15 ‐ Taxes and Benefits 6,375            2,504            3,200            2,700              3,200             Percent Change 2013 vs. 2012 Budget 0.00% 25 ‐ Operating Expenses 510.02 Telephone 2,920            2,607            6,100            5,100              6,100             510.04 Travel ‐                ‐                500               500                 500                510.06 Per Diem Allowance ‐                ‐                400               300                 400                510.08 Reception & Community Affairs 33                   ‐                  150                 100                 150                  510.10 Maintenance Contracts 4,425            4,425            6,000            8,000              6,000             510.14 Subscriptions & Publications ‐                ‐                50                 25                   50                  510.20 Computer Services 3,480            99                 ‐                ‐                  ‐                 510.40 Supplies ‐ Office 46                 71                 3,400            3,000              3,200             510.55 Operating Equip ‐ Department ‐                989               ‐                ‐                  ‐                 25 ‐ Operating Expenses 10,904         8,191            16,600         17,025           16,400          Percent Change 2013 vs. 2012 Budget ‐1.20% 40 ‐ Repairs and Maintenance 550.05 Department Equipment 1,177            8,979            2,200            2,000              2,200             40 ‐ Repairs and Maintenance 1,177            8,979            2,200            2,000              2,200             Percent Change 2013 vs. 2012 Budget 0.00% 45 ‐ Commodities 530.50 Small Equipment Tools &  Hardware ‐                  ‐                  500                 400                 500                  45 ‐ Commodities ‐                ‐                500               400                 500                Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses 96                 271               300               500                 300                50 ‐ Other Expenses 96                 271               300               500                 300                Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 11,849         14,236         18,200         17,000           3,000             555.30 Reserve for Capital Replacement ‐                  ‐                  20,000           ‐                  10,000            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  15,200          55 ‐ Capital Outlay 11,849         14,236         38,200         17,000           28,200          Percent Change 2013 vs. 2012 Budget ‐26.18% Department Total: 65 ‐ Emergency Manageme 78,232         51,164         83,440         61,625           73,680          Percent Change 2013 vs. 2012 Budget ‐11.70% Village of Buffalo Grove 95 2013 Adopted Budget Finance The Department of Finance and General Services is established to provide the Village with a wide range of financial, analytical, and administrative tasks in a broad staff support environment. Various programs have been established to account for all Village financial transactions, the general underlying procedures for which are articulated in the Village’s Investment Policy and Procedures and affirmed as part of the Village’s annual audit process and the preparation of the Comprehensive Annual Financial Report. 1. Payroll and human resource support to include health insurance administration 2. Financial administration, planning, analysis and budgeting 3. General services and license administration 4. Utility billing 5. Bookkeeping, accounting and auditing 6. Statutory administrative services 7. Centralized Purchasing Department Structure Village Manager Director of Finance/Treasurer Deputy Village Clerk Assistant Director of Finance Utility Billing Acccounts Payable Payroll Purchasing Village of Buffalo Grove 96 2013 Adopted Budget 2012 Accomplishments 1. Successfully implemented new financial software for core financials, utility billing, budgeting, accounts payable, and payroll. Training was conducted for all users of the various modules. Worked closely with Information Technology to ensure infrastructure support. Increased the scope of the project to include LaserFishe technology and the police and fire scheduling software. 2. Prepared a twenty-year pro-forma water fund study that became the basis for a series of water rate recommendations. On July 9th, an ordinance was approved increasing the water rate in order to adequately address not only operating expenses but provide a mechanism to fund capital improvements and build reserves. 3. Issued $6 million in general obligation debt in response to an evaluation of current pavement standards. As part of the process, Moody’s and Standard & Poor’s rated this issue, and existing debt, as AAA and Aaa respectively. The rating led to true interest cost of 2.25% and an 18 year amortization. 4. Worked to secure a $6 million line of credit to be used to offset cost related to replacing all of the Village’s Ash Trees. 5. Redeployed a public works employee to Finance to become the Village’s first Purchasing Manager. In December 2012, a new purchase policy will be presented to the Village Board for approval. The first step in the transition will be to review all copier/printer contracts and consolidate all office supply purchasing. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non-core. Participate in the establishment of the Village-wide Comprehensive Training Program. Review methods for diversification of the Village’s revenue sources. No goals have been identified for this department with this Strategic Priority. Create funding strategy for all capital reserve programming. Village of Buffalo Grove 97 2013 Adopted Budget 2013 Staffing Summary For 2013, the Finance Department budget reflects an increase of 1 full-time position (Purchasing Manager). In mid- 2012, staff was authorized to create and fill this new position. As a result, centralized purchasing is currently being phased in existing vendor relationships and purchasing practices are under review. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Assistant Finance Director 1 0 1 0 1 0 Director of Finance/Treasurer 1 0 1 0 1 0 Payroll Clerk III 1 0 1 0 1 0 Purchasing Manager 0 0 0 0 1 0 Clerk III 2 0 4 0 3 0 Clerk II 2 2 1 1 1 1 Total 7 2 7 1 8 1 Full & Part-Time Total 9 8 9 Village of Buffalo Grove 98 2013 Adopted Budget Budget Summary Finance and General Services FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 555,239 613,298 685,163 Personal Benefits 100,841 133,374 148,587 Operating Expenses 196,046 155,396 157,544 Contractual Services 1,920 960 960 Committees & Commissions 34,222 44,000 42,000 Repairs and Maintenance - 1,500 2,000 Capital Equipment 2,238 - - All Other Expenses 31,649 32,000 32,000 Total 922,155 980,528 1,068,254 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Finance & General Services Village of Buffalo Grove 99 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 30 ‐ Finance 10 ‐ Salaries 500.05 Full Time 482,697       491,009       546,883       557,630         630,305        500.10 Part Time 57,432         49,648         36,960         38,268           36,058          500.25 Elected Officials 6,000            6,000            6,000            6,000              6,000             500.35 Overtime 4,270            4,582            4,500            7,000              8,000             500.40 Longevity 5,000            4,000            4,400            4,400              4,800             10 ‐ Salaries 555,399       555,239       598,743       613,298         685,163        Percent Change 2013 vs. 2012 Budget 14.43% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 83,793         95,905         127,584       127,584         143,602        505.10 Professional Training 1,200            571               2,280            2,800              3,785             505.15 Dues & Memberships 1,160            965               1,150            1,150              1,200             505.45 ICMA Deferred Compensation 5,042            3,400            1,724            1,840              ‐                 505.50 Employee Recognition ‐                ‐                ‐                ‐                  ‐                 15 ‐ Taxes and Benefits 91,195         100,841       132,738       133,374         148,587        Percent Change 2013 vs. 2012 Budget 11.94% 25 ‐ Operating Expenses 510.02 Telephone 12,682         9,326            10,000         10,000           10,000          510.03 Postage 67,743         70,855         70,575         69,370           71,798          510.04 Travel 186               598               1,460            1,100              1,500             510.06 Per Diem Allowance 110               91                 270               100                 225                510.08 Reception & Community Affairs 617                 417                 630                 600                 600                  510.10 Maintenance Contracts 32,424         44,303         5,595            5,500              5,595             510.12 Equipment Rental 2,619            2,437            3,276            3,276              3,276             510.14 Subscriptions & Publications 354               55                 150               150                 150                510.16 Printing 11,354         14,013         11,000         13,000           11,000          510.28 Audit Fees 36,300         39,300         39,300         39,300           40,400          510.40 Supplies ‐ Office 14,257         14,651         13,000         13,000           13,000          25 ‐ Operating Expenses 178,646       196,046       155,256       155,396         157,544        Percent Change 2013 vs. 2012 Budget 1.47% 30 ‐ Contractual Services 515.10 Unemployment Insurance 2,240            1,920            960               960                 960                30 ‐ Contractual Services 2,240            1,920            960               960                 960                Percent Change 2013 vs. 2012 Budget 0.00% 35 ‐ Other Services 525.10 Buffalo Grove Days 34,803         34,222         39,000         44,000           42,000          35 ‐ Other Services 34,803         34,222         39,000         44,000           42,000          Percent Change 2013 vs. 2012 Budget 7.69% 40 ‐ Repairs and Maintenance 550.05 Department Equipment ‐                ‐                2,000            1,500              2,000             40 ‐ Repairs and Maintenance ‐                ‐                2,000            1,500              2,000             Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses 722               833               1,199            1,000              1,000             580.10 Consultant Fees 31,694         30,816         33,342         31,000           31,000          Village of Buffalo Grove 100 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  50 ‐ Other Expenses 32,416         31,649         34,541         32,000           32,000          Percent Change 2013 vs. 2012 Budget ‐7.36% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 307               2,238            ‐                ‐                  ‐                 555.40 Reserve for Technology ‐                ‐                ‐                ‐                  ‐                 55 ‐ Capital Outlay 307               2,238            ‐                ‐                  ‐                 Percent Change 2013 vs. 2012 Budget 0.00% Department Total: 30 ‐ Finance 895,006       922,155       963,238       980,528         1,068,254     Percent Change 2013 vs. 2012 Budget 10.90% Village of Buffalo Grove 101 2013 Adopted Budget Human Resources The Human Resources Division is structured to provide support to all Village departments, including but not limited to recruitment, selection, training, promotion and retention of quality employees; compensation and benefit program administration; employee and labor relations; collective bargaining negotiation and management of current labor agreement(s); administration of the pay for performance system; policy administration and interpretation, assisting employees and management staff with day-to-day human resources issues; employee recognition programs; staff liaison to the Board of Fire and Police Commissioners; appointed member of the Fire Pension Board and delegate to both the Intergovernmental Personnel Benefits Cooperative (IPBC) and the Intergovernmental Risk Management Agency (IRMA). Additionally, payroll support is provided to the Department of Finance and General Services by Human Resources. This includes, but is not limited to, bi-weekly reporting to the International City/County Management Association Retirement Corporation (ICMA/RC) 457 Deferred Compensation Plan, Payroll deduction Roth IRA and VantageCare Retiree Health Savings (RHS) Plan. Department Structure Village Manager Deputy Village Manager Human Resources Risk Management Employee Benefits and Compensation Labor/Employee Relations Village of Buffalo Grove 102 2013 Adopted Budget 2012 Accomplishments 1. Both the Village’s core and optional employees’ benefits programs were completely revamped in 2012, allowing staff to offer new programs that were not previously available. 2. The Above and Beyond the Call of Duty (ABCD) employee recognition system was elevated in status by award presentations occurring at Village Board Meetings. 3. The successful completion of a full evaluation cycle, including a self-evaluation component, was accomplished for a beta group which consisted of approximately 70% of all year-round non-represented employees. 4. Benefits summaries and related benefits documents are available in electronic format to all employees via Village systems. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non -core. Focus attention on the Village workforce in the areas of leadership development and personal growth and balance via the Village Employee Health and Wellness Committee. No goals have been identified for this department with this Strategic Priority. No goals have been identified for this department with this Strategic Priority. No goals have been identified for this department with this Strategic Priority. Village of Buffalo Grove 103 2013 Adopted Budget 2013 Staffing Summary For 2013, there will be no programmed staffing changes in this department. However, beginning in 2013 both the Director of Human Resources and Part-Time Secretary, which will now appear in their own position table rather than in the Office of the Village Manager table. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Director of Human Resources 0 0 0 0 1 0 Secretary 0 0 0 0 0 1 Total 0 0 0 0 1 1 Full & Part-Time Total 0 0 2 *Human Resources Director and PT Secretary positions reflected in separate Human Resources table effective January 1, 2013. Village of Buffalo Grove 104 2013 Adopted Budget Budget Summary Human Resources FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 118,366 121,247 123,000 Personal Benefits 72,620 102,856 87,774 Operating Expenses 6,052 7,372 7,050 Contractual Services 455,782 433,441 525,160 Committees & Commissions 24,272 16,500 16,500 Capital Equipment 681 1,150 1,150 All Other Expenses 290,592 283,337 286,500 Total 968,365 965,903 1,047,134 0 200000 400000 600000 800000 1000000 1200000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Human Resources Village of Buffalo Grove 105 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 35 ‐ Human Resources 10 ‐ Salaries 500.05 Full Time 115,880       117,766       120,030       120,647         122,400        500.40 Longevity 600               600               600               600                 600                10 ‐ Salaries 116,480       118,366       120,630       121,247         123,000        Percent Change 2013 vs. 2012 Budget 1.96% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 46,211         46,310         54,482         54,500           57,379          505.10 Professional Training 2,247            904               6,035            7,899              8,000             505.15 Dues & Memberships 885               715               895               900                 895                505.40 Tuition Reimbursement 27,425         15,804         30,000         30,000           15,000          505.45 ICMA Deferred Compensation 4,540            3,059            1,557            1,557              ‐                 505.50 Employee Recognition 4,489            5,828            4,500            8,000              6,500             15 ‐ Taxes and Benefits 85,797         72,620         97,469         102,856         87,774          Percent Change 2013 vs. 2012 Budget ‐9.95% 25 ‐ Operating Expenses 510.02 Telephone 857               671               800               840                 800                510.04 Travel 760               1,028            715               1,042              1,100             510.06 Per Diem Allowance 150               200               200               200                 200                510.14 Subscriptions & Publications 116               1,047            5,150            1,650              1,650             510.22 Recruitment Charges 1,517            1,699            2,000            2,650              2,000             510.24 CDL Testing 2,120            1,220            1,000            870                 1,000             510.40 Supplies ‐ Office 56                 187               300               120                 300                25 ‐ Operating Expenses 5,576            6,052            10,165         7,372              7,050             Percent Change 2013 vs. 2012 Budget ‐30.64% 30 ‐ Contractual Services 515.05 IRMA Premium 306,483       429,034       375,425       375,425         425,000        515.10 Unemployment Insurance 320               ‐                160               160                 160                520 Legal Services ‐                ‐                ‐                ‐                  ‐                 520.40 Special Counsel 27,701         26,748         40,000         57,856           100,000        30 ‐ Contractual Services 334,504       455,782       415,585       433,441         525,160        Percent Change 2013 vs. 2012 Budget 26.37% 35 ‐ Other Services 525.15 Fire and Police Commission 8,013            24,272         16,500         16,500           16,500          35 ‐ Other Services 8,013            24,272         16,500         16,500           16,500          Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses 191               57                 1,000            1,437              1,500             580.65 IRMA Deductible ‐ Worker's Comp 176,934         189,686         145,000         152,000         155,000          580.66 IRMA Deductible ‐ Non Wrkr's  Cmp 110,189         100,849         91,000           129,900         130,000          50 ‐ Other Expenses 287,314       290,592       237,000       283,337         286,500        Percent Change 2013 vs. 2012 Budget 20.89% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 1,607            681               1,000            1,000              1,000             555.40 Reserve for Technology ‐                ‐                ‐                150                 150                Village of Buffalo Grove 106 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  55 ‐ Capital Outlay 1,607            681               1,000            1,150              1,150             Percent Change 2013 vs. 2012 Budget 15.00% Department Total: 35 ‐ Human Resources 839,291       968,365       898,349       965,903         1,047,134     Percent Change 2013 vs. 2012 Budget 16.56% Village of Buffalo Grove 107 2013 Adopted Budget Fire 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 66 members operating out of three firehouses, an administrative wing and Village Hall. In 2010 The Fire Department responded to 4,742 calls for service of which 2,955 were EMS and 1,787 were fire and rescue related. This equates to a 62 percent EMS / 38 percent fire split. The Department handled eight MABAS (Mutual Aid Box Alarm System) box alarms and nine “Code 4’s,” or confirmed fires. The Department continued its focus on public education, conducting an open house, participating in Buffalo Grove Days and conducting a Citizen’s Fire Academy. In addition to these large programs the members of the Buffalo Grove Fire Department conducted school drills and attended many block parties and special events throughout the year. A series of retirements that began in 2010 continues through 2013. This provides opportunities for new personnel, promotions and for professional growth. The level of experience has decreased because of the influx of new personnel and changing roles. This will place a larger emphasis in the coming years on training. Village of Buffalo Grove 108 2013 Adopted Budget Village Manager Fire Chief Deputy Fire Chief Deputy Fire Marshall Fire Inspectors Battalion Chief Training Battalion Chief EMS Battalion Chief Red Shift Three Lieutenants 14 FF/PM Battalion Chief Black Shift Three Lieutenants 14 FF/PM Battalion Chief Gold Shift Three Lieutenants 14 FF/PM Department Structure Village of Buffalo Grove 109 2013 Adopted Budget 2012 Accomplishments 1. Fire was able to not only meet the goal of having a response time of 8 minutes or less 90 percent of the time, but exceeded that goal by a minute. 2. The Fire Department averages 18 hours of training per person per month. At the 9 month point of the year employees are averaging 23 hours per person. That is 28 percent better than expected and meets the goal for 2013 a year ahead of time. 3. The Standard Operating Procedures manual became a larger project than anticipated and with the hiring of nine new personnel this project is a priority. The changes that are being made will result in the empowerment of a vision and success for personnel. 4. The CAD system at Northwest Central dispatch has delayed the implementation of the new radio system. Staff has implemented a new time keeping software program that will streamline process for scheduling as well as provide better and more accurate statistical data. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non -core. Participate in the establishment of the Village-wide Comprehensive Training Program. Review and revise departmental fee and fine structure. No goals have been identified for this department with this Strategic Priority. Review departmental fleet, facilities and equipment to determine need and future replacement necessity. Village of Buffalo Grove 110 2013 Adopted Budget 2013 Staffing Summary Currently, this department is going through reorganization. Due to a Voluntary Separation Incentive program, 1 Deputy Chief and 2 Firefighter/Paramedics will have retired from the Village by the end of 2012. The position of Deputy Chief is being eliminated and 3 vacant Firefighter/Paramedic positions will not be filled in 2013. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Battalion Chief 5 0 5 0 5 0 Deputy Fire Chief 2 0 2 0 1 0 Deputy Fire Marshall 1 0 1 0 1 0 Fire Chief 1 0 1 0 1 0 Fire Inspector* 1 0 1 0 1 0 Fire Inspector/Public Education Officer 1 0 0 1 0 1 Fire Lieutenant 9 0 9 0 9 0 Firefighter/Paramedic 45 0 45 0 45 0 Secretary 1 0 1 0 1 0 Clerk III 1 0 0 0 0 0 Total 67 0 65 1 64 1 Full & Part-Time Total 67 66 65 *Additionally, two full time Building Inspectors serve as part-time fire inspectors. Village of Buffalo Grove 111 2013 Adopted Budget Budget Summary Fire Services FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 6,208,587 6,037,370 5,886,663 Personal Benefits 1,206,089 1,215,928 1,335,401 Operating Expenses 246,165 334,923 375,135 Contractual Services 20,800 10,400 12,400 Repairs & Maintenance 31,621 46,000 95,666 Commodities 8,955 19,598 25,477 Capital Equipment 244 1,400 95,789 All Other Expenses 45,464 51,702 45,793 Total 7,767,925 7,717,321 7,872,324 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Fire Services Village of Buffalo Grove 112 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 40 ‐ Fire 10 ‐ Salaries 500.05 Full Time 383,986       389,597       248,900       250,970         258,900        500.10 Part Time ‐                7,466            26,000         24,000           28,000          500.20 Sworn 5,454,390    5,256,991    5,264,972    5,341,000      5,245,363     500.30 Special Duty (1,416)          2,532            ‐                ‐                  ‐                 500.35 Overtime 156,102       500,001       357,927       378,000         315,000        500.40 Longevity 50,400         52,000         43,400         43,400           39,400          10 ‐ Salaries 6,043,462    6,208,587    5,941,199    6,037,370      5,886,663     Percent Change 2013 vs. 2012 Budget ‐0.92% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 1,043,021    1,122,935    1,091,431    1,090,000      1,224,719     505.10 Professional Training 18,398         19,214         42,345         37,500           39,775          505.15 Dues & Memberships 4,050            2,334            3,260            3,200              8,204             505.20 Clothing Allowance 28,607         26,890         39,142         34,000           30,782          505.35 Safety Equipment 14,859         31,372         50,787         50,000           31,921          505.45 ICMA Deferred Compensation 8,352            3,344            1,228            1,228              ‐                 505.50 Employee Recognition ‐                ‐                ‐                ‐                  ‐                 15 ‐ Taxes and Benefits 1,117,287    1,206,089    1,228,193    1,215,928      1,335,401     Percent Change 2013 vs. 2012 Budget 8.73% 25 ‐ Operating Expenses 510.02 Telephone 23,679         15,893         14,000         14,000           20,730          510.04 Travel 2,246            2,851            5,370            4,100              4,090             510.06 Per Diem Allowance 183               93                 2,050            1,000              1,900             510.10 Maintenance Contracts 27,469         21,035         41,634         41,634           59,578          510.12 Equipment Rental 6,120            5,306            5,748            5,700              ‐                 510.14 Subscriptions & Publications 1,342            2,500            5,585            4,000              5,898             510.16 Printing 1,390            1,946            3,957            3,900              3,715             510.40 Supplies ‐ Office 7,144            4,454            11,247         11,000           11,212          510.50 Supplies ‐ All Other 23,225         5,325            29,500         29,500           24,394          510.55 Operating Equip ‐ Department 59,488         40,496         76,288         72,000           99,178          510.65 Northwest Central Dispatch 160,870       146,266       148,089       148,089         144,440        25 ‐ Operating Expenses 313,156       246,165       343,468       334,923         375,135        Percent Change 2013 vs. 2012 Budget 9.22% 30 ‐ Contractual Services 515.10 Unemployment Insurance 21,845         20,800         10,400         10,400           12,400          30 ‐ Contractual Services 21,845         20,800         10,400         10,400           12,400          Percent Change 2013 vs. 2012 Budget 19.23% 40 ‐ Repairs and Maintenance 535.20 Buildings & Facilities 2,596            2,401            5,443            2,500              44,650          545.05 Gasoline ‐                ‐                ‐                ‐                  ‐                 545.10 Diesel Fuel ‐                ‐                ‐                ‐                  ‐                 545.15 Automotive Parts 983               984               1,500            1,500              1,500             545.35 Body Work 4,619            498               5,000            4,000              5,500             545.40 Contractual Auto Services 12,662         2,408            13,741         10,000           12,151          550.05 Department Equipment 22,591         25,330         33,780         28,000           31,865          40 ‐ Repairs and Maintenance 43,451         31,621         59,464         46,000           95,666          Percent Change 2013 vs. 2012 Budget 60.88% Village of Buffalo Grove 113 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  45 ‐ Commodities 530.50 Small Equipment Tools &  Hardware 11,230           8,955              19,598           19,598           25,477            45 ‐ Commodities 11,230         8,955            19,598         19,598           25,477          Percent Change 2013 vs. 2012 Budget 30.00% 50 ‐ Other Expenses 580.05 All Other Expenses 3,513            7,127            7,217            7,217              6,028             580.11 Contractual Services 17,823         17,286         24,485         24,485           18,785          580.20 CAFT Site (3,270)          7,682            5,000            5,000              5,000             580.21 NWCH Adminstration Fee 14,589         13,369         15,080         15,000           15,980          50 ‐ Other Expenses 32,655         45,464         51,782         51,702           45,793          Percent Change 2013 vs. 2012 Budget ‐11.57% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐                ‐                1,000            500                 1,085             555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  91,704            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  3,000             560.10 Land Improvements ‐                ‐                1,325            400                 ‐                 560.30 Buildings & Structures 513               244               1,000            500                 ‐                 55 ‐ Capital Outlay 513               244               3,325            1,400              95,789          Percent Change 2013 vs. 2012 Budget 2780.87% Department Total: 40 ‐ Fire 7,583,599    7,767,925    7,657,429    7,717,321      7,872,324     Percent Change 2013 vs. 2012 Budget 2.81% Village of Buffalo Grove 114 2013 Adopted Budget Police The Police Department delivers a variety of local law enforcement services to the community. The operation is conducted through the following divisions:  Field Operations Bureau  Patrol Division  Field Operations Support Group  Staff Services Bureau  Crime Prevention  Records Police services include matters concerning crime, traffic, order maintenance, ordinance enforcement and emergency assistance. The mission of the Buffalo Grove Police Department is “As an accredited and innovative leader in law enforcement, it is the mission of the Buffalo Grove Police Department to provide the highest quality police services by working with our community and sharing our mutual responsibilities for safety, service and problem resolution. These aims are achieved through a continuous program of employee development and by maintaining a high standard of commitment, integrity, and dedication to our profession, colleagues and to all those whom we serve.” The Buffalo Grove Police Department is divided into two segments. The Field Operations Division is the largest and most visible component and consists of uniform patrol officers who provide continuous policing to the community 24 hours a day every day of the year. Detectives, youth officers and school resource officers provide specialized services and investigations that patrol officers cannot accomplish due to the time required to investigate complex incidents and crimes. The Staff Services Division provides support to the Field Operations Division by developing the department's operating budget and making program recommendations which are aligned with department goals. This division is tasked with account monitoring, records management and maintaining the agency’s technical equipment. In addition, Staff Services maintains the department’s professional accreditation status and submits applications to state and federal grant funding programs which enhance the services offered to the community. Village of Buffalo Grove 115 2013 Adopted Budget Village Manager Chief of Police Deputy Chief Field Operations Commander Staff Services Staff Services Sergeant Crime Prevention Volunteer Program Technical Services Planning & Research Records Commander Patrol Division Day Watch (Red Team) Evening Watch (White Team) Night Watch (Blue Team) Traffic Unit Crossing Guards Operations/Tra ining Sergeant Courts Commander F.O.S.G. Criminal Investigations Juvenile Operations School Resource Evidence and Property Department Structure Village of Buffalo Grove 116 2013 Adopted Budget 2012 Accomplishments 1. Crime Rate: Calls for service data indicate that the department is at or slightly below call volume and reported incidents for January through July year over year (2011 vs. 2012). 2. Grant Funding Levels: None of existing grants have reached their renewal dates. It is anticipated that the department will receive grant funding under the DOJ Bulletproof Vest Partnership and D.A.S. Charitable K-9 Grant for 2013. Due to the limitations of I.D.O.T. grant funding, 2013 DUI & seat belt enforcement project was not approved. 3. .Enhance Reliability of Mobile Communication: During the second quarter of 2012 the department successfully deployed new laptops and wireless cellular technology for use by mobile computers. 4. Automated Crash Reporting: Software has been installed in each police vehicle to accomplish this goal and the Traffic Unit is successfully utilizing the software. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non -core. Participate in the establishment of the Village-wide Comprehensive Training Program. Review and revise departmental fee and fine structure. No goals have been identified for this department with this Strategic Priority. Review departmental fleet to determine need and future replacement necessity. Village of Buffalo Grove 117 2013 Adopted Budget 2013 Staffing Summary The Police Department is going through reorganization. Due to the Voluntary Separation Incentive program, 1 Sergeant and 4 Police Officers will have retired from the Village by the end of 2012. 2 vacant police officers positions will not be filled in 2013. Additionally, the 2 Part-Time Technical Services Specialist positions, as well as the Part-Time Crime Prevention position are being eliminated from the 2013 budget. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Chief of Police 1 0 1 0 1 0 Clerk III 4 0 3 0 3 0 Clerk II 0 2 0 1 0 1 Community Service Officer 3 0 3 0 3 0 Court Supervisor 0 1 0 1 0 1 Crime Prevention/Community Relations 0 1 0 1 0 0 Crossing Guard 0 9 0 9 0 9 Deputy Police Chief 2 0 1 0 1 0 Desk Officer I 0 2 0 2 0 2 Desk Officer II 4 0 3 0 3 0 Evidence Custodian 0 1 0 1 0 1 Patrol Officer 54 0 53 0 53 0 Police Commander 3 0 3 0 3 0 Police Sergeant 11 0 10 0 10 0 Police Social Worker 0 0 0 0 0 0 Records Supervisor 1 0 1 0 1 0 Research and Planning Specialist 0 0 0 0 0 0 Secretary 1 1 1 0 1 0 Technical Services Specialist 0 2 0 2 0 0 Total 84 19 79 17 79 14 Full & Part-Time Total 103 96 93 Village of Buffalo Grove 118 2013 Adopted Budget Budget Summary Police Services Column1 FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 7,327,115 7,294,486 7,120,465 Personal Benefits 1,302,247 1,338,339 1,357,216 Operating Expenses 535,815 513,270 581,559 Contractual Services 26,240 12,640 15,400 Repairs & Maintenance 16,234 16,869 14,849 Capital Equipment 14,786 17,500 71,450 All Other Expenses 67,035 107,095 107,295 Total 9,289,472 9,300,199 9,268,234 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Police Services Village of Buffalo Grove 119 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 45 ‐ Police 10 ‐ Salaries 500.05 Full Time 731,382       666,375       633,733       632,000         650,111        500.10 Part Time 406,854       374,034       379,813       379,813         257,416        500.20 Sworn 6,049,501    5,960,548    5,912,433    5,887,433      5,821,898     500.30 Special Duty ‐                (36,448)        ‐                ‐                  ‐                 500.35 Overtime 311,922       304,806       338,640       338,640         338,640        500.40 Longevity 53,200         57,800         57,600         56,600           52,400          10 ‐ Salaries 7,552,859    7,327,115    7,322,219    7,294,486      7,120,465     Percent Change 2013 vs. 2012 Budget ‐2.76% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 1,108,910    1,188,874    1,236,300    1,236,300      1,259,940     505.10 Professional Training 32,266         28,905         34,450         34,450           33,250          505.15 Dues & Memberships 2,255            2,097            2,000            2,000              2,000             505.20 Clothing Allowance 33,160         33,089         32,775         32,225           31,750          505.25 Uniform Maintenance 30,032         41,648         28,032         28,000           26,976          505.30 Recruit Uniforms 1,765            1,930            3,800            3,798              3,300             505.45 ICMA Deferred Compensation 11,251         5,704            1,851            1,566              ‐                 15 ‐ Taxes and Benefits 1,219,639    1,302,247    1,339,208    1,338,339      1,357,216     Percent Change 2013 vs. 2012 Budget 1.34% 25 ‐ Operating Expenses 510.02 Telephone 29,242         36,865         34,360         33,360           36,140          510.04 Travel 1,208            724               2,640            2,000              2,225             510.06 Per Diem Allowance 1,216            1,130            1,500            1,500              1,500             510.10 Maintenance Contracts ‐                40,000         ‐                ‐                  43,260          510.14 Subscriptions & Publications 950               1,069            1,000            1,000              900                510.16 Printing 9,236            7,212            9,850            8,850              9,775             510.22 Recruitment Charges 872               1,179            1,500            1,500              1,500             510.26 Physical Fitness Equipment 405               ‐                400               400                 400                510.30 Safety Equipment ‐ Patrol 3,173            3,442            3,195            3,195              6,175             510.32 Safety Equipment ‐ FOSG 96                 100               500               500                 500                510.33 Operating Equip ‐ Staff ‐                ‐                500               500                 500                510.34 DUI Assessment Purchases 44,746         15,315         ‐                ‐                  ‐                 510.35 Reimburseable Expenses 310               3,724            ‐                ‐                  ‐                 510.41 Supplies ‐ Patrol 2,503            10,228         2,900            2,900              2,900             510.42 Supplies ‐ FOSG 5,106            4,593            4,560            4,300              4,550             510.43 Supplies ‐ Communications 2,444            523               2,400            2,400              1,600             510.44 Supplies ‐ Records 7,230            9,481            10,500         10,000           10,300          510.45 Supplies ‐ OCOP 196               533               500               500                 450                510.46 Supplies ‐ Training 8,551            10,004         8,550            8,550              8,550             510.47 Supplies ‐ Crime Prevention 4,812            4,279            4,600            4,600              4,600             510.48 Supplies ‐ Detention 1,761            956               1,300            1,150              1,300             510.55 Operating Equip ‐ Department 11,500         ‐                12,240         12,240           11,880          510.56 Operating Equip ‐ Patrol 5,754            2,695            2,840            2,740              2,800             510.57 Operating Equip ‐ FOSG ‐                ‐                3,468            3,468              3,468             510.58 Operating Equip ‐  Communications 612                 319                 550                 550                 550                  510.60 Operating Equip ‐ OCOP ‐                55                 200               200                 200                510.61 Operating Equip ‐ Training ‐                145               720               500                 700                510.62 Operating Equip ‐ Detention ‐                ‐                150               150                 150                510.63 Operating Equip ‐ Bike Patrol 92                 998               1,300            800                 1,300             Village of Buffalo Grove 120 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  510.64 Operating Equipment ‐ Records 1,154              670                 1,072              1,072              1,072               510.65 Northwest Central Dispatch 362,902       311,096       339,854       335,000         351,730        510.66 NIPAS 6,574            5,010            5,010            5,010              5,835             510.67 Northern IL Police Crime Lab 58,238         57,694         58,749         58,500           59,049          510.68 Animal Control 4,358            3,296            4,900            4,500              4,400             510.69 Prisoner Care 1,067            2,480            1,335            1,335              1,300             25 ‐ Operating Expenses 576,308       535,815       523,143       513,270         581,559        Percent Change 2013 vs. 2012 Budget 11.17% 30 ‐ Contractual Services 515.10 Unemployment Insurance 26,645         26,240         12,640         12,640           15,400          30 ‐ Contractual Services 26,645         26,240         12,640         12,640           15,400          Percent Change 2013 vs. 2012 Budget 21.84% 40 ‐ Repairs and Maintenance 550.10 Radios ‐                3,818            4,424            4,150              3,524             550.15 Mobile Data Terminals ‐                3,894            3,894            3,894              2,500             550.20 Patrol Equipment 5,250            5,262            5,375            5,375              5,375             550.25 F.O.S.G. Equipment 716               600               700               700                 700                550.30 Staff Equipment 5,058            2,660            2,750            2,750              2,750             40 ‐ Repairs and Maintenance 11,024         16,234         17,143         16,869           14,849          Percent Change 2013 vs. 2012 Budget ‐13.38% 50 ‐ Other Expenses 580.05 All Other Expenses 7,376            5,025            6,800            6,000              6,750             580.11 Contractual Services ‐                ‐                40,000         40,000           40,000          580.15 Committee on Accreditation 4,259            5,942            5,500            5,500              5,500             580.25 OMNI Youth Services 35,000         35,000         35,000         35,000           35,000          580.30 Overweight Truck Enforcement 2,099            1,878            2,211            2,000              2,200             580.55 Records Management ‐                ‐                10,350         10,345           10,345          580.57 Police Grant Charges 8,250            8,845            8,250            8,250              7,500             580.58 Il. Criminal Justice Info. Auth.6,850            10,345         ‐                ‐                  ‐                 50 ‐ Other Expenses 63,834         67,035         108,111       107,095         107,295        Percent Change 2013 vs. 2012 Budget ‐0.75% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 19,688         14,786         18,500         17,500           18,500          555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  45,000            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  7,950             55 ‐ Capital Outlay 19,688         14,786         18,500         17,500           71,450          Percent Change 2013 vs. 2012 Budget 286.22% Department Total: 45 ‐ Police 9,469,997    9,289,472    9,340,964    9,300,199      9,268,234     Percent Change 2013 vs. 2012 Budget ‐0.78% Village of Buffalo Grove 121 2013 Adopted Budget Building and Zoning, Health Department The Building and Zoning Department 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. The Health Department is a division of this department. Department Structure Village Manager Deputy Village Manager Building and Zoning Commissioner - Operations/Health Health Inspection Building & Property Maintenance Inspections Building and Zoning Commissioner - Administration Adminstration, Front Desk, Records, Plan Review Village of Buffalo Grove 122 2013 Adopted Budget 2012 Accomplishments 1. B&Z/Health had twelve articles featuring information concerning the services provided by the department included in the Village Newsletter. Additionally, during each week of Building Safety Month (May) the department featured various articles on the Village website highlighting a specific area of interest in order to increasing public awareness. 2. In October, the municipal code was amended to include a Residential Rental Housing Program. The purpose of the program is to provide for the registration and inspections of all rental properties within the Village. The program was established to protect the health, safety and welfare of the residents of the community. 3. The Health Inspector was certified as a Fire Prevention Inspector this year and is now assisting the Fire Prevention Bureau in routine inspections. 4. Based upon the current implementation schedule, credit card acceptance should be available in the 1st quarter of 2013. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non -core. Participate in the establishment of the Village-wide Comprehensive Training Program. Review and revise departmental fee and fine structure. Be business friendly by educating, streamlining and simplifying administrative processes. Review departmental fleet to determine need and future replacement necessity. Village of Buffalo Grove 123 2013 Adopted Budget FY 2013 Staffing Summary For 2013, there will be no programmed staffing changes in this department. FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Building Inspector 1 0 1 0 1 0 Deputy Building Commissioner 2 0 2 0 2 0 Electrical Inspector 1 0 1 0 1 0 Health Inspector 1 0 1 0 1 0 Plan Reviewer 1 0 1 0 1 0 Plumbing Inspector 1 0 1 0 1 0 Property Maintenance Inspetor 1 0 1 0 1 0 Clerk II 0 2 0 2 0 2 Secretary 1 0 1 0 1 0 Total 9 2 9 2 9 2 Full & Part-Time Total 11 11 11 Village of Buffalo Grove 124 2013 Adopted Budget Budget Summary Building Zoning/Health FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 773,634 816,099 834,158 Personal Benefits 137,479 151,468 153,545 Operating Expenses 60,955 60,973 61,492 Contractual Services 2,880 1,440 1,800 Repairs & Maintenance 2,342 2,253 3,033 Capital Equipment - - 4,864 Commodities 79 561 600 All Other Expenses 27,580 23,786 24,626 Total 1,004,949 1,056,580 1,084,118 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Building & Zoning Village of Buffalo Grove 125 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 50 ‐ Building & Zoning 10 ‐ Salaries 500.05 Full Time 705,115       716,610       743,351       743,351         763,218        500.10 Part Time 43,614         47,026         71,153         63,405           59,140          500.35 Overtime 3,280            3,798            5,288            3,143              5,000             500.40 Longevity 6,200            6,200            6,200            6,200              6,800             10 ‐ Salaries 758,209       773,634       825,992       816,099         834,158        Percent Change 2013 vs. 2012 Budget 0.99% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 114,857       129,938       143,497       143,497         146,865        505.10 Professional Training 3,277            3,294            5,206            4,950              5,280             505.15 Dues & Memberships 1,082            1,007            1,387            1,387              1,400             505.35 Safety Equipment 103               ‐                ‐                ‐                  ‐                 505.45 ICMA Deferred Compensation 4,814            3,240            1,634            1,634              ‐                 15 ‐ Taxes and Benefits 124,133       137,479       151,724       151,468         153,545        Percent Change 2013 vs. 2012 Budget 1.20% 25 ‐ Operating Expenses 510.02 Telephone 5,680            6,028            5,000            4,000              4,500             510.04 Travel 813               961               850               831                 850                510.06 Per Diem Allowance 134               316               600               600                 600                510.08 Reception & Community Affairs 631                 502                 1,100              1,100              1,100               510.10 Maintenance Contracts 48,400         48,401         49,466         49,466           49,466          510.12 Equipment Rental ‐                ‐                100               ‐                  100                510.14 Subscriptions & Publications 667               1,069            976               976                 1,141             510.16 Printing 1,290            1,980            1,400            1,400              1,485             510.40 Supplies ‐ Office 2,080            1,698            2,690            2,600              2,250             25 ‐ Operating Expenses 59,695         60,955         62,182         60,973           61,492          Percent Change 2013 vs. 2012 Budget ‐1.11% 30 ‐ Contractual Services 515.10 Unemployment Insurance 2,880            2,880            1,440            1,440              1,800             30 ‐ Contractual Services 2,880            2,880            1,440            1,440              1,800             Percent Change 2013 vs. 2012 Budget 25.00% 40 ‐ Repairs and Maintenance 550.05 Department Equipment 2,208            2,342            3,033            2,253              3,033             40 ‐ Repairs and Maintenance 2,208            2,342            3,033            2,253              3,033             Percent Change 2013 vs. 2012 Budget 0.00% 45 ‐ Commodities 530.50 Small Equipment Tools &  Hardware 81                   79                   600                 561                 600                  45 ‐ Commodities 81                 79                 600               561                 600                Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses 1,890            570               1,000            750                 1,000             580.10 Consultant Fees 22,296         27,010         25,000         23,036           23,626          50 ‐ Other Expenses 24,186         27,580         26,000         23,786           24,626          Percent Change 2013 vs. 2012 Budget ‐5.28% Village of Buffalo Grove 126 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  55 ‐ Capital Outlay 555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  3,064               555.40 Reserve for Technology ‐                ‐                ‐                ‐                  1,800             55 ‐ Capital Outlay ‐                ‐                ‐                ‐                  4,864             Percent Change 2013 vs. 2012 Budget 0.00% Department Total: 50 ‐ Building & Zoning 971,392       1,004,949    1,070,971    1,056,580      1,084,118     Percent Change 2013 vs. 2012 Budget 1.23% Village of Buffalo Grove 127 2013 Adopted Budget Public Works The Village of Buffalo Grove Public Works Department is made up of several sections including the following divisions: Engineering Engineering consists of subdivision and development control, capital improvement engineering, staff and general engineering services, and the necessary management of the division. Building Maintenance Division The Building Maintenance Division provides a clean, healthy, and safe working environment in each facility for village employees and to provide a clean appearance in public areas and meeting places utilized by the public and the various committees and commissions of the Village government structure. Street Division The Street Division oversees the maintenance of 120.70 centerline miles of street and approximately 241.40 miles of curb and gutter so as to insure that they are smooth, clean, safe, and structurally sound for vehicular travel in a variety of weather conditions. Public Works Administration Public Works Administration develops and oversees effective public works service delivery programs and policies, as well as administers the Village Personnel Policies. Administrative staff oversees strategic and long range planning of department programs, capital improvement plans and special projects. Administrative staff also manages the Village’s capital improvement projects and GIS for the Village. Staff also includes secretarial personnel who provide clerical support for the Public Works Department. Forestry and Grounds Division The Forestry and Grounds Division provides for the maintenance and care of parkway trees. Several tasks are performed to insure the vitality of parkway trees; tree removal and replacement, disease and insect control and the care for the overall health of the urban forest. The Division also performs various activities on the Village parkways; maintaining landscaping on Village owned properties and right-of-way, maintain maintenance for detention and retention areas for aesthetic appearance and flood control purposes and providing aquatic weed control on several ponds. Central Garage Division The Central Garage Division provides maintenance services for the Village fleet in order to maintain a cost-effective service life for each vehicle and piece of equipment. Drainage Division The Drainage Division provides for the preventive maintenance for the Village storm sewer and drainage system consistent with the program guidelines for the sanitary sewer system program. Water Division The Water Division provides a safe, high quality, uninterrupted potable water supply for all Village residents, and contract water users. Sewerage Division The Sewerage Division provides inspection, cleaning and maintenance of the Village’s sanitary sewer system to provide a safe and efficient system, which has the potential to operate at 100% of the designed flow capacity and reduce the possibility of sewage back up in residences. Village of Buffalo Grove 128 2013 Adopted Budget Department Structure Village Manager Director of Public Works Administration/Building Maintenance Engineering Operations Central Garage Streets, Drainage & Sewer Forestry Water Village of Buffalo Grove 129 2013 Adopted Budget 2012 Accomplishments 1. Awarded reaccreditation of the Public Works Department from the American Public Works Association in 2012. 2. Overhauled Emerald Ash Borer Management Plan to prepare for the removal and replacement of 7,000 Ash trees. 3. Utilized joint bidding with the Municipal Partnering Initiative to realize cost savings due to economies of scale for projects like the 2012 Sewer Lining Project, Crack Sealing, Fire Hydrant Painting and Pedestrian Bridge Inspections. 4. Completed in-house training of middle management personnel through ICMA's "Effective Supervisory Practices", 4th Edition. 5. Completed all facility related CIP projects, remodeling projects, street, sidewalk, and bikepath improvement programs, and other infrastructure maintenance. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non-core. Participate in the establishment of the Village-wide Comprehensive Training Program. Review and revise department fee and fine structure. No goals have been identified for this department with this Strategic Priority. Evaluate street and utility system lifecycle maintenance and replacement costs. Village of Buffalo Grove 130 2013 Adopted Budget 2013 Staffing Summary Public Works is going through reorganization. Due to the Voluntary Separation Incentive program, the Village Engineer retired from the Village in mid-2012. A new Village Engineer is not expected to be selected until early 2013. To compensate for the loss of the Department’s Technical Services Manager, via transfer to the position of Purchasing Manager, a second Civil Engineer I position has been added to this budget, as well as a much needed Water Customer Services Worker I. Additionally, the Part-Time Civil Engineer II and Part-Time Engineering Technician are being eliminated from the 2013 budget. FY 2011 FY 2012 FY 2013 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 1 0 Building Maintenance Worker 2 0 2 02 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 1 1 1 2 0 Clerk II 1 1 1 1 1 1 Clerk I 0 1 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 1 1 1 1 0 Fleet Manager 1 0 1 0 1 0 Forestry and Grounds Supervisor 1 0 1 0 1 0 Facility Coordinator 1 0 1 0 1 0 Laborer – Seasonal 0 9 0 9 0 9 Maintenance Worker I 9 0 10 0 10 0 Village of Buffalo Grove 131 2013 Adopted Budget FY 2011 FY 2012 FY 2013 Maintenance Worker II 8 0 8 0 8 0 Maintenance Worker II – CL 8 0 8 0 8 0 Maintenance Worker III 1 0 1 0 1 0 Metra Station Attendant 0 1 0 1 0 1 Operations Mgr – Streets, Drainage, Sanitary Sewer 1 0 1 0 1 0 Secretary 3 0 3 0 3 0 Superintendent of Water Operations 1 0 1 0 1 0 Technical Services Manager 1 0 1 0 0 0 Village Engineer 1 0 1 0 1 0 Water Customer Service Worker I 1 0 0 0 0 0 Total 51 16 51 15 51 13 Full & Part-Time Total 67 66 64 Village of Buffalo Grove 132 2013 Adopted Budget Budget Summary Building Services FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 313,544 324,451 332,657 Personal Benefits 85,864 89,751 98,797 Operating Expenses 121,254 134,055 152,050 Contractual Services - 640 800 Repairs & Maintenance 263,906 271,575 308,375 Capital Equipment - 250 20,680 Commodities 63,645 105,295 105,295 All Other Expenses 36 - - Total 848,249 926,017 1,018,654 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Building Services Village of Buffalo Grove 133 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 55 ‐ Public Works Division: 05 ‐ Building Services 10 ‐ Salaries 500.05 Full Time 301,679       304,647       313,913       313,913         322,127        500.10 Part Time ‐                ‐                ‐                ‐                  ‐                 500.35 Overtime 2,120            5,967            7,208            7,208              7,200             500.40 Longevity 2,730            2,930            3,330            3,330              3,330             10 ‐ Salaries 306,529       313,544       324,451       324,451         332,657        Percent Change 2013 vs. 2012 Budget 2.53% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 71,419         80,890         81,644         81,644           90,040          505.10 Professional Training 240               110               400               400                 400                505.15 Dues & Memberships 236               239               315               315                 315                505.20 Clothing Allowance 729               483               872               872                 872                505.26 Uniform Rental 4,162            3,958            5,220            5,220              5,220             505.35 Safety Equipment 870               184               1,300            1,300              1,950             505.45 ICMA Deferred Compensation ‐                ‐                ‐                ‐                  ‐                 15 ‐ Taxes and Benefits 77,656         85,864         89,751         89,751           98,797          Percent Change 2013 vs. 2012 Budget 10.08% 25 ‐ Operating Expenses 510.02 Telephone 2,020            1,790            2,500            2,500              2,500             510.10 Maintenance Contracts 122,883       87,085         113,000       100,000         115,000        510.12 Equipment Rental 306               185               475               475                 475                510.14 Subscriptions & Publications 25                 79                 200               200                 200                510.40 Supplies ‐ Office 382               457               530               530                 525                510.50 Supplies ‐ All Other 31,359         31,658         30,350         30,350           33,350          510.55 Operating Equip ‐ Department ‐                ‐                ‐                ‐                  ‐                 25 ‐ Operating Expenses 156,975       121,254       147,055       134,055         152,050        Percent Change 2013 vs. 2012 Budget 3.40% 30 ‐ Contractual Services 515.10 Unemployment Insurance 1,280            ‐                640               640                 800                30 ‐ Contractual Services 1,280            ‐                640               640                 800                Percent Change 2013 vs. 2012 Budget 25.00% 40 ‐ Repairs and Maintenance 535.15 Street Lights 242,829       234,447       206,000       206,000         206,000        535.20 Buildings & Facilities 26,505         29,443         51,850         65,000           101,400        550 Maintenance & Repairs ‐ Other ‐                  ‐                  ‐                  ‐                  400                  550.05 Department Equipment ‐                16                 500               500                 500                550.10 Radios ‐                ‐                75                 75                   75                  40 ‐ Repairs and Maintenance 269,334       263,906       258,425       271,575         308,375        Percent Change 2013 vs. 2012 Budget 19.33% 45 ‐ Commodities 530.10 Electricity ‐ Street Lights 115,772       75,090         103,000       90,000           90,000          530.15 Electricity ‐ Water & Sewer 1,369            4,361            ‐                ‐                  ‐                 530.20 Gas ‐ Facilities (762)              (21,515)        10,000         10,000           10,000          530.25 Gas ‐ Street Lights 6,193            5,414            8,000            5,000              5,000             Village of Buffalo Grove 134 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  530.50 Small Equipment Tools &  Hardware 330                 295                 295                 295                 295                  45 ‐ Commodities 122,902       63,645         121,295       105,295         105,295        Percent Change 2013 vs. 2012 Budget ‐13.19% 50 ‐ Other Expenses 580.05 All Other Expenses ‐                36                 ‐                ‐                  ‐                 50 ‐ Other Expenses ‐                36                 ‐                ‐                  ‐                 Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐                ‐                251               250                 250                555.20 Automobiles & Trucks ‐                ‐                ‐                ‐                  5,623             555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  14,207            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  600                55 ‐ Capital Outlay ‐                ‐                251               250                 20,680          Percent Change 2013 vs. 2012 Budget 8139.04% Division Total: 05 ‐ Building Services 934,676       848,249       941,868       926,017         1,018,654     Percent Change 2013 vs. 2012 Budget 8.15% Village of Buffalo Grove 135 2013 Adopted Budget 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Public Works Administration FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 292,474 266,962 276,669 Personal Benefits 88,193 89,488 91,450 Operating Expenses 7,357 10,500 10,700 Contractual Services 1,920 960 1,000 Repairs & Maintenance 4,704 7,940 7,940 Capital Equipment 11,773 13,800 15,000 Total 406,421 389,650 402,759 Administration Village of Buffalo Grove 136 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Division: 15 ‐ Administration 10 ‐ Salaries 500.05 Full Time 255,566       268,195       263,316       263,762         272,669        500.10 Part Time 32,118         22,479         39,501         ‐                  ‐                 500.35 Overtime ‐                ‐                400               400                 400                500.40 Longevity 1,600            1,800            3,000            2,800              3,600             10 ‐ Salaries 289,284       292,474       306,217       266,962         276,669        Percent Change 2013 vs. 2012 Budget ‐9.65% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 55,334         78,234         78,594         78,594           82,992          505.10 Professional Training 1,707            1,126            3,350            3,350              3,350             505.15 Dues & Memberships 3,925            3,795            4,458            4,458              4,458             505.20 Clothing Allowance (148)              76                 250               250                 250                505.35 Safety Equipment 114               139               400               400                 400                505.45 ICMA Deferred Compensation 6,801            4,823            2,436            2,436              ‐                 15 ‐ Taxes and Benefits 67,733         88,193         89,488         89,488           91,450          Percent Change 2013 vs. 2012 Budget 2.19% 25 ‐ Operating Expenses 510.02 Telephone 1,475            1,783            2,800            2,800              2,800             510.04 Travel 88                 48                 300               300                 300                510.10 Maintenance Contracts ‐                ‐                ‐                ‐                  ‐                 510.12 Equipment Rental ‐                ‐                ‐                ‐                  ‐                 510.14 Subscriptions & Publications 1,784            1,766            1,800            1,800              2,000             510.40 Supplies ‐ Office 4,506            3,760            5,600            5,600              5,600             510.50 Supplies ‐ All Other ‐                ‐                ‐                ‐                  ‐                 25 ‐ Operating Expenses 7,853            7,357            10,500         10,500           10,700          Percent Change 2013 vs. 2012 Budget 1.90% 30 ‐ Contractual Services 515.10 Unemployment Insurance 1,920            1,920            960               960                 1,000             30 ‐ Contractual Services 1,920            1,920            960               960                 1,000             Percent Change 2013 vs. 2012 Budget 4.17% 40 ‐ Repairs and Maintenance 550.05 Department Equipment 6,883            4,704            7,940            7,940              7,940             40 ‐ Repairs and Maintenance 6,883            4,704            7,940            7,940              7,940             Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses ‐                ‐                ‐                ‐                  ‐                 50 ‐ Other Expenses ‐                ‐                ‐                ‐                  ‐                 Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment 6,861            11,773         13,800         13,800           13,800          555.40 Reserve for Technology ‐                ‐                ‐                ‐                  1,200             55 ‐ Capital Outlay 6,861            11,773         13,800         13,800           15,000          Percent Change 2013 vs. 2012 Budget 8.70% Division Total: 15 ‐ Administration 380,534       406,421       428,905       389,650         402,759        Percent Change 2013 vs. 2012 Budget ‐6.10% Village of Buffalo Grove 137 2013 Adopted Budget 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Forestry Forestry and Grounds FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 751,787 766,892 832,409 Personal Benefits 184,484 199,543 209,416 Operating Expenses 21,988 19,586 19,772 Contractual Services 3,520 1,760 2,200 Repairs & Maintenance 49,121 30,600 1,100 Capital Equipment - - 58,661 Commodities 1,705 3,100 3,100 All Other Expenses - - - Total 1,012,605 1,021,481 1,126,658 Village of Buffalo Grove 138 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Division: 20 ‐ Forestry 10 ‐ Salaries 500.05 Full Time 719,807       731,733       749,137       728,126         775,236        500.10 Part Time 19,800         9,829            44,960         28,484           44,299          500.35 Overtime 6,790            3,925            5,144            2,982              5,374             500.40 Longevity 6,100            6,300            7,300            7,300              7,500             10 ‐ Salaries 752,497       751,787       806,541       766,892         832,409        Percent Change 2013 vs. 2012 Budget 3.21% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 166,429       176,556       189,183       189,183         199,155        505.10 Professional Training 2,759            1,554            2,250            2,250              2,250             505.15 Dues & Memberships 1,397            938               1,670            1,670              1,670             505.20 Clothing Allowance 1,342            1,680            1,539            2,539              2,539             505.26 Uniform Rental 3,290            3,072            2,503            2,503              2,552             505.35 Safety Equipment 1,003            412               1,250            1,250              1,250             505.45 ICMA Deferred Compensation 406               272               92                 148                 ‐                 15 ‐ Taxes and Benefits 176,626       184,484       198,487       199,543         209,416        Percent Change 2013 vs. 2012 Budget 5.51% 25 ‐ Operating Expenses 510.02 Telephone 2,992            2,389            2,615            2,615              2,615             510.10 Maintenance Contracts 6,485            7,641            7,750            7,750              7,750             510.12 Equipment Rental 500               696               835               696                 835                510.14 Subscriptions & Publications ‐                ‐                100               ‐                  100                510.40 Supplies ‐ Office 373               393               524               525                 472                510.50 Supplies ‐ All Other 4,810            7,937            5,000            5,000              5,000             510.55 Operating Equip ‐ Department 2,823            2,932            ‐                3,000              3,000             25 ‐ Operating Expenses 17,983         21,988         16,824         19,586           19,772          Percent Change 2013 vs. 2012 Budget 17.52% 30 ‐ Contractual Services 515.10 Unemployment Insurance 3,520            3,520            1,760            1,760              2,200             30 ‐ Contractual Services 3,520            3,520            1,760            1,760              2,200             Percent Change 2013 vs. 2012 Budget 25.00% 40 ‐ Repairs and Maintenance 535.30 Parkway Trees 24,369         48,468         30,000         30,000           ‐                 550.05 Department Equipment 293               512               600               600                 600                550.10 Radios 283               141               500               ‐                  500                40 ‐ Repairs and Maintenance 24,945         49,121         31,100         30,600           1,100             Percent Change 2013 vs. 2012 Budget ‐96.46% 45 ‐ Commodities 530.45 Chemicals and Fertilizers 3,834            1,132            2,500            2,500              2,500             530.50 Small Equipment Tools &  Hardware 332                 573                 600                 600                 600                  45 ‐ Commodities 4,166            1,705            3,100            3,100              3,100             Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses ‐                ‐                75                 ‐                  ‐                 50 ‐ Other Expenses ‐                ‐                75                 ‐                  ‐                 Village of Buffalo Grove 139 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Percent Change 2013 vs. 2012 Budget ‐100.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐                ‐                3,000            ‐                  ‐                 555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  57,911            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  750                55 ‐ Capital Outlay ‐                ‐                3,000            ‐                  58,661          Percent Change 2013 vs. 2012 Budget 1855.37% Division Total: 20 ‐ Forestry 979,737       1,012,605    1,060,887    1,021,481      1,126,658     Percent Change 2013 vs. 2012 Budget 6.20% Village of Buffalo Grove 140 2013 Adopted Budget 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Central Garage Central Garage FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 461,351 473,670 491,683 Personal Benefits 117,719 118,674 131,582 Operating Expenses 10,719 13,363 29,612 Contractual Services 1,600 800 1,000 Repairs & Maintenance 620,294 652,888 642,733 Capital Equipment 793,058 - 19,343 Commodities 2,671 4,964 3,000 All Other Expenses - - - Total 2,007,412 1,264,359 1,318,953 Village of Buffalo Grove 141 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Division: 30 ‐ Central Garage 10 ‐ Salaries 500.05 Full Time 431,045       437,141       448,836       448,615         466,099        500.10 Part Time 15,419         15,941         16,214         16,216           16,626          500.35 Overtime 4,138            3,979            4,509            4,549              4,668             500.40 Longevity 4,090            4,290            4,290            4,290              4,290             10 ‐ Salaries 454,692       461,351       473,849       473,670         491,683        Percent Change 2013 vs. 2012 Budget 3.76% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 99,604         113,284       114,182       114,182         125,710        505.10 Professional Training ‐                ‐                700               ‐                  700                505.15 Dues & Memberships 126               189               243               126                 153                505.20 Clothing Allowance 767               553               1,069            972                 1,069             505.26 Uniform Rental 3,510            3,133            ‐                3,193              3,200             505.35 Safety Equipment 350               304               750               110                 750                505.45 ICMA Deferred Compensation 382               256               91                 91                   ‐                 15 ‐ Taxes and Benefits 104,739       117,719       117,035       118,674         131,582        Percent Change 2013 vs. 2012 Budget 12.43% 25 ‐ Operating Expenses 510.02 Telephone 2,835            2,074            2,500            1,500              2,000             510.10 Maintenance Contracts ‐                1,759            3,500            3,500              3,500             510.12 Equipment Rental 169               239               3,486            338                 300                510.14 Subscriptions & Publications 1,595            1,595            2,800            2,500              2,500             510.40 Supplies ‐ Office 425               393               525               525                 472                510.50 Supplies ‐ All Other 5,483            4,659            5,200            5,000              5,000             510.55 Operating Equip ‐ Department ‐                ‐                ‐                ‐                  15,840          25 ‐ Operating Expenses 10,507         10,719         18,011         13,363           29,612          Percent Change 2013 vs. 2012 Budget 64.41% 30 ‐ Contractual Services 515.10 Unemployment Insurance 1,600            1,600            800               800                 1,000             30 ‐ Contractual Services 1,600            1,600            800               800                 1,000             Percent Change 2013 vs. 2012 Budget 25.00% 40 ‐ Repairs and Maintenance 545.05 Gasoline 179,798       229,111       250,827       245,133         230,000        545.10 Diesel Fuel 146,959       181,604       200,998       187,610         200,000        545.15 Automotive Parts 138,826       124,134       126,549       129,207         126,549        545.25 Lubricants 10,592         7,932            17,848         8,402              8,490             545.40 Contractual Auto Services 64,218         70,759         73,394         75,178           73,394          550.05 Department Equipment 4,626            6,754            3,200            7,158              4,100             550.10 Radios ‐                ‐                200               200                 200                40 ‐ Repairs and Maintenance 545,019       620,294       673,016       652,888         642,733        Percent Change 2013 vs. 2012 Budget ‐4.50% 45 ‐ Commodities 530.50 Small Equipment Tools &  Hardware 3,001              2,671              3,000              4,964              3,000               45 ‐ Commodities 3,001            2,671            3,000            4,964              3,000             Percent Change 2013 vs. 2012 Budget 0.00% Village of Buffalo Grove 142 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  50 ‐ Other Expenses 580.05 All Other Expenses 183               ‐                75                 ‐                  ‐                 50 ‐ Other Expenses 183               ‐                75                 ‐                  ‐                 Percent Change 2013 vs. 2012 Budget ‐100.00% 55 ‐ Capital Outlay 555.20 Automobiles & Trucks 1,010,418    793,058       ‐                ‐                  ‐                 555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  18,743            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  600                55 ‐ Capital Outlay 1,010,418    793,058       ‐                ‐                  19,343          Percent Change 2013 vs. 2012 Budget 0.00% Division Total: 30 ‐ Central Garage 2,130,159    2,007,412    1,285,786    1,264,359      1,318,953     Percent Change 2013 vs. 2012 Budget 2.58% Department Total: 55 ‐ Public Works 5,959,975    5,638,223    5,685,012    5,532,046      5,632,510     Percent Change 2013 vs. 2012 Budget ‐0.92% Village of Buffalo Grove 143 2013 Adopted Budget 0 100,000 200,000 300,000 400,000 500,000 600,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Drainage Drainage Services FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 193,610 201,010 206,615 Personal Benefits 9,710 10,847 11,837 Operating Expenses 1,391 2,025 3,361 Contractual Services 640 320 400 Repairs & Maintenance 6,908 9,950 10,700 Capital Equipment 33,011 150,000 258,751 Commodities 366 850 1,000 All Other Expenses - - - Total 245,636 375,002 492,664 Village of Buffalo Grove 144 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Division: 25 ‐ Drainage 10 ‐ Salaries 500.05 Full Time 187,428       190,169       196,939       197,146         202,125        500.35 Overtime 753               1,877            2,289            2,300              2,457             500.40 Longevity 1,564            1,564            1,564            1,564              2,033             10 ‐ Salaries 189,745       193,610       200,792       201,010         206,615        Percent Change 2013 vs. 2012 Budget 2.90% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 7,892            8,257            8,723            8,723              9,379             505.10 Professional Training 73                 ‐                200               200                 200                505.15 Dues & Memberships 63                 65                 40                 40                   40                  505.20 Clothing Allowance 288               274               492               400                 492                505.26 Uniform Rental 729               611               375               392                 426                505.35 Safety Equipment 266               231               1,300            1,000              1,300             505.45 ICMA Deferred Compensation 406               272               92                 92                   ‐                 15 ‐ Taxes and Benefits 9,717            9,710            11,222         10,847           11,837          Percent Change 2013 vs. 2012 Budget 5.48% 25 ‐ Operating Expenses 510.02 Telephone 451               348               780               300                 780                510.10 Maintenance Contracts 1,060            25                 ‐                ‐                  ‐                 510.12 Equipment Rental 108               287               456               300                 456                510.14 Subscriptions & Publications ‐                ‐                75                 75                   75                  510.40 Supplies ‐ Office 400               421               500               500                 450                510.50 Supplies ‐ All Other 348               310               1,000            850                 1,000             510.55 Operating Equip ‐ Department 298               ‐                ‐                ‐                  600                25 ‐ Operating Expenses 2,665            1,391            2,811            2,025              3,361             Percent Change 2013 vs. 2012 Budget 19.57% 30 ‐ Contractual Services 515.10 Unemployment Insurance 640               640               320               320                 400                30 ‐ Contractual Services 640               640               320               320                 400                Percent Change 2013 vs. 2012 Budget 25.00% 40 ‐ Repairs and Maintenance 540.35 Storm and Sanitary Sewers 4,880            6,635            8,000            7,500              8,000             550.05 Department Equipment 2,473            273               2,500            2,250              2,500             550.10 Radios ‐                ‐                200               200                 200                40 ‐ Repairs and Maintenance 7,353            6,908            10,700         9,950              10,700          Percent Change 2013 vs. 2012 Budget 0.00% 45 ‐ Commodities 530.50 Small Equipment Tools &  Hardware ‐                  366                 1,000              850                 1,000               45 ‐ Commodities ‐                366               1,000            850                 1,000             Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses ‐                ‐                75                 ‐                  ‐                 50 ‐ Other Expenses ‐                ‐                75                 ‐                  ‐                 Percent Change 2013 vs. 2012 Budget ‐100.00% Village of Buffalo Grove 145 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐                ‐                600               ‐                  ‐                 555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  18,301            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  450                560.40 Improvements Other Than  Building 28,663           33,011           150,000         150,000         240,000          55 ‐ Capital Outlay 28,663         33,011         150,600       150,000         258,751        Percent Change 2013 vs. 2012 Budget 71.81% Division Total: 25 ‐ Drainage 238,783       245,636       377,520       375,002         492,664        Percent Change 2013 vs. 2012 Budget 30.50% Village of Buffalo Grove 146 2013 Adopted Budget Engineering Services FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 512,481 501,420 552,342 Personal Benefits 68,643 93,631 108,193 Operating Expenses 11,933 13,550 13,975 Contractual Services 1,600 1,000 1,200 Repairs & Maintenance - 5,500 5,800 Capital Equipment - 4,500 18,702 Commodities - 600 750 All Other Expenses 88 300 1,050 Total 594,745 620,501 702,012 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Engineering Village of Buffalo Grove 147 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 60 ‐ Engineering 10 ‐ Salaries 500.05 Full Time 447,836       452,444       466,845       429,785         528,002        500.10 Part Time 59,325         56,437         63,907         68,035           20,940          500.35 Overtime ‐                ‐                600               ‐                  600                500.40 Longevity 3,200            3,600            3,600            3,600              2,800             10 ‐ Salaries 510,361       512,481       534,952       501,420         552,342        Percent Change 2013 vs. 2012 Budget 3.25% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 54,970         60,823         62,616         62,616           99,343          505.10 Professional Training 3,813            2,408            6,900            6,900              6,900             505.15 Dues & Memberships 896               800               900               900                 900                505.20 Clothing Allowance 163               193               400               400                 400                505.35 Safety Equipment 182               161               650               400                 650                505.45 ICMA Deferred Compensation 5,975            4,258            2,172            22,415           ‐                 15 ‐ Taxes and Benefits 65,999         68,643         73,638         93,631           108,193        Percent Change 2013 vs. 2012 Budget 46.93% 25 ‐ Operating Expenses 510.02 Telephone 600               ‐                1,000            1,000              1,000             510.04 Travel ‐                5                   75                 50                   75                  510.06 Per Diem Allowance ‐                15                 250               100                 250                510.14 Subscriptions & Publications 311               293               800               700                 800                510.16 Printing 3,231            2,890            3,800            3,800              3,800             510.20 Computer Services ‐                3,957            4,000            4,300              4,500             510.40 Supplies ‐ Office 1,387            1,584            2,000            2,000              1,800             510.50 Supplies ‐ All Other 1,239            948               1,750            1,600              1,750             510.55 Operating Equip ‐ Department 4,459            2,241            ‐                ‐                  ‐                 25 ‐ Operating Expenses 11,227         11,933         13,675         13,550           13,975          Percent Change 2013 vs. 2012 Budget 2.19% 30 ‐ Contractual Services 515.10 Unemployment Insurance 1,600            1,600            800               1,000              1,200             30 ‐ Contractual Services 1,600            1,600            800               1,000              1,200             Percent Change 2013 vs. 2012 Budget 50.00% 40 ‐ Repairs and Maintenance 550.05 Department Equipment 1,307            ‐                5,275            5,500              5,500             550.10 Radios ‐                ‐                300               ‐                  300                40 ‐ Repairs and Maintenance 1,307            ‐                5,575            5,500              5,800             Percent Change 2013 vs. 2012 Budget 4.04% 45 ‐ Commodities 530.50 Small Equipment Tools &  Hardware 645                 ‐                  750                 600                 750                  45 ‐ Commodities 645               ‐                750               600                 750                Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Other Expenses 580.05 All Other Expenses 172               88                 300               300                 300                580.10 Consultant Fees ‐                ‐                1,000            ‐                  750                50 ‐ Other Expenses 172               88                 1,300            300                 1,050             Percent Change 2013 vs. 2012 Budget ‐19.23% Village of Buffalo Grove 148 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐                ‐                4,500            4,500              12,000          555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  3,702               555.40 Reserve for Technology ‐                ‐                ‐                ‐                  3,000             55 ‐ Capital Outlay ‐                ‐                4,500            4,500              18,702          Percent Change 2013 vs. 2012 Budget 315.60% Department Total: 60 ‐ Engineering 591,311       594,745       635,190       620,501         702,012        Percent Change 2013 vs. 2012 Budget 10.52% Village of Buffalo Grove 149 2013 Adopted Budget 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Streets Street Operations and Maintenance FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 549,723 553,321 567,837 Personal Benefits 104,381 105,570 118,873 Operating Expenses 26,348 106,586 108,364 Contractual Services - 960 1,200 Repairs & Maintenance 273,095 481,600 257,600 Capital Equipment - - 73,448 Commodities 164,657 307,500 145,500 All Other Expenses (304) - - Total 1,117,900 1,555,537 1,272,822 Village of Buffalo Grove 150 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Division: 10 ‐ Streets 10 ‐ Salaries 500.05 Full Time 453,733       461,675       484,268       477,620         489,681        500.10 Part Time ‐                ‐                ‐                ‐                  ‐                 500.35 Overtime 110,336       83,276         71,755         70,929           73,323          500.40 Longevity 4,572            4,772            4,772            4,772              4,833             10 ‐ Salaries 568,641       549,723       560,795       553,321         567,837        Percent Change 2013 vs. 2012 Budget 1.26% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 103,448       100,307       101,313       101,313         114,618        505.10 Professional Training 1,007            120               700               600                 700                505.15 Dues & Memberships 123               185               160               160                 100                505.20 Clothing Allowance 1,065            828               1,328            1,328              1,328             505.26 Uniform Rental 2,683            2,106            1,236            1,277              1,277             505.35 Safety Equipment 779               563               850               800                 850                505.45 ICMA Deferred Compensation 406               272               92                 92                   ‐                 15 ‐ Taxes and Benefits 109,511       104,381       105,679       105,570         118,873        Percent Change 2013 vs. 2012 Budget 12.48% 25 ‐ Operating Expenses 510.02 Telephone 2,746            1,364            2,615            1,500              2,615             510.10 Maintenance Contracts 73,322         18,988         98,386         98,386           98,386          510.12 Equipment Rental 347               707               816               600                 816                510.14 Subscriptions & Publications ‐                ‐                75                 75                   75                  510.40 Supplies ‐ Office 438               395               525               525                 472                510.50 Supplies ‐ All Other 3,602            4,894            5,000            4,500              5,000             510.55 Operating Equip ‐ Department 998               ‐                1,000            1,000              1,000             25 ‐ Operating Expenses 81,453         26,348         108,417       106,586         108,364        Percent Change 2013 vs. 2012 Budget ‐0.05% 30 ‐ Contractual Services 515.10 Unemployment Insurance 2,560            ‐                960               960                 1,200             30 ‐ Contractual Services 2,560            ‐                960               960                 1,200             Percent Change 2013 vs. 2012 Budget 25.00% 40 ‐ Repairs and Maintenance 535.05 Sidewalks, Curbs, & Bikeways 142,902       149,964       325,000       325,000         100,000        535.10 Streets & Highways 106,980       115,197       148,000       148,000         148,000        550.05 Department Equipment 11,466         7,934            9,000            8,000              9,000             550.10 Radios 280               ‐                600               600                 600                40 ‐ Repairs and Maintenance 261,628       273,095       482,600       481,600         257,600        Percent Change 2013 vs. 2012 Budget ‐46.62% 45 ‐ Commodities 530.40 Snow & Ice Control Mix 276,018       140,557       286,020       265,000         100,000        530.50 Small Equipment Tools &  Hardware (4,641)            23,667           500                 500                 500                  530.55 Traffic & Street Signs 713               433               45,000         42,000           45,000          45 ‐ Commodities 272,090       164,657       331,520       307,500         145,500        Percent Change 2013 vs. 2012 Budget ‐56.11% 50 ‐ Other Expenses Village of Buffalo Grove 151 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  580.05 All Other Expenses 203               (304)              75                 ‐                  ‐                 50 ‐ Other Expenses 203               (304)              75                 ‐                  ‐                 Percent Change 2013 vs. 2012 Budget ‐100.00% 55 ‐ Capital Outlay 555.30 Reserve for Capital Replacement ‐                  ‐                  ‐                  ‐                  72,998            555.40 Reserve for Technology ‐                ‐                ‐                ‐                  450                55 ‐ Capital Outlay ‐                ‐                ‐                ‐                  73,448          Percent Change 2013 vs. 2012 Budget 0.00% Division Total: 10 ‐ Streets 1,296,086    1,117,900    1,590,046    1,555,537      1,272,822     Percent Change 2013 vs. 2012 Budget ‐19.95% Village of Buffalo Grove 152 2013 Adopted Budget Non-Operating Transfers This program provides for transfers from prior accumulations of Corporate Fund reserves for capital projects, pension fund transfers, and other operating uses as recommended and authorized within the Village’s Fund Balance Use policy for the Corporate Fund. Transfers will be made to the Police and Firefighter Pension Funds for property taxes received in 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 2013 through FY 2017 Capital Improvement Plan. Funding for these transfers will come from prior accumulation of unreserved Corporate Fund reserves. A transfer will also be made to the Facilities Development Debt Service Fund to abate a portion of the property tax related to the Series 2012 Bonds The annual transfer of 20% of anticipated Home Rule Sales Tax collections will be suspended in 2013 as a result of the bond issuance. The transfer will resume in 2014. FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Operating Expenses 34,010 15,000 115,000 All Other Expenses 967,284 606,477 202,605 Total 1,001,294 621,477 317,605 0 200000 400000 600000 800000 1000000 1200000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Non Operating Transfers Village of Buffalo Grove 153 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Department: 70 ‐ Transfer Non‐Operating Division: 40 ‐ General Government 50 ‐ Other Expenses 580.05 All Other Expenses 24,859         34,010         15,000         15,000           115,000        50 ‐ Other Expenses 24,859         34,010         15,000         15,000           115,000        Percent Change 2013 vs. 2012 Budget 666.67% 65 ‐ Other Financing Uses 570.20 Debt Service Fund 200,000       ‐                ‐                ‐                  202,605        570.50 Motor Fuel Tax Fund 556,030       615,284       593,888       606,477         ‐                 570.60 Arboretum Golf Course Fund 453,000       168,000       ‐                ‐                  ‐                 570.70 Buffalo Grove Golf Course Fund 215,000         184,000         ‐                  ‐                  ‐                   570.90 Police Pension Fund ‐                ‐                ‐                ‐                  ‐                 570.95 Fire Pension Fund ‐                ‐                ‐                ‐                  ‐                 65 ‐ Other Financing Uses 1,424,030    967,284       593,888       606,477         202,605        Percent Change 2013 vs. 2012 Budget ‐65.88% Division Total: 40 ‐ General Government 1,448,889    1,001,294    608,888       621,477         317,605        Percent Change 2013 vs. 2012 Budget ‐47.84% Division: 45 ‐ Public Safety 65 ‐ Other Financing Uses 570.90 Police Pension Fund 1,955,825    2,201,593    2,159,838    2,174,955      2,198,690     570.95 Fire Pension Fund 1,853,285    2,033,998    2,003,757    2,017,782      2,022,397     65 ‐ Other Financing Uses 3,809,110    4,235,591    4,163,595    4,192,737      4,221,087     Percent Change 2013 vs. 2012 Budget 1.38% Division Total: 45 ‐ Public Safety 3,809,110    4,235,591    4,163,595    4,192,737      4,221,087     Percent Change 2013 vs. 2012 Budget 1.38% Division: 50 ‐ Public Works 65 ‐ Other Financing Uses 570.30 Operating Transfers Fund 512,160       371,070       412,013       620,000         686,549        65 ‐ Other Financing Uses 512,160       371,070       412,013       620,000         686,549        Percent Change 2013 vs. 2012 Budget 66.63% Division Total: 50 ‐ Public Works 512,160       371,070       412,013       620,000         686,549        Percent Change 2013 vs. 2012 Budget 66.63% Department Total: 70 ‐ Transfer Non‐Operatin 5,770,159    5,607,955    5,184,496    5,434,214      5,225,241     Percent Change 2013 vs. 2012 Budget 0.79% Village of Buffalo Grove 154 2013 Adopted Budget Se   Capit Capital Im Capital P Summary Detailed  Reserve f Criteria L Motor Fu Capital P Capital P                             ectio tal Impr mprovement rojects Budg y Sheet  Project Shee for Capital R List and Scor uel Tax Fund rojects – Fac rojects – Str on  roveme t Summary  geted by Fun ets  Replacement ring Matrix  d  cilities Fund  reets Fund  6  ent Plan nd  t ‐ Vehicles n  Village of Buffalo Grove 155 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 156 2013 Adopted Budget         Capital Improvement Summary  The Capital Improvement Plan (CIP) is intended to be a decision‐making tool for the Village Board and staff.  The  operational need for capital expenditures must be weighed against the ability of the Village to finance these  projects.  Capital improvement projects represent the equipment and infrastructure resources that all  municipalities need to provide resident and business services and generally provide future benefits with long  service life.  A capital expenditure is incurred when the Village spends money to buy fixed assets or add value to an  existing fixed asset.  The Village Board’s 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 ensures that the project remains consistent with the  budget and that identified funding is available at the time of award.  Staff has reviewed each project and evaluated the project using the CIP Evaluation Form (see attachment).  The  evaluation form measures, numerically, the merits of the project based on specific criteria.  The sum of the  individual scores is then used to establish a priority rating.  The highest possible score is 26.  There are thirteen  criteria used to review projects.  Each project is revisited yearly and changes in priority are made as current  conditions warrant.  In addition, the process includes a mid‐year status evaluation of each approved budgeted  project in order to gauge construction progress and initiate the cycle for the next five‐year program update.   Projects identified for FY 2013 total $8,548,867 and are divided among five funds.  The following chart illustrates  each fund’s percentage as it relates to funding the capital program for FY 2013.    The proposed capital projects have no significant financial impact on current and future years’ operating budgets.  None of the improvements would require hiring of additional staffing, but efficiencies in staff time utilization will  allow the Village to maintain current staffing levels while also maintaining a high level of service.  For example, the  GIS Consortium is expected to increase information sharing and analysis across all Village departments while  reducing reliance on Village staff to develop and maintain data.   19% 1% 56% 21% 3% Capital Expenditures by Fund Capital Projects Fund ‐ Facilities Capital Projects Fund ‐ Streets Motor Fuel Tax Fund Water & Sewer Fund General Fund Village of Buffalo Grove 157 2013 Adopted Budget         Financially, the Annual Street Maintenance program is the largest portion of CIP expenses but work is carefully  scheduled so that maintenance and resurfacing activities can be accomplished before more costly road  reconstruction becomes necessary.  The cost of reconstruction can be as much as three times the amount of timely  maintenance.  Thus, the operating budgets for road repairs and emergency maintenance activities can remain low  as the Village continues to maintain a minimum average pavement condition throughout the Village.  Another multi‐year project is the EAB Ash Tree Replacement Program.  Through the CIP, the Village is able to  secure contract pricing and nursery stock early in the program in order to minimize the Village's exposure to rising  costs as EAB effects are felt throughout the state.  The Village expects that significant cost savings will be  generated with this approach and planned CIP expenditures will reduce last‐minute operating budget expenses  related to this natural disaster.  2013 Capital Projects Budgeted by Fund  Budget FY 2013  Capital Projects Fund ‐ Facilities  Municipal Parking Facility Maintenance $74,100  Dundee Road Streetscape $60,000  EAB Ash Tree Replacement Program $1,000,000  Raupp Bridge Reconstruction $200,000  Document Management Solution $45,000  GIS Consortium $152,997  Upgrade Wireless Network  $54,000  Subtotal $1,586,097  Capital Projects Fund ‐ Streets  Weiland Road/Prairie Road Improvements $100,452  Subtotal $100,452  Motor Fuel Tax Fund  Annual Street Maintenance $4,750,000  Subtotal $4,750,000  Water & Sewer Fund  Lift Station Repair & Rehabilitation $780,000  Pump House Repairs & Security Improvements $610,318  Scada Improvements $77,000  Villagewide Water Main Replacement $345,000  Subtotal $1,812,318  General Fund  Villagewide Storm Sewer Repair $200,000  Annual Sidewalk/Bike Path Maintenance $100,000  Subtotal $300,000  Total $8,548,867  Village of Buffalo Grove 158 2013 Adopted Budget         2013 Capital Project Requests Summary Table  2013 2014 2015 2016 2017  Buildings and Grounds Improvements  Municipal Parking Facility Maintenance $74,100 $91,000 $218,000 $169,000 $49,000  Police Department Jail Control $27,341 ‐  ‐  ‐  ‐  Police Department Skylights ($107,320) On Hold ‐  ‐  ‐  ‐  PSC Expansion ($4,227,275) On Hold ‐  ‐  ‐  ‐  Replacement Antenna Tower FS #27 $16,000 ‐  ‐  ‐  ‐  Subtotal $117,441 $91,000 $218,000 $169,000 $49,000  Emerald Ash Borer Response  EAB Ash Tree Replacement Program $1,000,000 $1,500,000 $1,500,000 $500,000 ‐  Subtotal $1,000,000 $1,500,000 $1,500,000 $500,000 $0  Street, Sidewalk & Bikepath Maintenance  Annual Street Maintenance $5,950,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000  Dundee Road Streetscape $60,000 ‐  ‐  ‐  ‐  Raupp Bridge Reconstruction $200,000 $200,000 ‐  ‐  ‐  Annual Sidewalk/Bike Path Maintenance $325,000 $325,000 $325,000 $325,000 $325,000  Weiland Road/Prairie Road Improvements $100,452 ‐  ‐  ‐  ‐  Subtotal $6,635,452 $5,525,000 $5,325,000 $5,325,000 $5,325,000  Storm Sewer System  Villagewide Storm Sewer Repair $300,000 ‐ $300,000 ‐ $300,000  Subtotal $300,000 $0 $300,000 $0 $300,000  Technology  Audio/Visual Council Chambers ($65,000) On Hold ‐  ‐  ‐  ‐  Document Management Solution $45,000 ‐  ‐  ‐  ‐  GIS Consortium $152,997 $141,512 $148,143 $154,855 $162,372  Public Works Software $33,125 $4,500 $4,500 $4,500 $4,500  Upgrade Wireless Network  $54,000 ‐  ‐  ‐  ‐  Subtotal $285,122 $146,012 $152,643 $159,355 $166,872  Water Main & Sanitary Sewer Systems  Lift Station Repair & Rehabilitation $780,000 $530,000 $300,000 $300,000 $300,000  Pump House Repairs & Security Improvements $610,318 ‐  ‐  ‐  ‐  SCADA Improvements $77,000 $85,800 $103,400 $66,000 ‐  Villagewide Sanitary Sewer Replacement $0 $700,000 ‐ $700,000 ‐  Villagewide Water Main Replacement $345,000 $959,500 $700,000 ‐ $700,000  Subtotal $1,812,318 $2,275,300 $1,103,400 $1,066,000 $1,000,000  Total $10,150,333 $9,537,312 $8,599,043 $7,219,355 $6,840,872  Grand Total 2013‐2017         $42,346,915  Village of Buffalo Grove 159 2013 Adopted Budget         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, and   Ensure that any issues affecting health and safety of building occupants are promptly  addressed.  The Village’s facilities include:   Village Hall,   Public Service Center & Salt Dome,   Police Department,   Fire Station Admin, Stations 25, 26, & 27, Fire Training Facility and Classroom Trailer,   Pump Stations 1, 2, 6, & 7,   BGGC & Arboretum Clubhouses, Halfway Houses, and Maintenance Buildings,   Train Station and Warming Shelters, and   Youth Center.    Village of Buffalo Grove 160 2013 Adopted Budget         Muni     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S       cipal Pa y:  Thi mu Cen mpact:  Thi d Amount  Actual  enditures  Category  Land  gineering  nstruction  quipment  ntingency  Sub‐Total  arking F s program p nicipal lots.   nter, Pace/Me s project is fu FY 2008  $42,750  $35,317  FY 2013      $74,100      $74,100    Facility M provides for  The 2013 p etra, and We unded throug 5 Year Ex FY 2009  $43,000 $47,327  5 Year Proj FY 2014 $91,000 $91,000 Mainten   the routine  lanned maint ll Houses 1, 2 h the Genera xpenditure His FY 2010  $359,000 $54,700  jected Expend FY 2015 $218,000 $218,000 Category:  Fund: Cap Account N Priority Sc Initial Pro Project Co nance sealing, rest tenance inclu 2, 6 & 7.    al Fund’s oper story FY 2011  $48,000 $50,000  ditures FY 2016 $169,000 $169,000 Buildings &  pital Projects Number: 150 core: 16 posal Date:  oordinator: P triping, and  udes lots at  rating revenu Estimat FY 201 $65,00 $65,00 FY 201     $49,00     $49,00 Grounds Im s ‐ Facilities  0.75.560.10    Ongoing  PW‐Enginee reconstructio the Public Se ues.    ted TO12  00 $557 00 $252 17 TO 00 $601 00 $601 mprovements ering  on of  ervice  OTAL  7,750 2,344  OTAL 1,100 1,100 s  Village of Buffalo Grove 161 2013 Adopted Budget         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 are in jeopardy.  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 residents, property, and environment.  The Village of Buffalo Grove has been a Tree City USA for over twenty years.  The trees in urban forest  provide many social and economic benefits which are often overlooked.  According to the USDA Forest  Service, some benefits of 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 calls for the removal and replacement of nearly 7,000 Village‐owned Ash trees  over the next 4 years.  The expenditures are being programmed in the Capital Improvement Plan due to  the size, scope, and duration of this natural disaster.  Village of Buffalo Grove 162 2013 Adopted Budget         EAB A   Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S   Ash Tree    y:  Ove due rem gro mpact:  Thi d Amount  Actual  enditures  Category  Land  gineering  nstruction $ quipment  ntingency  Sub‐Total $ Replace er the next 4  e to Emerald movals, stump owing contrac s project will  FY 2008  $     0  $     0  FY 2013      1,000,000      1,000,000  ement Pr years 7,000 A d Ash Borer p grinding, p ct for 4,300 tr be funded fro 5 Year Ex FY 2009  $      0 $      0  5 Year Proj FY 2014 $1,500,000 $1,500,000 rogram   Ash Trees wi r infestation. arkway resto rees.      om the revolv xpenditure His FY 2010  $       0 $       0  jected Expend FY 2015 $1,500,000 $1,500,000 Cate Fund Acco Prior Initia Proje ll need to be  .  The prog oration, 2,700 ving line of cr story FY 2011  $     0 $     0  ditures FY 2016 $500,000 $500,000 egory: Natur d: Capital Pro ount Numbe rity Score:  2 al Proposal D ect Coordina removed and gram will inc 0 tree purcha redit.  Estimat FY 201 $        0 $        0 FY 201     ‐      ‐  al Disasters  ojects ‐ Facil er: 150.75.56 22  Date: 2013  ator: Public  d replaced  clude tree  ases and a  ted TO12  0 $   0 $   17 TO $4,50 $4,50 lities  60.40  Works ‐ Ope OTAL     0    0  OTAL 00,000 00,000 erations  Village of Buffalo Grove 163 2013 Adopted Budget         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 jurisdictional break‐down of  streets in the Village 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 five years and recommendations for the next five years of  street projects are developed.  The projects involve traditional maintenance and rehabilitation of local  streets based upon a defined service life.  The defined service life is designed to maintain quality surface  conditions and avoid more costly roadway rebuilds.  Due to funding issues, since 2008 not all streets  identified for maintenance have been repaired.  Cuts in the program were necessary given the current  economic climate and funding limitation both internally, and from the State of Illinois.  The majority of  work to be performed during the 2013 construction season will be for the rehabilitation of street surface  and curb/gutter along various identified local streets.    The following streets are scheduled for repair in 2013:    Street Miles Street Miles Street Miles  Highland Grove Drive 0.77 Cobblestone Court 0.05 Meridian Way 0.12  Somerset Lane 0.19 Aberdeen Lane 0.16 Olive Hill Drive 0.29  Sunridge Lane 0.20 Aberdeen Court 0.04 Jordan Terrace 0.32  Wakefield Lane 0.13 Highland Grove Ct S. 0.03 Wright Boulevard 0.14  Wakefield Court 0.05 Woodridge Lane 0.13 Bank Lane 0.07  Pinehurst Lane 0.19 Chevy Chase Drive 0.35 Woodstone Drive 0.15  Fox Hill Drive 0.33 Columbus Parkway 0.21 Woodstone Court 0.09  Fox Court East 0.05 Prague Avenue 0.28 Brunswick Drive 0.08  Fox Court West 0.06 Marquette Place 0.14 Johnson Drive 1.52  Dunhill Drive 0.43 Linden Avenue 0.31 Hastings Lane/Drive 0.55  Newtown Court West 0.19 Buckingham Lane 0.20 Willow Parkway 1.50  Newtown Court East 0.05 Woodbury Road 0.07  Cobblestone Lane 0.26 Thorndale Drive 0.38 TOTAL 10.08      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  Village of Buffalo Grove 164 2013 Adopted Budget         Annu     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S                        1 While $5, reduced/d   al Stree y:  The CIP eva stre mpact:  The of h d Amount  $ Actual  enditures $ Category  Land  gineering $ nstruction $ quipment  ntingency  Sub‐Total $5                         ,9500,000 was eferred CIP pro et Main e annual stree .  In 2013,  aluation study eet maintena e Village’s per home rule sal FY 2008  2,990,000  2,914,130  FY 2013    $475,000  5,475,000      5,950,0001                        s requested, th ojects could be tenanc   et maintenan the Village  y of all Village nce and is ref rcentage of t es tax fund th 5 Year Ex FY 2009  $2,300,000 $2,243,128  5 Year Proj FY 2014 $425,000 $4,575,000 $5,000,000 e FY 2013 Bud e revisited mid e  nce and reha is also sche e streets.  Th flected in the he State’s Mo his project.  xpenditure His FY 2010  $2,679,045 $1,512,258  jected Expend FY 2015 $425,000 $4,575,000 $5,000,000 get includes $4 d‐year.  Category:  Fund:  Mo Account N Priority Sc Initial Pro Project Co bilitation pro eduled to pe is study will h e FY 2013 Proj otor Fuel Tax story FY 2011  $1,750,000 $1,207,750 ditures FY 2016 $425,000 $4,575,000 $5,000,000 4,750,000.  If r Street, Side otor Fuel Tax Number: 130 core: 19 posal Date:  oordinator: P ogram is cove erform a co help plan the jected Expen x, bond proce Estimat FY 201 0 $1,700,0 0 $3,408,2 FY 201   $425,00 0 $4,575,0     0 $5,000,0 revenues impr ewalk & Bike x  0.75.560.20    Ongoing  PW‐Enginee ered in each y mplete pave e next five ye ditures below eeds, and a po ted TO12  000 $11,4 226 $11,2 17 TO 00 $2,17 000 $23,7 000 25,95 ove,  e Path Maint ering  year’s  ement  ars of  w.  ortion  OTAL  19,045 85,492  OTAL 75,000 75,000 50,000 enance  Village of Buffalo Grove 165 2013 Adopted Budget         Dund     Summary   Budget Im   Budgeted Expe Expense  En Con Eq Con S     ee Roa y:  Thi Roa rou com Thi con out mpact:  Thi rev d Amount  Actual  enditures  Category  Land  gineering  nstruction  quipment  ntingency  Sub‐Total  d Stree s project inc ad corridor.   utes already  mmercial dist s project wa nstruction wil t will likely ca s project is fu enues.  FY 2008  $     0  $     0  FY 2013      $60,000      $60,000    tscape    ludes installa The propos in place alo ricts and num s included o l be substant rry over into  unded throug 5 Year Ex FY 2009  $16,000 $      0  5 Year Proj FY 2014 ‐ ‐ Improv ation of sidew ed sidewalk  ong Dundee  merous town  n IDOT’s Aug tially complet 2013.    gh an internal xpenditure His FY 2010  $650,211 $       0  jected Expend FY 2015 ‐ ‐ Category:  Fund: Cap Account N Priority Sc Initial Pro Project Co vement walk and mu locations we Road, prov parks.  gust 3, 2012  te in 2012 bu l transfer from story FY 2011  $634,212 $     0  ditures FY 2016 ‐ ‐ Street, Side pital Projects Number: 150 core: 19 posal Date:  oordinator: P ulti‐use path  ere selected  vide access t Letting.  It i t restoration  m the Genera Estimat FY 201 $101,0 $50,00 FY 201     ‐      ‐  ewalk & Bike s ‐ Facilities  0.75.560.10    2009  PW‐Enginee along the Du to complete to schools,  is anticipated and project  al Fund’s ope ted TO12  13 $1,40 00 $50 17 TO $60 $60 e Path Maint ering  undee  e bike  heavy  d that  close‐ rating  OTAL  01,436 0,000  OTAL 0,000 0,000 enance  Village of Buffalo Grove 166 2013 Adopted Budget         Raup     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S     p Boule y:  Thi imp sch fun Pro mpact:  Thi rev d Amount  Actual  enditures  Category  Land  gineering $ nstruction $ quipment  ntingency ($ Sub‐Total $ evard Br s project cove provements  eduled to be ding (80%) i ogram admini s project is fu enues.  FY 2008  $    0  $    0  FY 2013  $10,000  $160,000  $830,000    $800,000)  $200,000    ridge Re   ers the evalua to the Raup e completed i s provided b stered by the unded throug 5 Year Ex FY 2009  $    0 $    0  5 Year Proj FY 2014 ‐ ‐ ‐ ‐ ‐ C A econstr ation and sub pp Boulevard n 2012 with  by the Highw e USDOT Fede gh an internal xpenditure His FY 2010  $    0 $    0  jected Expend FY 2015 ‐ ‐ ‐ ‐ ‐ Category: St Fund: Capita Account Nu Priority Scor Initial Propo Project Coo ruction bsequent des d Bridge.  P Phase II read way Bridge Re eral Highway  l transfer from story FY 2011  $23,000 $41,469  ditures FY 2016 ‐ ‐ ‐ ‐ ‐ treet, Sidew al Projects ‐ mber: 150.7 re: 19  osal Date: 20 rdinator: PW sign and const Phase I desig dy to begin in eplacement a Administrati m the Genera Estimat FY 201 $32,00 ($19,52 FY 201 ‐  ‐  ‐    ‐  ‐  walk & Bike P Facilities  75.560.30  011  W‐Engineerin truction of ne gn engineeri n 2013.  Signi and Rehabilit on.  al Fund’s ope ted TO12  00 $55 24) $21 17 TO $10 $160 $830 ($800 $200 Path Mainten ng  eeded  ing is  ficant  tation  rating  OTAL  5,000 1,945  OTAL 0,000 0,000 0,000 0,000) 0,000 nance  Village of Buffalo Grove 167 2013 Adopted Budget         Annu     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S                        2 While $3 CIP project   al Sidew y:  Ann mpact:  Thi rev d Amount  $ Actual  enditures $ Category  Land  gineering  nstruction $ quipment  ntingency  Sub‐Total $                         25,000 was req ts could be rev walk/Bi nual sidewalk s project is fu enues.  FY 2008  $250,000  $255,759  FY 2013      $325,000      $325,0002                        quested, the FY visited mid‐yea ke Path   k and bike pat unded throug 5 Year Ex FY 2009  $150,000 $148,926  5 Year Proj FY 2014 $325,000 $325,000 Y 2013 Budget ar.  h Maint th maintenan gh an internal xpenditure His FY 2010  $150,000 $142,902  jected Expend FY 2015 $325,000 $325,000 t includes $100 Category:  Fund: Gen Account N Priority Sc Initial Pro Project Co enance nce and rehab l transfer from story FY 2011  $150,000 $149,964 ditures FY 2016 $325,000 $325,000 0,000.  If reven Street, Side neral Fund  Number: 100 core: 20 posal Date:  oordinator: P e  bilitation prog m the Genera Estimat FY 201 $325,00 $325,00 FY 201     $325,00     $325,00 nues improve, r ewalk & Bike 0.55.10.535.   Ongoing  PW‐ Enginee gram.    al Fund’s ope ted TO12  00 $1,02 00 $1,02 17 TO 00 $1,62 00 $1,62 reduced/defer epath Mainte 05  ering  rating  OTAL  25,000 22,551  OTAL 25,000 25,000 rred  enance  Village of Buffalo Grove 168 2013 Adopted Budget         Weila       Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S     and Roa y:  Lak reim Roa Dep exp are mpact:  Thi rev d Amount  $ Actual  enditures ($ Category  Land  gineering $ nstruction  quipment  ntingency  Sub‐Total $ ad/Prair ke County  mbursement  ad/Prairie Ro partment is  panding the st  being funded s project is fu enues.  FY 2008  $884,104  $141,377)  FY 2013    $100,452        $100,452    rie Road   Department  of the orig oad portion  paying 100% tudy along th d through an  unded throug 5 Year Ex FY 2009  $640,000 $356,448  5 Year Proj FY 2014 ‐ ‐ d Impro of Transp inal full stud of the Pha % of the su he Lake Cook  internal tran gh an internal xpenditure His FY 2010  $496,390 $361,579  jected Expend FY 2015 ‐ ‐ Category:  Fund: Cap Account N Priority Sc Initial Pro Project Co ovemen portation is  dy cost afte se I Study.  upplemental  Road Corrido nsfer from the l transfer from story FY 2011  $335,633 $136,255 ditures FY 2016 ‐ ‐ Street, Side pital Projects Number: 160 core: 25 posal Date:  oordinator: P t  to provid er completion  The Cook  expenses w or.  The rema e General Fun m the Genera Estimat FY 201 $234,05 $163,90 FY 201   ‐        ‐  ewalk & Bike s ‐ Streets  0.75.560.20    2008  PW‐Enginee de a perce n of the We County Hig which result  ining expend nd.      al Fund’s ope ted TO12  54 $2,59 02 $876 17 TO $100 $100 e Path Maint ering  ntage  eiland  ghway  from  itures  rating  OTAL  90,181 6,807  OTAL 0,452 0,452 enance  Village of Buffalo Grove 169 2013 Adopted Budget         Storm Sewer System  The Village of Buffalo Grove maintains a piped network of 180 miles of storm sewer and one storm  water lift station at Jackson Drive.  While most periodic maintenance and cleaning efforts are included in  the Public Works Drainage Section operating budget, system repairs are being included in the CIP due to  the size and scope of necessary repairs.    Repair locations are identified through the annual Storm Sewer Televising program.  The program allows  a televised inspection of 5 percent 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 in 2013 and repairs will be addressed in  order of priority.    It is anticipated that the storm sewer system repair program will be an ongoing need.  The storm repairs  are being scheduled every other year, opposite of the sanitary sewer repair program.    Village of Buffalo Grove 170 2013 Adopted Budget         Villag     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S                        3 While $30 CIP project   gewide S y:  Thi prio Tele alte mpact:  Thi rev d Amount  Actual  enditures  Category  Land  gineering  nstruction $ quipment  ntingency  Sub‐Total $                         00,000 was req ts could be rev Storm S s program p ority location evising Inspe ernating year s project is fu enues.  FY 2008  $   0  $   0  FY 2013      $300,000      $300,0003                        quested, the FY visited mid‐yea Sewer R   provides for  ns.  The loca ection Progra s, opposite of unded throug 5 Year Ex FY 2009  $   0 $   0  5 Year Proj FY 2014 ‐ ‐ Y 2013 Budget ar.  Repair P storm sewer ations are id m.  The Stor f the Sanitary gh an internal xpenditure His FY 2010  $   0 $   0  jected Expend FY 2015 $300,000 $300,000 t includes $200 Category:  Fund: Gen Account N Priority Sc Initial Pro Project Co Program r lining, poin entified thro rm Sewer Re y Sewer progr l transfer from story FY 2011  $   0 $   0  ditures FY 2016 ‐ ‐ 0,000.  If reven Storm Sewe neral Fund  Number: 100 core: 14 posal Date:  oordinator: P m  nt repairs, or ough the Ann epair Program ram.  m the Genera Estimat FY 201 $   0  $   0  FY 201     $300,00     $300,00 nues improve, r er   0.55.25.560.   2013  PW‐Enginee r replacemen nual Storm S m is schedule al Fund’s ope ted TO12  $  $  17 TO 00 $900 00 $900 reduced/defer 40  ering  nts at  Sewer  ed for  rating  OTAL    0   0  OTAL 0,000 0,000 rred  Village of Buffalo Grove 171 2013 Adopted Budget         Technology  The Village of Buffalo Grove’s Information Technology (IT) staff is responsible for maintenance of local  and wide area networks that facilitate effective interdepartmental communication among Village offices  and facilities.  The division currently maintains:   13 Servers   220+ Desktop and Mobile Workstations   Almost 100 Printers and Specialty Devices  The backbone of the Village’s data systems is a redundant wide area network comprised of fiber optic  cable and secure wireless transmission.  This network links the data systems of three fire stations, two  golf courses, Police headquarters, Public Works, and Village Hall.    Several technology upgrades are being requested for 2013 which will strengthen both the distribution  and maintenance of data throughout the Village.    In addition to the Villagewide IT initiatives, Public Works is also requesting specific technology programs  for Geographical Information Systems (GIS) and Computerized Maintenance Management Systems  (CMMS).    Technology is a key part of the Village’s vision and mission and that is reflected in this year’s CIP  requests.  Village of Buffalo Grove 172 2013 Adopted Budget         Docu         Summary Budget Im     Budgeted Expe Expense  En Con Eq Con S     ment M y:  Thi doc mpact:  Thi rev d Amount  Actual  enditures  Category  Land  gineering  nstruction  quipment  ntingency  Sub‐Total  Manage s project wil cument mana s project is fu enues.  FY 2008  $     0  $     0  FY 2013        $45,000    $45,000    ment So   l allow emp agement.      unded throug 5 Year Ex FY 2009  $      0 $      0  5 Year Proj FY 2014 ‐ ‐ olution  loyees to sca gh an internal xpenditure His FY 2010  $       0 $       0  jected Expend FY 2015 ‐ ‐ Category: Fund: Cap Account N Priority Sc Initial Pro Project Co      an and organ l transfer from story FY 2011  $     0 $     0  ditures FY 2016 ‐ ‐  Technology ital Projects Number: 150 core: 21 posal Date:  oordinator: O nize docume m the Genera Estimat FY 201 $        0 $        0 FY 201       ‐    ‐  y  s ‐ Facilities  0.75.560.50    2012  OVM‐Inform ents for long  al Fund’s ope ted TO12  0 $   0 $   17 TO $45 $45 mation Techn term  rating  OTAL     0    0  OTAL 5,000 5,000 nology  Village of Buffalo Grove 173 2013 Adopted Budget         GIS C                      Summary Budget Im Budgeted Expe Expense  Staffing/En Con Eq Con S     onsorti y:  Join and hou to f pre wh sav stre mpact:  Thi rev d Amount   $  Actual  enditures  $  Category  Land  gineering $ nstruction  quipment  ntingency  Sub‐Total $ um  ning the GIS C d developmen use staff wou fit organizati esented below ich provides s vings will be r eamlined with s project is fu enues.  FY 2008      0    $     0  $ FY 2013    $127,572    $25,425    $152,997      Consortium w nt tools throu ld be realized onal needs w w are based  savings in har ealized as im h input from  unded throug 5 Year Ex FY 2009  $      0  $      0  5 Year Proj FY 2014 $133,951 $7,561 $141,512 would give th ugh a cooper d as the Villag without hiring on the Rem rdware and s plementation professionals gh an internal xpenditure His FY 2010  $       0   $       0  jected Expend FY 2015 $140,648 $7,495 $148,143 Categor Fund: C Accoun Priority Initial P Project  he Village of B ative, regiona ge would onl g additional mote Access S oftware costs n of a GIS sys s who special l transfer from story FY 2011  $     0   $     0   ditures FY 2016 $147,680 $7,175 $154,855 ry: Technolo Capital Proje nt Number: 1 y Score: 19 Proposal Dat Coordinato Buffalo Grove al consortium y pay partial  employees.   Service GIS C s for the Villa tem will be f ize specificall m the Genera Estimat FY 201 $        0    $        0   FY 201   $155,06   $7,308   $162,37 ogy   cts ‐ Facilitie 150.75.560.5   te: 2013  or: PW‐Engin e access to st m.  Savings ov staff salaries The expend Consortium M age.  Finally, a ully schedule ly in GIS.    al Fund’s ope ted TO12   $     0  $     0 17 TO 64 $704 8 $54 72 $759 es  50  neering  taffing  ver in‐ s sized  itures  Model  a time  d and  rating  OTAL       OTAL 4,915 4,964 9,879 Village of Buffalo Grove 174 2013 Adopted Budget         Upgra         Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S     ade Wir y:  Thi new rem mpact:  Thi rev d Amount  Actual  enditures  Category  Land   gineering  nstruction  quipment  ntingency  Sub‐Total  reless N s project will w base anten mote building s project is fu enues.  FY 2008  $     0  $     0  FY 2013    $15,000  $7,000  $32,000    $54,000    Network   l upgrade the nna system  s.        unded throug 5 Year Ex FY 2009  $      0 $      0  5 Year Proj FY 2014 ‐ ‐ ‐ ‐ k ‐ Build e current 5 y at Village Ha gh an internal xpenditure His FY 2010  $       0 $       0  jected Expend FY 2015 ‐ ‐ ‐ ‐ Category: Te Fund: Capita Account Nu Priority Sco Initial Propo Project Coo   ding to B year old wire all and upgra l transfer from story FY 2011  $     0 $     0  ditures FY 2016 ‐ ‐ ‐ ‐ echnology  al Projects ‐ umber: 150.7 re: 21  osal Date: 20 ordinator: OV Building less network ade the data m the Genera Estimat FY 201 $        0 $        0 FY 201 ‐  ‐  ‐    ‐  Facilities  75.560.50  012  VM‐Informa g  k.  It will prov a connection al Fund’s ope ted TO12  0 $   0 $   17 TO   $15 $7, $32 $54 tion Techno vide a  n at 9  rating  OTAL     0    0  OTAL 5,000 ,000 2,000 4,000 ology  Village of Buffalo Grove 175 2013 Adopted Budget         Water Main & Sanitary Sewer Systems  The Village of Buffalo Grove’s oldest water main was constructed in 1929 with the majority,  approximately 50 percent, 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 Road water main replacement.  In the previous five year period since  2008, there has been $1,997,566 expended related to water system replacements and improvements.  The Village of Buffalo Grove’s sanitary sewer system is a combination of gravity lines, force mains, and  lift stations.  There are 134.20 miles of gravity sewer and 5.07 miles of force main.  Currently, there are  12 sanitary sewer lift stations in operation (6 in Cook County and 6 in Lake County).    All municipal waste is conveyed through village‐owned and maintained sanitary sewer mains.  The  wastewater is then routed to either Lake County Public Works or Metropolitan Water Reclamation  District (Cook County).    Expenditures in this category historically include repairs and reliability enhancements to the water and  wastewater systems.      Village of Buffalo Grove 176 2013 Adopted Budget         Lift St     Summary   Budget Im   Budgeted Expe Expense  En Con Eq Con S     tation R y:  Thi the req pro pai A W to h mpact:  Thi d Amount  $ Actual  enditures  Category  Land  gineering  nstruction $ quipment  ntingency  Sub‐Total $ Repair & s program pr e Raupp, OTP quired work id otection syste nting.   Water Pollutio help fund the s program is f FY 2008  $300,000  $   0  FY 2013    $30,000  $750,000      $780,000    & Rehab   rovides for p P and Cambr dentified at o em renovatio on Control Lo e OTP/COTL p funded by the 5 Year Ex FY 2009  $300,000 $669,606  5 Year Proj FY 2014 $30,000 $500,000 $530,000 bilitatio permanently  idge on the  other lift stati ons, mainten an through th roject.     e Water & Se xpenditure His FY 2010  $300,000 $133,455  jected Expend FY 2015 $30,000 $270,000 $300,000 Category:  Fund: Wat Account N Priority Sc Initial Pro Project Co n Progr installed stan Lake Lift Sta ons, such as  nance lift rep he IEPA was a ewer Fund Re story FY 2011  $300,000 $290,000 ditures FY 2016 $30,000 $270,000 $300,000 Water Main ter & Sewer  Number: 170 core: 21 posal Date:  oordinator: P ram  ndby emerge ations and w condition eva pairs, and co authorized at serves.  Estimat FY 201 $300,00 $150,00 FY 201   $30,00 $270,00     $300,00 n & Sanitary  Fund  0.55.36.560.   2001  Public Work ency generato ill complete  aluations, cat ontractual in t $531,000 in ted TO12  00 $1,50 00 $1,24 17 TO 00 $150 00 $2,06 00 $2,21 Sewer  70  ks  ors at  other  thodic  terior   2012  OTAL  00,000 43,061  OTAL 0,000 60,000 10,000 Village of Buffalo Grove 177 2013 Adopted Budget         Pump Summary   Budget Im   Budgeted Expe Expense  En Con Eq Con S     p House y:  Thi Com ma The thro sub It is will ver mpact:  Thi d Amount  Actual  enditures  Category  Land  gineering  nstruction $ quipment  ntingency  Sub‐Total $ e & Secu s program i mprehensive  ndated vulne e IEPA has in ough the P bstantially com s anticipated  l occur in 201 sus the lump s program is f FY 2008  $     0  $     0  FY 2013      $610,318      $610,318    urity Im   ncorporates  Water Study erability study formed the V ublic Water  mplete and b that construc 13.  If the loan  sum shown i funded by the 5 Year Ex FY 2009  $      0 $      0  5 Year Proj FY 2014 ‐ ‐ mprovem pump hous y Update and y.    Village that $ Supply Loa bidding will o ction may be n is approved in the table b e Water & Se xpenditure His FY 2010  $       0 $       0  jected Expend FY 2015 ‐ ‐ Category: W Fund: Wate Account Nu Priority Sco Initial Prop Project Coo ments  se repair pro d improveme $610,318 in l an Program.  occur in accor egin late in 20 d, the paymen below.  ewer Fund Re story FY 2011  $600,000 $44,505.06 ditures FY 2016 ‐ ‐ Water Main  er & Sewer umber: 170. ore: 19  posal Date: 2 ordinator: P ojects identi ents identifie oan funds ha  The desig rdance with t 012 but that m nt schedule w serves.  Estimat FY 201 $600,00 6 $100,00 FY 201     ‐      ‐  & Sanitary S .55.35.560.6 2010  W‐Engineer ified in the  ed in the fed ave been res gn engineeri the loan sche most expend would be exte ted TO12  00 $1,20 00 $144, 17 TO $610 $610 Sewer  60  ring  2008  derally  erved  ing is  edule.   itures  ended  OTAL  00,000 505.06  OTAL 0,318 0,318 Village of Buffalo Grove 178 2013 Adopted Budget         SCAD     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S     DA Impro y:  Imp Pla mpact:  Thi d Amount  Actual  enditures  Category  Land  gineering  nstruction  quipment  ntingency  Sub‐Total  ovemen plement reco n.  The numb s program is f FY 2008  $     0  $     0  FY 2013        $70,000  $7,000  $77,000    nts    ommended im bers also inclu funded by the 5 Year Ex FY 2009  $      0 $      0  5 Year Proj FY 2014 $78,000 $7,800 $85,800 mprovements ude rain gauge e Water & Se xpenditure His FY 2010  $       0 $       0  jected Expend FY 2015 $94,000 $9,400 $103,400 Category:  Fund: Wat Account N Priority Sc Initial Pro Project Co s as detailed e upgrades in ewer Fund Re story FY 2011  $     0 $     0  ditures FY 2016 $60,000 $6,000 $66,000 Technology ter & Sewer Number: 170 core: 16 posal Date:  oordinator:   in the SCAD n 2013.     serves.  Estimat FY 201 $        0 $        0 FY 201       ‐  ‐  ‐  y  0.55.35.560.   2012  Public Work DA System M ted TO12  0 $   0 $   17 TO $302 $30 $332 60  ks   Master  OTAL     0    0  OTAL 2,000 0,200 2,200 Village of Buffalo Grove 179 2013 Adopted Budget         Villag     Summary Budget Im   Budgeted Expe Expense  En Con Eq Con S     gewide S y:  Thi prio Tele Wh futu mpact:  Thi d Amount  Actual  enditures  Category  Land  gineering  nstruction  quipment  ntingency  Sub‐Total  Sanitary s program p ority location evising Inspec hile 2013 is an ure planning  s program is f FY 2008  $   0  $   0  FY 2013      ‐      ‐    y Sewer   rovides for s ns.  The locat ction Program n off‐year for purposes.  funded by the 5 Year Ex FY 2009  $   0 $   0  5 Year Proj FY 2014 $700,000 $700,000 r Replac sanitary sewe tions are ide m.    r this work, th e Water & Se xpenditure His FY 2010  $   0 $   0  jected Expend FY 2015 ‐ ‐ Category:  Fund: Wat Account N Priority Sc Initial Pro Project Co cement er lining, poi entified throu his item is inc ewer Fund Re story FY 2011  $   0 $   0  ditures FY 2016 $700,000 $700,000 Water Main ter & Sewer  Number:  170 core: 14 posal Date:  oordinator: P t Progra nt repairs, o ugh the Annu cluded in the  serves.  Estimat FY 201 $650,00 $450,00 FY 201     ‐      ‐  n & Sanitary  Fund  0.55.36.560   2012  PW‐Enginee am  r replacemen ual Sanitary S 2013‐2017 C ted TO12  00 $650 00 $450 17 TO $1,40 $1,40 Sewer  .70  ering  nts at  Sewer  CIP for  OTAL  0,000 0,000  OTAL 00,000 00,000 Village of Buffalo Grove 180 2013 Adopted Budget         Villag     Summary   Budget Im Budgeted Expe Expense  En Con Eq Con S     gewide W y:  Thi por In  Mo St.  ord pro the com mpact:  Thi d Amount  Actual  enditures  Category  Land  gineering  nstruction $ quipment  ntingency  Sub‐Total $ Water M s program p rtions of the V 2012, three  ohawk), Patto Mary’s) and  der to allow  ojects, a singl e water main mpletion in 20 s program is f FY 2008  $   0  $   0  FY 2013    $15,000  $300,000    $30,000  $345,000    Main Re   rovides for w Village as iden priority loc on Drive (Brad are proposed the water ra e location is  ns: Cottonwo 014.  funded by the 5 Year Ex FY 2009  $   0 $   0  5 Year Proj FY 2014 $30,000 $845,000 $84,500 $959,500 eplacem water main r ntified throug cations were dley to Stillw d to be rehab ate increases  proposed fo ood Road.  T e Water & Se xpenditure His FY 2010  $   0 $   0  jected Expend FY 2015 ‐ $700,000 ‐ $700,000 Category:  Fund: Wat Account N Priority Sc Initial Pro Project Co ment Pr replacements gh the Water  e identified  well), and Cott bilitated using to provide  r 2013 to reh The other tw ewer Fund Re story FY 2011  $   0 $   0  ditures FY 2016 ‐ ‐ ‐ ‐ Water Main ter & Sewer  Number: 170 core: 14  posal Date:  oordinator: P rogram  s at priority   Service Inter on Raupp B tonwood Roa g cured‐in‐pla sufficient cap habilitate the wo locations  serves.  Estimat FY 201 $160,00 $160,00 FY 201   ‐  $700,00   ‐  $700,00 n & Sanitary  Fund  0.55.35.560. 2012  PW‐Enginee locations in  rruption Repo Blvd (Golfvie ad (Cherrywo ace‐pipe (CIP pital for iden e most troub are propose ted TO12  00 $160 00 $160 17 TO $45 00 $2,54 $114 00 $2,70 Sewer  60  ering  older  orts.      ew to  ood to  P).  In  ntified  led of  ed for  OTAL  0,000 0,000  OTAL 5,000 45,000 4,500 04,500 Village of Buffalo Grove 181 2013 Adopted Budget         Reserve for Capital Replacement – Vehicles  The Village maintains unique sets of capital equipment for six divisions; Police, Fire, Public Works,  Engineering, Building and Zoning/Code Enforcement, and Golf Operations.  When a vehicle or piece of  equipment is acquired, a projected life span is assigned and amortization costs are calculated based on  past performance of vehicles or equipment of similar class that are in current inventory.  Additionally,  vehicles and equipment are assessed on an annual basis to determine whether the projected  replacement date is reasonable and units which evaluate favorably for condition, operational need, cost  of operation/maintenance, equipment suitability and parts availability can be deferred beyond the  original replacement date projections.  The Village maintains a capital replacement fund with the intent to fund the amortization on each  vehicle.  Ideally, when vehicles are scheduled for replacement the replacement cost will be fully funded  with available money.  Since 2009, vehicle amortization has not been funded due to budget constraints.  The 2013 budget includes $415,000 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, $6.9 million  is in the reserve account and the table below shows the projected replacement costs through 2019.  It is  important that the reserve be funded in order to minimize impact to future budgets.    Finally, the Village Board's approval of the funding reserve does not authorize spending for equipment  replacement.  Each replacement vehicle or equipment purchase must go through the procurement  process including Board authorization to bid and Board award of bid.  This ensures that the procurement  remains consistent with the budget and that identified funding is available at the time of purchase.  Department 2013 2014 2015 2016 2017 2018 SubTotal  Fire Services $75,284 $75,367 $226,524 $147,521 $144,794 $1,016,522 $1,777,625  Police Services $122,249 $568,459   $27,238      $717,946  Building & Zoning   $40,261   $21,727   $61,915 $143,343  Engineering   $72,186 $28,706         $130,477  Building  Maintenance $16,152 $739,543 $16,717   $17,915   $861,283  Street Maintenance   $665,136 $10,000 $119,838 $201,314   $1,415,859  Forestry & Grounds   $630,465   $164,167   $187,927 $1,116,198  E.M.A.     $160,000         $160,000  Water    $375,809 $10,000   $87,360 $138,731 $801,825  Sanitary Sewer   $221,841   $15,768 $1,693 $56,648 $757,612  Storm Sewer   $65,005         $80,889  Central Garage     $53,726 $134,007      $72,121 $259,854  Buffalo Grove Golf  Club   $253,346 $26,519 $4,232   $59,246 $343,343  Arboretum Golf  Course   $53,550 $121,634 $21,887 $79,009 $165,860 $461,733  TOTALS $213,685 $3,814,694 $734,107 $522,378 $532,085 $1,758,970 $9,027,987    Village of Buffalo Grove 182 2013 Adopted Budget         The follow Equipmen     The graph 43 percen The large  vehicle pu     wing graph pr nt assuming a h below chart nt of current v decrease in r urchases.   $ $1,000,00 $2,000,00 $3,000,00 $4,000,00 $5,000,00 $6,000,00 $7,000,00 $8,000,00 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2 rojects the ba a yearly fundi ts total replac vehicle and e reserve balan $0 00 00 00 00 00 00 00 00 2012 Projecte 2012 201 Pr alance of the  ng level of $4 cement cost a quipment inv nce in 2014 as 2013 20 ed Fund  Equ 132014 rojected Reserve for C 400,000.  against the ca ventory has b ssumes a repl 014 2015 Balance uipment 2015 d Funding Capital Replac apital reserve been deferred lacement of a 2016 e ‐Vehi c t 2016 2 g Ratio cement for Ve e fund balance d for replacem all deferred e 2017 201 cles &  2017 201 ehicles and    e.  Approxima ment as of 20 quipment an   18 8 ately  12.   d  Village of Buffalo Grove 183 2013 Adopted Budget         Criteria List and Scoring Matrix  Criteria Number 0 1 2  Consistency with  Village Goals and  Plans  1  Project is inconsistent with Village's  Comprehensive Plan or does  nothing to advance Strategic Goals  Project is consistent with Village's  Comprehensive Plan but does little  to advance Strategic Goals  Project is directly consistent with  the Village's Comprehensive Plan  and advances the Strategic Goals  Public Health and  Safety 2  Project would have no impact on  existing public health and/or safety  concerns  Project would increase public  health and/or safety but is not an  urgent, continual need or hazard  Project addresses an immediate,  continual safety hazard or public  health and/or safety need  Mandates or  Other  Legal Requirements 3  Project is not mandated or  otherwise required by intergovern‐ mental agreement, judgment, or  court order  Project would address anticipated  mandates, other legal  requirements, or  intergovernmental agreements  Project required by federal, state,  or local mandates, grants, court  orders and judgments; required as  a part of an intergovernmental  agreement  Maintains or  Improves Standard  of Service  4  Project not related to maintaining  an existing standard of service  Project would maintain existing  standard of service  Project would address deficiencies  or problems with existing services  or will establish a new service  Extent of Benefit 5  Project would benefit only a small  percentage of citizens or particular  neighborhood or area  Project would benefit a large  percentage of citizens or many  neighborhoods or regions  Project would benefit the entire  community  Relation to Other  Projects 6  Project is not related to other  projects in the Capital  Improvement Plan   Project linked to other projects in  the Capital Improvement Plan  already underway but not essential  to their completion  Project is essential to the success of  other projects identified in the  current Capital Improvement Plan  Public Perception of  Need 7  Project has no public support or  established voter appeal; is not  identified by the community as a  need  Project has been identified by the  residents as a need in the  community but lacks strong  support  Project has strong technical and  strong political support, project was  suggested or demanded by the  community  Efficiency of Service 8  Project would have no impact on  the efficiency of service  Project would result in savings by  eliminating obsolete or inefficient  services or facilities  Project would result in significant  savings by increasing the efficiency  of the performance of a service or  reducing the on‐going cost or  service of a facility  Supports  Economic  Development 9  Project would discourage or directly  prevent capital investment,  decrease the tax base, decrease  valuation, or decrease job  opportunities  Project would have no impact on  capital investment, tax base,  valuation, or employment  Project would directly result in  capital investment, increased tax  base, increased valuation, or  improved job opportunities  Environmental  Quality 10  Project would have a negative  effect on the environmental quality  of the Village  Project would not effect the  environmental quality of the Village  Project would improve the  environmental quality of the Village  Feasibility of Project 11  Project is unable to proceed due to  obstacles (land acquisition,  easements, environmental)  Minor obstacles exist, project is not  entirely ready to proceed  Project is entirely ready to proceed,  no obstacles exist  Opportunity Cost 12  If deferred, the increase in project  costs would be less than the rate of  inflation  If deferred, the increase in project  costs would be equal to inflation  If deferred, the increase in project  costs would be greater than the  rate of inflation  Operational Budget  Impact 13  Project would significantly increase  debt service, installment payments,  personnel or other operating costs  or decrease revenues  Project would neither increase or  decrease debt service, installment  payments, personnel, or other  operating costs or revenues  Projects would decrease debt  service, installment payments,  personnel or other operating costs  or increase revenues    Village of Buffalo Grove 184 2013 Adopted Budget 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.  In FY 2013, emphasis will be directed towards engineering and construction recommended  for work in 2013. 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.      Village of Buffalo Grove 185 2013 Adopted Budget Revenue Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Fund: 130 - Motor Fuel Tax Fund Revenues 15 - Other Taxes 410.60 Motor Fuel Tax 1,096,794 1,060,719 985,530 1,005,587 1,000,000 15 - Other Taxes 1,096,794 1,060,719 985,530 1,005,587 1,000,000 Percent Change 2013 vs. 2012 Budget 1.47% 45 - Interest Income 450.10 Investment Pool 50 228 200 - - 45 - Interest Income 50 228 200 - - Percent Change 2013 vs. 2012 Budget -100.00% 50 - Miscellaneous Revenue 465.65 Grants - (187,582) - - - 465.90 Miscellaneous Income 675,596 375,164 187,582 187,582 187,582 470 Bond Proceeds - - - 6,000,000 - 50 - Miscellaneous Revenue 675,596 187,582 187,582 6,187,582 187,582 Percent Change 2013 vs. 2012 Budget 0.00% 55 - Operating Transfers 460.05 Interfund Transfers In 507,605 615,284 608,820 608,994 - 55 - Operating Transfers 507,605 615,284 608,820 608,994 - Percent Change 2013 vs. 2012 Budget -100.00% Revenues Total 2,280,045 1,863,813 1,782,132 7,802,163 1,187,582 Percent Change 2013 vs. 2012 Budget -33.36% Expense Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Expenditures Department: 75 - Capital Improvement 55 - Capital Outlay 560.20 Streets & Highways 1,512,379 1,259,292 1,700,000 1,700,000 4,750,000 55 - Capital Outlay 1,512,379 1,259,292 1,700,000 1,700,000 4,750,000 Percent Change 2013 vs. 2012 Budget 179.41% 65 - Other Financing Uses 570.30 Debt Service Fund - - 600,000 600,000 - 65 - Other Financing Uses - - 600,000 600,000 - Percent Change 2013 vs. 2012 Budget -100.00% Expenditures Total 1,512,379 1,259,292 2,300,000 2,300,000 4,750,000 Percent Change 2013 vs. 2012 Budget 106.52% Village of Buffalo Grove 186 2013 Adopted Budget 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 2013 portion of  the Village’s comprehensive Capital Improvement Plan for the FY 2013 through FY 2017. Funding will come from  several sources, most notably the transfer of prior accumulations of unreserved Corporate Fund Balance and  Water and Sewer Fund equity as authorized under current Village use policies.      Village of Buffalo Grove 187 2013 Adopted Budget Revenue Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Fund: 150 - Facilities Fund Revenues 45 - Interest Income 450.05 Savings - - - - - 450.10 Investment Pool 300 63 - - - 45 - Interest Income 300 63 - - - Percent Change 2013 vs. 2012 Budget 0.00% 50 - Miscellaneous Revenue 465.90 Miscellaneous Income 2,688,440 17,559 - - 1,000,000 50 - Miscellaneous Revenue 2,688,440 17,559 - - 1,000,000 Percent Change 2013 vs. 2012 Budget 0.00% 55 - Operating Transfers 460.05 Interfund Transfers In 512,160 371,070 412,013 620,000 586,097 55 - Operating Transfers 512,160 371,070 412,013 620,000 586,097 Percent Change 2013 vs. 2012 Budget 42.25% Revenues Total 3,200,900 388,692 412,013 620,000 1,586,097 Percent Change 2013 vs. 2012 Budget 284.96% Expense Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Expenditures Department: 75 - Capital Improvement 55 - Capital Outlay 560.10 Land Improvements 2,135,655 93,096 101,013 50,000 134,100 560.20 Streets & Highways 26,084 (7,716) - - - 560.30 Buildings & Structures 280,745 (6,077) 246,000 295,000 200,000 560.40 Improvements Other Than Building 54,700 50,000 65,000 65,000 1,000,000 560.50 Technology - 247,250 - 210,000 251,997 55 - Capital Outlay 2,497,184 376,553 412,013 620,000 1,586,097 Percent Change 2013 vs. 2012 Budget 284.96% Expenditures Total 2,497,184 376,553 412,013 620,000 1,586,097 Percent Change 2013 vs. 2012 Budget 284.96% Village of Buffalo Grove 188 2013 Adopted Budget 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 2013 through FY 2017.  Proceeds for the street maintenance fund are  funded through the following bond issues:  Series 2012 and Series 2003 plus certain of the proceeds from the  Corporate Purpose General Obligation Bonds‐Series 1995.   Village of Buffalo Grove 189 2013 Adopted Budget Revenue Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Fund: 160 - Streets Fund Revenues 45 - Interest Income 450.10 Investment Pool 765 196 400 100 100 45 - Interest Income 765 196 400 100 100 Percent Change 2013 vs. 2012 Budget -75.00% 50 - Miscellaneous Revenue 465.90 Miscellaneous Income - 158,285 134,533 - - 50 - Miscellaneous Revenue - 158,285 134,533 - - Percent Change 2013 vs. 2012 Budget -100.00% 55 - Operating Transfers 460.05 Interfund Transfers In - - 600,000 600,000 - 55 - Operating Transfers - - 600,000 600,000 - Percent Change 2013 vs. 2012 Budget -100.00% Revenues Total 765 158,481 734,933 600,100 100 Percent Change 2013 vs. 2012 Budget -99.99% Expense Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Expenditures Department: 75 - Capital Improvement 55 - Capital Outlay 560.20 Streets & Highways 319,003 1,134,372 1,048,247 400,860 100,452 55 - Capital Outlay 319,003 1,134,372 1,048,247 400,860 100,452 Percent Change 2013 vs. 2012 Budget -90.42% Expenditures Total 319,003 1,134,372 1,048,247 400,860 100,452 Percent Change 2013 vs. 2012 Budget -90.42% Village of Buffalo Grove 190 2013 Adopted Budget  Se   Enter Golf Cou Water an Refuse F                                     ecti rprise F rse Fund  nd Sewer Op und  ion und Su perating   7 mmaryy and Deetail  Village of Buffalo Grove 191 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 192 2013 Adopted Budget Golf 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. To accomplish the above tasks, the following programs are required to be performed: 1. Golf course maintenance and operations 2. Departmental administration 3. Club house operations 4. Facilities planning Department Structure Village Manager Golf Operations Buffalo Grove Golf Course Pro Shop Maintenance Arboretum Golf Course Pro Shop Maintenance Village of Buffalo Grove 193 2013 Adopted Budget 2012 Accomplishments Arboretum: 1. Increased Total Green Fees by 4 percent to $725,000 versus $698,000 as of October 1. 2. Coupon Sales increased by 20 percent to $42,700 versus $35,575 as of October 1. 3. Increased paid rounds by 5 percent to 24,435 versus 23,223. Buffalo Grove Golf Course: 1. Increased Total Green Fees by 4 percent to $684,700 (estimate) versus $666,500 in 2011. 2. Implemented Golf Now tee sheet technologies which generated a new customer base and over $20,000 in green fee revenues in a 4 month span (July - October). 3. Increased paid rounds by 6 percent to $32,350 (estimate) versus $30,600 in 2011. 4. Developed and promoted a successful text marketing club with over 225 members. Results included a $2,200.00 increase in green fee revenues at slower time periods on the tee sheet. 2013 Goals In addition to the normal operating goals managed within each department; this fiscal year, all departments have goals related to the implementation of the strategic plan. Inventory and prioritize all departmental services and categorize as core or non-core. Participate in the establishment of the Village-wide Comprehensive Training Program. Review and revise departmental fee and fine structure. Assess future plans for Buffalo Grove Golf Club property and potential impact on operations. Review departmental fleet to determine need and future replacement necessity. Village of Buffalo Grove 194 2013 Adopted Budget 2013 Staffing Summary There are no programmed staffing changes. The Director of Golf Operations retired in late-2012 under the Voluntary Separation Incentive program and the resulting recruitment and selection process for the position has been deferred until mid-2013 FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Assistant Director of Golf Operations 1 0 1 0 1 0 Assistant Golf Professional 1 0 1 0 1 0 Assistant Golf Professional 0 2 0 2 0 2 Director of Golf Operations 1 0 1 0 1 1 Golf Course Attendant - Seasonal 0 15 0 15 0 15 Golf Course Cashier - Seasonal 0 9 0 9 0 9 Golf Course Maintenance Worker 0 1 0 1 0 1 Golf Course Maintenance Worker – Seasonal 0 14 0 14 0 14 Golf Course Maintenance Worker II 0 0 1 0 1 0 Golf Course Maintenance Worker III 1 0 1 0 1 0 Golf Course Starter/Ranger – Seasonal 0 11 0 11 0 11 Golf Course Superintendent 1 0 1 0 1 0 Golf Course Supervisor 1 0 0 0 0 0 Had Golf Professional 1 0 1 0 1 0 Horticulturist 1 0 1 0 1 0 Total 8 52 8 52 8 53 Full & Part-Time Total 60 60 61 Village of Buffalo Grove 195 2013 Adopted Budget Buffalo Grove Golf FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 579,403 502,000 557,108 Personal Benefits 183,369 163,700 178,500 Operating Expenses 201,040 166,901 144,100 Contractual Services 1,600 10,800 10,800 Repairs and Maintenance 119,490 113,336 127,000 Capital Equipment 47,921 24,000 39,000 Commodities 127,033 129,301 130,000 All Other Expenses 33,040 1,200 500 Other Uses - 54,450 24,060 Total 1,292,896 1,165,688 1,211,068 0 200000 400000 600000 800000 1000000 1200000 1400000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Buffalo Grove Golf Village of Buffalo Grove 196 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 180 ‐ Buffalo Grove Golf Fund Revenues 40 ‐ Charges for Services 445.10 Greens Fees 716,818      650,833      770,000      715,000        725,000       445.15 Power Cart Rental 152,595      121,245      150,000      150,000        175,000       445.20 Pull Cart Rental 5,839          4,660          5,000          4,000            5,000           445.25 Driving Range Fees 64,948        51,393        70,000        55,000          65,000         445.30 Memberships & Passes 81,807        81,762        85,000        70,000          80,000         445.35 Merchandise Sales 68,230        65,637        70,000        70,000          70,000         445.40 Sales Tax 6,701          5,899          7,000          7,000            7,000           445.50 GPS Income 17,141        13,935        20,000        20,000          ‐               445.55 Club Rental Fees 1,441          795             1,000          1,200            1,500           445.56 Locker Room Rental 150             225             300             100               200              445.57 Club Storage 425             395             400             425               500              445.60 Rental Income Facility 38,227        64,739        65,000        65,000          40,000         445.65 Rental Income Cell Tower ‐              ‐              ‐              ‐                27,000         445.70 Utility Reimbursement 4,755          11,341        15,000        10,000          15,000         445.90 Other Revenue 1,468          5,653          ‐              ‐                ‐               40 - Charges for Services 1,160,545 1,078,512 1,258,700 1,167,725 1,211,200 Percent Change 2013 vs. 2012 Budget ‐3.77% 45 ‐ Interest Income 450.05  Savings (314)            (471)            ‐              ‐                ‐               450.10 Investment Pool ‐              ‐              ‐              ‐                ‐               45 - Interest Income (314) (471) - - - Percent Change 2013 vs. 2012 Budget 0.00% 50 ‐ Miscellaneous Revenue 465.90 Miscellaneous Income ‐              ‐              1,000          ‐                ‐               50 - Miscellaneous Revenue - - 1,000 - - Percent Change 2013 vs. 2012 Budget ‐100.00% 55 ‐ Operating Transfers 460.05 Interfund Transfers In 215,000      184,000      ‐              ‐                ‐               55 - Operating Transfers 215,000 184,000 - - - Percent Change 2013 vs. 2012 Budget 0.00% Revenues Total 1,375,231 1,262,041 1,259,700 1,167,725 1,211,200 Percent Change 2013 vs. 2012 Budget ‐3.85% Village of Buffalo Grove 197 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Expenditures Department: 84 ‐ Golf 10 ‐ Salaries 500.05 Full Time 321,600      301,553      287,395      270,000        284,108       500.10 Part Time 166,167      135,474      134,640      100,000        158,000       500.15 Seasonal 84,642        116,142      93,840        105,000        86,000         500.35 Overtime 24,144        22,434        24,480        24,000          27,000         500.40 Longevity 3,800          3,800          3,000          3,000            2,000           10 - Salaries 600,353 579,403 543,355 502,000 557,108 Percent Change 2013 vs. 2012 Budget 2.53% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 65,672        67,122        64,748        64,000          64,500         505.10 Professional Training 401              ‐              1,000          700               1,000           505.15 Dues & Memberships 3,156          2,059          3,200          3,200            3,200           505.25 Uniform Maintenance 3,773          3,887          3,500          1,200            3,000           505.35 Safety Equipment 799             24                1,000          800               1,000           505.45 ICMA Deferred Compensation 2,843          2,036          1,800          1,800            ‐               505.80 Employer's Contribution ‐ IMRF 114,164      108,241      97,085        92,000          105,800       15 - Taxes and Benefits 190,808 183,369 172,333 163,700 178,500 Percent Change 2013 vs. 2012 Budget 3.58% 25 ‐ Operating Expenses 510.02 Telephone 4,687          5,061          4,500          4,000            4,000           510.03 Postage9                  102             150             100               100              510.04 Travel ‐              ‐              500             ‐                500              510.10 Maintenance Contracts 5,543          50                ‐              ‐                ‐               510.16 Printing 539              ‐              500             500               500              510.20 Computer Services 4,897          7,565          8,000          8,000            8,000           510.28 Audit Fees 1,500          ‐              1,500          1,500            1,500           510.40 Supplies ‐ Office 6,537          6,659          ‐              5,000            5,000           510.49 Supplies ‐ Golf Course 6,725          7,619          14,000        6,000            7,000           510.50 Supplies ‐ All Other ‐              42                 ‐              ‐                ‐               510.55 Operating Equip ‐ Department ‐              ‐              ‐              ‐                ‐               510.70 Merchandise Purchases 47,850        53,245        45,000        48,000          45,000         510.73 Golf Cart Rental 35,768        38,898        33,000        33,000          35,000         510.76 Driving Range 2,776          3,168          3,000          3,301            3,000           510.79 Advertising & Promotions 10,063        8,983          10,000        11,000          10,000         510.82 GPS Expense 34,938        40,406        30,000        25,000          ‐               510.83 Credit Card Fees 23,627        23,365        20,000        15,000          18,000         510.85 State Sales Tax 7,362          5,877          6,500          6,500            6,500           25 - Operating Expenses 192,821 201,040 176,650 166,901 144,100 Percent Change 2013 vs. 2012 Budget ‐18.43% 30 ‐ Contractual Services 515.05 IRMA Premium 10,000        ‐              10,000        10,000          10,000         515.10 Unemployment Insurance 1,600          1,600          800             800               800              30 - Contractual Services 11,600 1,600 10,800 10,800 10,800 Percent Change 2013 vs. 2012 Budget 0.00% 40 ‐ Repairs and Maintenance 535.20 Buildings & Facilities 12,504        7,842          10,000        10,000          10,000         535.35 Golf Course 38,689        36,109        34,500        33,501          47,000         535.40 Irrigation System 3,676          8,177          10,000        10,835          10,000         545.05 Gasoline 24,805        27,420        25,000        29,000          30,000         545.10 Diesel Fuel 225             1,252          ‐              ‐                ‐               Village of Buffalo Grove 198 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  545.15 Automotive Parts 2                  245              ‐              ‐                ‐               545.20 Garage Labor 479             1,130          ‐              ‐                ‐               550.05 Department Equipment 27,122        37,315        30,000        30,000          30,000         40 - Repairs and Maintenance 107,502 119,490 109,500 113,336 127,000 Percent Change 2013 vs. 2012 Budget 15.98% 45 ‐ Commodities 530.05 Electricity ‐ Facilities 76,268        61,765        60,000        55,000          55,000         530.20 Gas ‐ Facilities 9,586          9,716          10,000        9,000            9,000           530.45 Chemicals and Fertilizers 71,050        54,802        65,000        64,000          65,000         530.50 Small Equipment Tools & Hardware 429               750               1,000            1,301            1,000             45 - Commodities 157,333 127,033 136,000 129,301 130,000 Percent Change 2013 vs. 2012 Budget ‐4.41% 50 ‐ Other Expenses 580.05 All Other Expenses 90                256             500             1,200            500              800 Depreciation 32,784        32,784        ‐              ‐                ‐               50 - Other Expenses 32,874 33,040 500 1,200 500 Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐              ‐              1,000          ‐                1,000           555.30 Reserve for Capital Replacement ‐              ‐              ‐              ‐                ‐               555.40 Reserve for Technology ‐              ‐              1,000          1,000            1,000           560.30 Buildings & Structures ‐              ‐              3,000          ‐                2,000           560.80 Golf Course 26,941        47,921        32,000        23,000          35,000         55 - Capital Outlay 26,941 47,921 37,000 24,000 39,000 Percent Change 2013 vs. 2012 Budget 5.41% 65 ‐ Other Financing Uses 570.10 Corporate Fund ‐              ‐              ‐              ‐                ‐               570.60 Arboretum Golf Course Fund ‐              ‐              70,106        54,450          24,060         65 - Other Financing Uses - - 70,106 54,450 24,060 Percent Change 2013 vs. 2012 Budget ‐65.68% Department Total: 84 - Golf 1,320,232 1,292,896 1,256,244 1,165,688 1,211,068 Percent Change 2013 vs. 2012 Budget ‐3.60% Expenditures Total 1,320,232 1,292,896 1,256,244 1,165,688 1,211,068 Village of Buffalo Grove 199 2013 Adopted Budget Arboretum Golf FY 2011 Actual FY 2012 Est. Actuals FY 2013 Budget Personal Services 580,655 576,800 582,680 Personal Benefits 173,722 163,760 170,730 Operating Expenses 242,579 191,605 178,100 Contractual Services 1,600 10,800 10,800 Repairs and Maintenance 85,355 80,500 93,000 Capital Equipment 23,299 24,265 26,000 Commodities 169,133 164,148 160,500 All Other Expenses 16 1,265 500 Total 1,276,359 1,213,143 1,222,310 0 200000 400000 600000 800000 1000000 1200000 1400000 FY 2011 Actual FY 2012 Est. Actual FY 2013 Budget Arboretum Golf Village of Buffalo Grove 200 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 190 ‐ Arboretum Golf Fund Revenues 40 ‐ Charges for Services 445.10 Greens Fees 634,129      699,802      775,000      785,000        780,000       445.15 Power Cart Rental 129,014      159,189      194,000      200,000        200,000       445.20 Pull Cart Rental 403             768             700             800               750              445.30 Memberships & Passes 30,381        97,836        35,000        10,000          35,000         445.35 Merchandise Sales 38,931        47,275        60,000        45,000          60,000         445.36 Coupon Sales 4,323          8,573          20,000        42,000          35,000         445.40 Sales Tax 3,268          3,181          4,800          3,500            4,800           445.50 GPS Income 27,224        27,179         ‐              ‐                ‐               445.55 Club Rental Fees 2,770          3,040          2,000          2,300            2,500           445.56 Locker Room Rental ‐              ‐              200             100               200              445.60 Rental Income Facility 53,418        41,340        55,000        50,000          55,000         445.70 Utility Reimbursement 3,551          8,612          25,000        20,000          25,000         445.90 Other Revenue 150             111             ‐              ‐                ‐               40 - Charges for Services 927,562 1,096,906 1,171,700 1,158,700 1,198,250 Percent Change 2013 vs. 2012 Budget 2.27% 55 ‐ Operating Transfers 460.05 Interfund Transfers In 453,000      168,000      70,106        54,450          24,060         55 - Operating Transfers 453,000 168,000 70,106 54,450 24,060 Percent Change 2013 vs. 2012 Budget ‐65.68% Revenues Total 1,380,562 1,264,906 1,241,806 1,213,150 1,222,310 Percent Change 2013 vs. 2012 Budget ‐1.57% Village of Buffalo Grove 201 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Expenditures Department: 84 ‐ Golf 10 ‐ Salaries 500.05 Full Time 354,821      362,532      365,431      360,000        351,380       500.10 Part Time 102,055      106,420      97,920        110,000        112,000       500.15 Seasonal 67,045        76,624        78,540        75,000          85,500         500.35 Overtime 29,283        30,879        28,560        28,000          30,000         500.40 Longevity 4,000          4,200          3,800          3,800            3,800           10 - Salaries 557,204 580,655 574,251 576,800 582,680 Percent Change 2013 vs. 2012 Budget 1.47% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 43,611        49,035        48,571        48,000          53,341         505.10 Professional Training 893             379             500             200               500              505.15 Dues & Memberships 3,329          2,986          2,500          2,000            2,500           505.25 Uniform Maintenance ‐              ‐              ‐              405               3,000           505.26 Uniform Rental 6,983          5,719          3,500          2,600            ‐               505.35 Safety Equipment 809             240             500             555               500              505.45 ICMA Deferred Compensation 2,843          2,036          ‐              ‐                ‐               505.80 Employer's Contribution ‐ IMRF 106,886      113,327      108,584      110,000        110,889       15 - Taxes and Benefits 165,354 173,722 164,155 163,760 170,730 Percent Change 2013 vs. 2012 Budget 4.01% 25 ‐ Operating Expenses 510.02 Telephone 5,264          5,623          4,000          4,000            4,000           510.03 Postage ‐              ‐              100             ‐                100              510.04 Travel ‐              271             500             ‐                500              510.16 Printing ‐              ‐              500             400               500              510.20 Computer Services 4,403          2,724          6,000          5,000            6,000           510.28 Audit Fees 1,500          ‐              1,500          1,500            1,500           510.40 Supplies ‐ Office 6,136          5,538          5,000          10,000          5,000           510.49 Supplies ‐ Golf Course 17,150        9,821          15,000        8,000            15,000         510.55 Operating Equip ‐ Department ‐              1,126          2,000          ‐                1,000           510.70 Merchandise Purchases 58,187        51,476        45,000        46,000          45,000         510.73 Golf Cart Rental 43,686        59,044        76,000        60,000          60,000         510.79 Advertising & Promotions 18,407        20,552        20,000        18,000          20,000         510.82 GPS Expense 53,746        60,915         ‐              20,205           ‐               510.83 Credit Card Fees 18,238        22,393        17,000        15,000          15,000         510.85 State Sales Tax 2,958          3,096          4,500          3,500            4,500           25 - Operating Expenses 229,675 242,579 197,100 191,605 178,100 Percent Change 2013 vs. 2012 Budget ‐9.64% 30 ‐ Contractual Services 515.05 IRMA Premium 10,000        ‐              10,000        10,000          10,000         515.10 Unemployment Insurance 1,600          1,600          800             800               800              30 - Contractual Services 11,600 1,600 10,800 10,800 10,800 Percent Change 2013 vs. 2012 Budget 0.00% 40 ‐ Repairs and Maintenance 535.20 Buildings & Facilities 10,100        19,088        15,000        12,000          15,000         535.35 Golf Course 11,733        20,132        29,000        22,000          26,000         535.40 Irrigation System 9,089          3,585          13,000        8,500            16,000         545.05 Gasoline 13,883        19,252        17,000        20,000          20,000         545.20 Garage Labor ‐              ‐              ‐              ‐                ‐               550.05 Department Equipment 22,164        23,298        20,000        18,000          16,000         40 - Repairs and Maintenance 66,969 85,355 94,000 80,500 93,000 Village of Buffalo Grove 202 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Percent Change 2013 vs. 2012 Budget ‐1.06% 45 ‐ Commodities 530.05 Electricity ‐ Facilities 65,087        61,783        55,000        50,000          50,000         530.20 Gas ‐ Facilities 20,702        14,221        18,000        18,000          18,000         530.45 Chemicals and Fertilizers 95,664        92,652        93,000        95,773          90,000         530.50 Small Equipment Tools & Hardware 129               477               500               375               2,500             45 - Commodities 181,582 169,133 166,500 164,148 160,500 Percent Change 2013 vs. 2012 Budget ‐3.60% 50 ‐ Other Expenses 580.05 All Other Expenses 100             16                ‐              1,265            500              50 - Other Expenses 100 16 - 1,265 500 Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐              ‐              ‐              ‐                ‐               555.30 Reserve for Capital Replacement ‐              ‐              ‐              ‐                ‐               560.30 Buildings & Structures ‐              ‐              2,000          1,265            1,000           560.80 Golf Course 21,990        23,299        33,000        23,000          25,000         55 - Capital Outlay 21,990 23,299 35,000 24,265 26,000 Percent Change 2013 vs. 2012 Budget ‐25.71% Department Total: 84 - Golf 1,234,474 1,276,359 1,241,806 1,213,143 1,222,310 Percent Change 2013 vs. 2012 Budget ‐1.57% Expenditures Total 1,234,474 1,276,359 1,241,806 1,213,143 1,222,310 Village of Buffalo Grove 203 2013 Adopted Budget 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 2013, the proposed revenue budget for the Village's Water and Sewer Fund totals $10,130,906 compared to  $8,118,786 for FY 2012, an increase of $2,012,120 or 24.8 percent. When compared to the FY 2012 Estimated  Actual of $7,717,780, the proposed budget increases by 31.3 percent.    Water Fund revenues include building fees, sales of water, investment income and all other revenues.  Building Revenue & Fees: The revenue for development fees are less than a percent of the proposed budget.  This  account group takes into consideration anticipated building and development plans. The review incorporates a  conservative, realistic outlook using factors such as economics, current development trends, status relative to the  overall review process of the Village prior to final permitting along with the feasibility of the project assumed by  developers. Total fees are expected to be 1.3 percent more than the 2012 budget.  Sales of Water: Significant revenue accrues from the metered sale of water, fees for the local share of the debt  service requirements of the Northwest Water Commission along with sanitary sewer treatment fees due the  County of Lake.    There were a series of rate increases adopted by the Village Board on July 9, 2012. The first rate increase is  effective on January 1, 2013. Sales of Water and Village Sewer Use Charges are based on the current metered  consumption rate as adopted by the Village Board ($4.05/1,000 gallons), further allocating the charge at $3.24 and  $.81/1,000 gallons respectively.  On January 1, 2014, the combined rate adjusts to $5.26/1,000 gallons. Every  January thereafter the rate is increased by 4 percent. The rate recommendations were the result of the twenty  year proforma analysis. This report will be updated and reviewed annually.   Over the last four years, the consumption of water has decreased by 15 percent. Over the last two years the  decline in usage has moderated. No significant growth in consumption was factored for FY 2013. Overall calendar  2012, residential consumption is averaging 6,300 gallons/month compared to 7,390 since calendar 1976.  The  economy has played a role in water consumption as foreclosures and vacant homes are registering water use. The  2010 Census indicates that the Village’s population is shrinking resulting in fewer system users. From a broader  perspective, the Village’s efforts towards water conservation, the maturity of the community, the use of native  plantings, and more efficient appliances have all played a significant role in the decline in the amount of water  consumed.  Bond fee revenue is based upon fiscal year debt service requirements adjusted for other non‐fee/rate sources of  funds used to moderate the requirements downward. As of January 1, 2013, the monthly flat fee charged to each  user/consumer within the Village is $1.90 per month.    The last line item of significance is Lake County Sanitary Sewer Treatment Fees.  There is a significant decrease in  revenue related to the Village’s collection of sanitary sewer fees on behalf of Lake County. Revenue dropped by  $473,761 due to the change in billing methodology from a fixed fee to a fee based on actual consumption and the  institution of a summer sewer credit program.      Village of Buffalo Grove 204 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 170 ‐ Water & Sewer Fund Revenues 30 ‐ Permits 435.75 Water Connection Fees 7,430          3,550          1,500          2,650            1,500           435.76 Lake County Sewer Tap On Fees 133,995      34,150        25,000        30,600          25,000         435.77 Village Sewer Tap On Fees 2,252          600             500             600               500              435.78 Water Meter Sales 11,642        3,132          3,500          9,000            4,000           435.79 System Improvement Fees 27,120        7,290          7,500          9,000            7,500           435.80 Sewer T.V. Inspection Fees 2,300          ‐              ‐              ‐                ‐               30 - Permits 184,739 48,722 38,000 51,850 38,500 Percent Change 2013 vs. 2012 Budget 1.32% 40 ‐ Charges for Services 441.05 Sales of Water Resident ‐ Regular 3,134,017   2,993,763   3,146,000   3,208,280     4,309,200    441.15 Charge 404,233      403,585      404,100      402,000        402,000       441.20 Penalties 27,049        88,178        27,000        29,000          29,000         441.30 Construction Water 2,469          954             750             600               750              441.60 Fees ‐ Turn On ‐              ‐              ‐              ‐                ‐               441.65 Fees ‐ Water Use Non‐Resident ‐              ‐              ‐              ‐                ‐               442.05 Village Sewer Resident ‐ Regular 780,110      687,533      795,000      798,000        1,077,300    442.10 Village Sewer Penalties 4,558,903   3,559,265   ‐              ‐                ‐               443.00 Lake County Sewer Sanitary Sewer  Service Fees  ‐                ‐                3,673,761     3,200,000     3,200,000      40 - Charges for Services 8,906,781 7,733,278 8,046,611 7,637,880 9,018,250 Percent Change 2013 vs. 2012 Budget 12.08% 45 ‐ Interest Income 450.05  Savings 1,652          944             575             500               400              450.10 Investment Pool 495             109             ‐              ‐                ‐               450.15  Money Market 15                (31)              100             50                   50                 450.20  CD's 61,203        32,589        20,000        18,500          20,000         450.25  Securities 17,843        7,960          11,000        8,000            5,000           45 - Interest Income 81,208 41,571 31,675 27,050 25,450 Percent Change 2013 vs. 2012 Budget ‐19.65% 50 ‐ Miscellaneous Revenue 465.65 Grants ‐              ‐              ‐              ‐                437,388       465.90 Miscellaneous Income 2,133          45,332        2,500          1,000            611,318       50 - Miscellaneous Revenue 2,133 45,332 2,500 1,000 1,048,706 Percent Change 2013 vs. 2012 Budget 41848.24% 55 ‐ Operating Transfers 460.05 Interfund Transfers In ‐              ‐              ‐              ‐                ‐               55 - Operating Transfers - - - - - Percent Change 2013 vs. 2012 Budget 0.00% Revenues Total 9,174,861 7,868,903 8,118,786 7,717,780 10,130,906 Percent Change 2013 vs. 2012 Budget 24.78% Village of Buffalo Grove 205 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Expenditures Department: 55 ‐ Public Works Division: 35 ‐ Water 10 ‐ Salaries 500.05 Full Time 648,217      636,213      685,649      642,110        576,520       500.10 Part Time ‐              ‐              38,197        ‐                ‐               500.35 Overtime 56,289        53,332        51,096        46,207          51,288         500.40 Longevity 5,510          6,110          5,560          4,960            5,360           10 - Salaries 710,016 695,655 780,502 693,277 633,168 Percent Change 2013 vs. 2012 Budget ‐18.88% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 93,533        88,870        113,628      113,628        120,406       505.10 Professional Training 179             215             1,800          900               3,000           505.15 Dues & Memberships 246             364             774             600               894              505.20 Clothing Allowance 1,017          994             1,880          1,600            2,060           505.25 Uniform Maintenance ‐              ‐              ‐              2,100            2,169           505.26 Uniform Rental 2,519          2,555          2,169          ‐                ‐               505.35 Safety Equipment 6,558          3,557          6,900          5,200            6,900           505.45 ICMA Deferred Compensation 2,607          1,750          847             1,770            ‐               505.80 Employer's Contribution ‐ IMRF 140,204      154,380      151,238      152,135        154,033       15 - Taxes and Benefits 246,863 252,685 279,236 277,933 289,462 Percent Change 2013 vs. 2012 Budget 3.66% 25 ‐ Operating Expenses 510.02 Telephone 4,333          4,350          7,536          5,800            7,536           510.10 Maintenance Contracts 15,642        45,718        89,765        85,000          89,765         510.12 Equipment Rental 431             304             1,018          750               1,018           510.14 Subscriptions & Publications ‐              ‐              ‐              ‐                ‐               510.16 Printing 120             228             4,000          3,000            4,000           510.40 Supplies ‐ Office 441             413             500             500               450              510.50 Supplies ‐ All Other 1,358          1,759          2,800          2,400            2,800           510.55 Operating Equip ‐ Department 600             ‐              ‐              6,000            6,000           510.90 Northwest Water Commission 1,267,270   1,349,085   1,393,850   1,393,850     1,382,005    25 - Operating Expenses 1,290,195 1,401,857 1,499,469 1,497,300 1,493,574 Percent Change 2013 vs. 2012 Budget ‐0.39% 30 ‐ Contractual Services 515.05 IRMA Premium 109,942      137,702      129,942      129,942        129,942       515.10 Unemployment Insurance 2,560          2,560          1,280          1,280            1,600           30 - Contractual Services 112,502 140,262 131,222 131,222 131,542 Percent Change 2013 vs. 2012 Budget 0.24% 40 ‐ Repairs and Maintenance 535.05 Sidewalks, Curbs, & Bikeways 8,056          12,186        25,000        25,000          25,000         535.20 Buildings & Facilities 132             207             70,000        70,000          70,000         540.05 Well Equipment 4,195          3,691          8,000          6,000            10,000         540.10 Pumping Stations 5,953          208             5,000          4,200            5,000           540.15 Watermains & Services 13,456        13,525        16,000        12,000          16,000         540.20 Reservoirs 1,831          722             5,000          3,000            5,000           540.25 Water Meters 7,254          7,316          14,000        14,000          14,000         540.30 Hydrants & Valves 7,900          9,629          20,000        15,000          20,000         545.05 Gasoline 3,890          7,413          8,396          6,044            8,416           545.10 Diesel Fuel 10,101        12,455        17,299        11,273          14,842         545.15 Automotive Parts 9,748          12,553        9,486          9,000            12,146         545.20 Garage Labor 29,461        31,196        32,897        30,169          37,860         Village of Buffalo Grove 206 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  545.25 Lubricants 2,498          ‐              1,033          ‐                944              545.30 Garage Overhead ‐              ‐              ‐              ‐                ‐               545.40 Contractual Auto Services 3,992          8,429          9,394          3,294            4,162           550.05 Department Equipment 571             5,950          16,000        9,230            16,000         550.10 Radios ‐              ‐              500             300               500              40 - Repairs and Maintenance 109,038 125,480 258,005 218,510 259,870 Percent Change 2013 vs. 2012 Budget 0.72% 45 ‐ Commodities 530.15 Electricity ‐ Water & Sewer 249,117      211,373      230,000      192,000        230,000       530.30 Gas ‐ Water & Sewer 1,465          3,588          3,000          3,000            3,000           530.45 Chemicals and Fertilizers 2,220          4,306          5,220          4,200            5,220           530.50 Small Equipment Tools & Hardware 1,323            987               1,600            1,500            1,600             530.60 Water Sample Analysis 11,693        10,995        11,720        12,000          25,360         530.65 Water Meter Purchases 11,169        30,935        21,500        45,202          43,000         45 - Commodities 276,987 262,184 273,040 257,902 308,180 Percent Change 2013 vs. 2012 Budget 12.87% 50 ‐ Other Expenses 580.05 All Other Expenses 5,642          1,624          ‐              ‐                ‐               800 Depreciation 1,196,275   1,037,357   ‐              ‐                ‐               50 - Other Expenses 1,201,917 1,038,981 - - - Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Capital Outlay 555.10 Office and Other Equipment ‐              ‐              6,000          ‐                ‐               555.30 Reserve for Capital Replacement ‐              ‐              ‐              ‐                54,255         555.40 Reserve for Technology ‐              ‐              ‐              ‐                1,500           560.60 Water System 48,944        79,070        1,494,000   600,000        1,025,000    55 - Capital Outlay 48,944 79,070 1,500,000 600,000 1,080,755 Percent Change 2013 vs. 2012 Budget ‐27.95% 60 ‐ Debt Service 565.10 Principal ‐              ‐              ‐              ‐                ‐               565.20 Interest ‐              ‐              ‐              ‐                6,010           565.60 Northwest Water Service 430,699      429,428      440,163      440,163        440,163       60 - Debt Service 430,699 429,428 440,163 440,163 446,173 Percent Change 2013 vs. 2012 Budget 1.37% 65 ‐ Other Financing Uses 570.10 Corporate Fund 705,000      705,000      705,000      705,000        765,000       570.20 Debt Service Fund 180,000      200,000      180,000      180,000        180,000       65 - Other Financing Uses 885,000 905,000 885,000 885,000 945,000 Percent Change 2013 vs. 2012 Budget 6.78% Division Total: 35 - Water 5,312,161 5,330,602 6,046,637 5,001,307 5,587,724 Percent Change 2013 vs. 2012 Budget ‐7.59% Village of Buffalo Grove 207 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Division: 36 ‐ Sewer 10 ‐ Salaries 500.05 Full Time 255,208      232,874      278,320      245,000        287,062       500.35 Overtime 23,878        25,897        11,780        25,000          12,264         500.40 Longevity 2,034          1,434          2,369          2,369            2,633           10 - Salaries 281,120 260,205 292,469 272,369 301,959 Percent Change 2013 vs. 2012 Budget 3.24% 15 ‐ Taxes and Benefits 505.05 Group & Medical Life 64,729        90,513        90,805        90,805          102,196       505.10 Professional Training 73                160             400             400               400              505.15 Dues & Memberships 120             ‐              160             160               100              505.20 Clothing Allowance 448             549             701             650               701              505.25 Uniform Maintenance ‐              ‐              1,100          1,141            1,141           505.26 Uniform Rental 1,259          1,236          ‐              ‐                ‐               505.35 Safety Equipment 5,017          2,513          7,780          7,000            7,780           505.45 ICMA Deferred Compensation 405             272             92                92                   ‐               505.80 Employer's Contribution ‐ IMRF 59,302        52,472        58,547        59,717          62,490         15 - Taxes and Benefits 131,353 147,715 159,585 159,965 174,808 Percent Change 2013 vs. 2012 Budget 9.54% 25 ‐ Operating Expenses 510.02 Telephone 15,343        16,096        37,907        12,000          15,721         510.10 Maintenance Contracts 17,633        14,181        ‐              20,000          23,112         510.12 Equipment Rental 6,799          239             433             300               433              510.40 Supplies ‐ Office 383             393             14,700        500               450              510.50 Supplies ‐ All Other 2,343          3,373          3,500          3,250            3,500           510.55 Operating Equip ‐ Department 7,089          5,425          7,500          7,500            7,500           25 - Operating Expenses 49,590 39,707 64,040 43,550 50,716 Percent Change 2013 vs. 2012 Budget ‐20.81% 30 ‐ Contractual Services 515.05 IRMA Premium 36,648        64,927        41,648        41,648          41,648         515.10 Unemployment Insurance 1,280          1,280          640             640               800              30 - Contractual Services 37,928 66,207 42,288 42,288 42,448 Percent Change 2013 vs. 2012 Budget 0.38% 40 ‐ Repairs and Maintenance 540.35 Storm and Sanitary Sewers 737             2,300          2,500          5,000            4,000           540.40 Lift Stations 13,709        19,832        ‐              13,200          14,200         545.05 Gasoline 2,008          3,488          2,751          2,751            3,066           545.10 Diesel Fuel 5,182          9,807          8,979          8,979            9,338           545.15 Automotive Parts 4,522          4,187          5,264          5,264            5,264           545.20 Garage Labor 7,803          12,916        18,476        18,476          14,313         545.25 Lubricants ‐              ‐              738             738               649              545.40 Contractual Auto Services 273             2,018          4,000          4,000            1,552           550.05 Department Equipment 2,663          4,248          6,200          6,000            6,200           550.10 Radios ‐              ‐              200             200               200              40 - Repairs and Maintenance 36,897 58,796 49,108 64,608 58,782 Percent Change 2013 vs. 2012 Budget 19.70% 45 ‐ Commodities 530.15 Electricity ‐ Water & Sewer 47,563        50,412        46,500        45,000          45,000         530.50 Small Equipment Tools & Hardware 1,493            389                ‐                1,300            1,500             530.70 Lake County Tap‐On Fees 125,800      47,600        40,000        40,000          40,000         Village of Buffalo Grove 208 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  530.75 Lake County Sanitary Sewer Fees 4,533,134   3,598,936   3,673,761   3,200,000     3,200,000    45 - Commodities 4,707,990 3,697,337 3,760,261 3,286,300 3,286,500 Percent Change 2013 vs. 2012 Budget ‐12.60% 50 ‐ Other Expenses 580.05 All Other Expenses ‐              ‐              75                ‐                ‐               50 - Other Expenses - - 75 - - Percent Change 2013 vs. 2012 Budget ‐100.00% 55 ‐ Capital Outlay 555.30 Reserve for Capital Replacement ‐              ‐              ‐              ‐                26,044         555.40 Reserve for Technology ‐              ‐              ‐              ‐                1,350           560.70 Sewer System 27,546        97,913        950,000      600,000        950,000       55 - Capital Outlay 27,546 97,913 950,000 600,000 977,394 Percent Change 2013 vs. 2012 Budget 2.88% 60 ‐ Debt Service 565.10 Principal ‐              ‐              ‐              ‐                17,427         565.20 Interest ‐              ‐              ‐              ‐                9,864           60 - Debt Service - - - - 27,291 Percent Change 2013 vs. 2012 Budget 0.00% Division Total: 36 - Sewer 5,272,424 4,367,880 5,317,826 4,469,080 4,919,898 Department Total: 55 - Public Works 10,584,585 9,698,482 11,364,463 9,470,387 10,507,622 Expenditures Total 10,584,585 9,698,482 11,364,463 9,470,387 10,507,622 Village of Buffalo Grove 209 2013 Adopted Budget 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 2013‐2014  commitment by the Village of an estimated 16,240 tons of refuse to be processed at a rate of $57.53/ton.    On April 16, 2012 the Village Board approved a five year contract with Waste Management. The negotiated rates  are fixed during the duration of the contract. The effective rates are noted below.  Column1 Single Family  Multi‐Family   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*    $4.25*   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       Village of Buffalo Grove 210 2013 Adopted Budget Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 200 ‐ Refuse Fund Revenues 50 ‐ Miscellaneous Revenue 465.55 SWANCC User Fees 966,537      1,036,872   1,039,387   1,041,217     1,041,217    50 - Miscellaneous Revenue 966,537 1,036,872 1,039,387 1,041,217 1,041,217 Percent Change 2013 vs. 2012 Budget 0.18% Revenues Total 966,537 1,036,872 1,039,387 1,041,217 1,041,217 Percent Change 2013 vs. 2012 Budget 0.18% Expenditures Department: 86 ‐ Refuse 50 ‐ Other Expenses 580.35 SWANCC User Fees 936,197      935,365      969,321      934,285        934,285       50 - Other Expenses 936,197 935,365 969,321 934,285 934,285 Percent Change 2013 vs. 2012 Budget ‐3.61% Department Total: 86 - Refuse 936,197 935,365 969,321 934,285 934,285 Percent Change 2013 vs. 2012 Budget ‐3.61% Expenditures Total 936,197 935,365 969,321 934,285 934,285 Percent Change 2013 vs. 2012 Budget ‐3.61% Village of Buffalo Grove 211 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 212 2013 Adopted Budget Se   Fiduc Police Pe Firefighte                             ectio ciary Fu ension Fund  ers Pension  on  nds  Fund  8  Village of Buffalo Grove 213 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 214 2013 Adopted Budget 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. In 2012, the Village changed the annual benchmark for investment  returns from 7.5 percent to 7 percent. The annual salary increase assumption remains at 5 percent.    The Police Pension Board has invested about 45 percent of its investment portfolio in equity related instruments  (mutual funds and separate stocks) and 35 percent in fixed income investments (money market funds, certificates  of deposit, treasury bonds and government agencies).    The Police Pension’s average five‐year investment rate of return has been 3.20 percent.  Over the past eight‐year  period the average investment rate of return has been 4.10 percent.      The 2013 budget includes pensions for 36 annuitants. 31 are traditional retirements, two are disability pensions,  two are surviving spouses, and one deferred pensioner.    Performance Activities and Measures   2011 Actual 2012 Estimate 2013 Projected  Unfunded Liability    (in thousands)  $                     20,027  $                         21,500  $                 22,900  Assets (in thousands)  $                     45,414  $                         47,500  $                 49,500  Percent Funded 67.97% 71.08% 73.40%  Number of Active  Participants 68 68 68  Number of Inactive  Participants 36 38 40    Departmental Staffing  No full time or part time employees are assigned to this program.           Village of Buffalo Grove 215 2013 Adopted Budget Revenue Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 220 ‐ Police Pension Fund Revenues 45 ‐ Interest Income 450.05  Savings 12,532         4,867            1,200            ‐                  ‐                 450.10 Investment Pool 2,955            613               100               ‐                  ‐                 450.15  Money Market 17                 247               60                 ‐                  ‐                 450.20  CD's ‐                ‐                ‐                ‐                  ‐                 450.25  Securities 60,097         69,381         35,000         34,500           36,000          450.30 Amortization ‐Security Disc/Prem 596,300         82,689           371,816         ‐                  ‐                   450.35 Gain/Loss Security Transaction 411,902         1,464,275      ‐                  ‐                  ‐                   450.40 Annuity Gain/Loss 2,082,115    54,208         967,000       980,000         1,000,000     450.45 Stock Dividend 287,230       334,623       210,000       200,000         200,000        45 - Interest Income 3,453,148 2,010,903 1,585,176 1,214,500 1,236,000 Percent Change 2013 vs. 2012 Budget ‐22.03% 50 ‐ Miscellaneous Revenue 465.40 Pension Contributions ‐ ER 636,117       812,363       569,300       583,444         589,102        50 - Miscellaneous Revenue 636,117 812,363 569,300 583,444 589,102 Percent Change 2013 vs. 2012 Budget 3.48% 55 ‐ Operating Transfers 460.05 Interfund Transfers In 1,955,825    2,201,593    2,159,838    2,174,955      2,198,690     55 - Operating Transfers 1,955,825 2,201,593 2,159,838 2,174,955 2,198,690 Percent Change 2013 vs. 2012 Budget 1.80% Revenues Total 6,045,090 5,024,859 4,314,314 3,972,899 4,023,792 Percent Change 2013 vs. 2012 Budget ‐6.73% Expense Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Expenditures Department: 88 ‐ Police Pension 15 ‐ Taxes and Benefits 505.55 Survivor Pension ‐ Police 98,534         ‐                98,534         95,281           95,281          505.60 Pension Payment ‐ Police 1,372,018    1,732,780    1,815,601    1,956,903      2,062,206     505.65 Disability Payment ‐ Police 89,528         89,528         89,528         89,528           89,528          15 - Taxes and Benefits 1,560,080 1,822,308 2,003,663 2,141,712 2,247,015 Percent Change 2013 vs. 2012 Budget 12.15% 50 ‐ Other Expenses 580.05 All Other Expenses 34,895         18,627         32,000         32,000           32,000          580.40 Investment Fees 96,789         126,431       105,000       110,000         110,000        50 - Other Expenses 131,684 145,058 137,000 142,000 142,000 Percent Change 2013 vs. 2012 Budget 3.65% Expenditures Total 1,691,764 1,967,366 2,140,663 2,283,712 2,389,015 Percent Change 2013 vs. 2012 Budget 11.60% Village of Buffalo Grove 216 2013 Adopted Budget 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. In 2012, the Village changed the annual benchmark for investment  returns from 7.5 percent to 7 percent. The annual salary increase assumption remains at 5 percent.    The Firefighters Pension Board has invested about 42.6 percent of its investment portfolio in equity related  instruments (mutual funds and separate stocks) and 60 percent in fixed income investments (money market funds,  certificates of deposit, treasury bonds and government agencies).    The Fire Pension’s average five‐year investment rate of return has been 2.78 percent.  Over the past eight‐year  period the average investment rate of return has been 4.19 percent.      The 2012 budget includes pensions for 26 annuitants. 23 are traditional retirements, two are disability pensions  and one surviving spouses.     Performance Activities and Measures  2011 Actual 2012 Estimate 2013 Projected  Unfunded Liability  (in thousands)  $                     21,326  $                         22,000  $                 23,000  Assets (in thousands)  $                     36,989  $                         38,489  $                 39,989  Percent Funded 63.40% 65.40% 67.40%  Number of Active  Participants 61 61 61  Number of Inactive  Participants 25 27 29      Departmental Staffing  No full time or part time employees are assigned to this program.    Village of Buffalo Grove 217 2013 Adopted Budget Revenue Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Fund: 230 ‐ Fire Pension Fund Revenues 45 ‐ Interest Income 450.05  Savings 2,208            2,299            250               250                 250                450.10 Investment Pool 27                 ‐                ‐                ‐                  ‐                 450.15  Money Market 21                 31                 20                 20                   20                  450.20  CD's 715,473       211,212       310,000       225,000         150,000        450.25  Securities 8,255            34,575         50,000         50,000           50,000          450.30 Amortization ‐Security Disc/Prem ‐                  ‐                  120,252         ‐                  ‐                   450.35 Gain/Loss Security Transaction (32,107)          362,377         ‐                  ‐                  ‐                   450.40 Annuity Gain/Loss 1,739,953    (306,176)      911,009       930,000         945,000        450.45 Stock Dividend 109,705       320,552       ‐                ‐                  ‐                 45 - Interest Income 2,543,535 624,870 1,391,531 1,205,270 1,145,270 Percent Change 2013 vs. 2012 Budget ‐17.70% 50 ‐ Miscellaneous Revenue 465.40 Pension Contributions ‐ ER 518,788       505,291       496,574       504,991         512,230        50 - Miscellaneous Revenue 518,788 505,291 496,574 504,991 512,230 Percent Change 2013 vs. 2012 Budget 3.15% 55 ‐ Operating Transfers 460.05 Interfund Transfers In 1,853,285    2,033,998    2,003,757    2,017,782      2,103,943     55 - Operating Transfers 1,853,285 2,033,998 2,003,757 2,017,782 2,103,943 Percent Change 2013 vs. 2012 Budget 5.00% Revenues Total 4,915,608 3,164,159 3,891,862 3,728,043 3,761,443 Percent Change 2013 vs. 2012 Budget ‐3.35% Expense Description FY 2010  Actual  FY 2011  Actual  FY 2012  Budget   FY 2012 Est.  Actuals  FY 2013  Budget  Expenditures Department: 89 ‐ Fire Pension 15 ‐ Taxes and Benefits 505.56 Survivor Pension ‐ Fire 88,855         ‐                88,855         81,490           81,490          505.61 Pension Payment ‐ Fire 372,078       799,038       1,003,673    1,185,115      1,384,423     505.66 Disability Payment ‐ Fire 123,238       212,093       123,238       70,113           95,156          15 - Taxes and Benefits 584,171 1,011,131 1,215,766 1,336,718 1,561,069 Percent Change 2013 vs. 2012 Budget 28.40% 50 ‐ Other Expenses 580.05 All Other Expenses 46,448         79,094         58,738         60,000           65,000          580.40 Investment Fees 10,714         ‐                45,000         45,000           48,000          50 - Other Expenses 57,162 79,094 103,738 105,000 113,000 Percent Change 2013 vs. 2012 Budget 8.93% Department Total: 89 - Fire Pension 641,333 1,090,225 1,319,504 1,441,718 1,674,069 Percent Change 2013 vs. 2012 Budget 26.87% Expenditures Total 641,333 1,090,225 1,319,504 1,441,718 1,674,069 Percent Change 2013 vs. 2012 Budget 26.87% Village of Buffalo Grove 218 2013 Adopted Budget Se   Othe Illinois M Parking L Facility D                             ectio r Funds Municipal Ret Lot Fund  Development on  s  tirement Fun t Debt Servic 9  nd  ce  Village of Buffalo Grove 219 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 220 2013 Adopted Budget Illinois Municipal Retirement Fund  The Village’s Illinois Municipal Retirement Fund (IMRF) provides for the funding of employer contributions for FICA  (Social Security), Medicare for those employees that participate in that program only, and the Illinois Municipal  Retirement Fund retirement and disability programs. All expenditures represent the Village’s obligation to  contribute for employee retirement and disability costs in 2013.     In 2011, the Illinois Pension Code was amended to create a Tier II pension classification for all IMRF eligible  employees hired after January 1, 2011. The impact of the legislation was to cap the maximum level of earnings, for  pension purposes, to the FICA limit, with statutory increases to the limit on an annual basis and tied to the  consumer price index. Other changes included reducing inflationary growth for retirement distributions and  increasing the age for retirement without any early retirement reductions.    The tax rate for 2013 is 6.2 percent for all FICA eligible wages up to $113,700 and 1.45 percent for all wages for  employees participating in the Medicare system. The Village’s obligation to IMRF is 13.69 percent of total wages  for Tier I employees with wages being capped for Tier II employees at $ 108,882.    As of 12/31/2011, IMRF is 72.53 percent funded with the value of assets at $20.5 million and an unfunded liability  of $7.8 million.     Village of Buffalo Grove 221 2013 Adopted Budget Revenue Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Fund: 110 - IMRF/Social Security Fund Revenues 10 - Property Taxes 400.30 FICA Levy - Cook County 331,185 394,358 359,682 360,000 165,163 400.31 FICA Levy - Lake County 1,254,881 1,173,400 1,207,186 1,207,500 550,448 400.32 IMRF Levy - Cook County - - - - 204,300 400.33 IMRF Levy - Lake County - - - - 680,882 10 - Property Taxes 1,586,066 1,567,758 1,566,868 1,567,500 1,600,793 Percent Change 2013 vs. 2012 Budget 2.17% 15 - Other Taxes 410.50 Replacement Tax - - - - - 15 - Other Taxes - - - - - Percent Change 2013 vs. 2012 Budget 0.00% 45 - Interest Income 450.10 Investment Pool - - 50 50 50 45 - Interest Income - - 50 50 50 Percent Change 2013 vs. 2012 Budget 0.00% 55 - Operating Transfers 460.05 Interfund Transfers In - - - - - 55 - Operating Transfers - - - - - Percent Change 2013 vs. 2012 Budget 0.00% Revenues Total 1,586,066 1,567,758 1,566,918 1,567,550 1,600,843 Percent Change 2013 vs. 2012 Budget 2.17% Expense Description FY 2010 Actual FY 2011 Actual FY 2012 Budget FY 2012 Est. Actuals FY 2013 Budget Expenditures Department: 80 - IMRF/ Social Security 15 - Taxes and Benefits 505.75 Employer's Contribution - FICA 424,992 404,701 438,621 430,000 425,465 505.80 Employer's Contribution - IMRF 822,298 813,074 839,794 845,000 904,189 505.85 Employer's Contribution Medicare 248,592 252,070 251,906 252,000 257,096 15 - Taxes and Benefits 1,495,882 1,469,845 1,530,321 1,527,000 1,586,750 Percent Change 2013 vs. 2012 Budget 3.69% Expenditures Total 1,495,882 1,469,845 1,530,321 1,527,000 1,586,750 Percent Change 2013 vs. 2012 Budget 3.69% Village of Buffalo Grove 222 2013 Adopted Budget Parking Lot Fund  The Parking Lot Fund provides for the accounting of both revenues and expenditures related to the Village’s  operation of the commuter station parking lot at the Canadian National/METRA site. Rates for daily parking are  $1.75/day.  The Village offers a bi‐monthly prepaid parking pass for $50/two months. The trend of commuters  opting for the parking pass is budgeted to continue in 2013 with the total relative number of commuters remaining  close to 2012 numbers. Spikes in fuel costs and/or employment factors will affect revenue performance. Total  parking stall days will be approximately 87,000.     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.                             Revenue      Description   FY 2010  Actual    FY 2011  Actual    FY 2012  Budget    FY 2012  Est.  Actuals    FY 2013  Budget   Fund: 120 ‐ Metra Parking Lot Fund  Revenues  35 ‐ Fines and Fees  455.70 Daily Metra        52,295      108,577        56,550          52,000         52,000  455.75 Parking Passes        98,499        49,592      106,000        106,000       106,000  35 - Fines and Fees 150,794 158,169 162,550 158,000 158,000 Percent Change 2013 vs. 2012 Budget ‐2.78% 50 ‐ Miscellaneous Revenue  465.20 Facility Rental         1,107          1,053          1,320            1,320           1,320  465.90 Miscellaneous Income                ‐                   ‐                   ‐                    ‐                   ‐    50 - Miscellaneous Revenue 1,107 1,053 1,320 1,320 1,320 Percent Change 2013 vs. 2012 Budget 0.00% Revenues Total 151,901 159,222 163,870 159,320 159,320 Percent Change 2013 vs. 2012 Budget ‐2.78% Village of Buffalo Grove 223 2013 Adopted Budget Expense      Description   FY 2010  Actual    FY 2011  Actual    FY 2012  Budget    FY 2012  Est.  Actuals    FY 2013  Budget   Expenditures  Department: 81 ‐ Metra Parking  10 ‐ Salaries  500.10 Part Time       12,417        12,231        12,220          12,200         12,444  10 - Salaries 12,417 12,231 12,220 12,200 12,444 Percent Change 2013 vs. 2012 Budget 1.83% 15 ‐ Taxes and Benefits  505.75 Employer's Contribution ‐ FICA                ‐                   ‐                758                756               771  505.85 Employer's Contribution  Medicare                 ‐                   ‐                177                177               180  15 - Taxes and Benefits - - 935 933 951 Percent Change 2013 vs. 2012 Budget 1.71% 25 ‐ Operating Expenses  510.10 Maintenance Contracts              496              478              500                500               500  510.50 Supplies ‐ All Other         5,646          1,813          2,800            2,500           2,500  510.92 Lease Payments       76,818      111,725      113,960        113,960       118,518  510.95 Pace Fees       16,037        15,148        14,000          14,000         14,000  25 - Operating Expenses 98,997 129,164 131,260 130,960 135,518 Percent Change 2013 vs. 2012 Budget 3.24% 40 ‐ Repairs and Maintenance  535.20 Buildings & Facilities          4,772          1,054          1,250                500           1,250  535.25 Parking Lots                 ‐                   ‐                750                   ‐                750  535.30 Parkway Trees                 ‐                   ‐                500                250               500  40 - Repairs and Maintenance 4,772 1,054 2,500 750 2,500 Percent Change 2013 vs. 2012 Budget 0.00% 45 ‐ Commodities  530.05 Electricity ‐ Facilities        19,606        14,161        13,650          13,800         13,800  530.10 Electricity ‐ Street Lights                ‐                   ‐            1,000            1,000           1,000  530.20 Gas ‐ Facilities         2,118          1,818          1,950            1,820           1,820  530.45 Chemicals and Fertilizers                 ‐                   ‐                   ‐                    ‐                   ‐    45 - Commodities 21,724 15,979 16,600 16,620 16,620 Percent Change 2013 vs. 2012 Budget 0.12% 50 ‐ Other Expenses  580.05 All Other Expenses                 ‐                   ‐                200                200               200  50 - Other Expenses - - 200 200 200 Percent Change 2013 vs. 2012 Budget 0.00% Department Total: 81 - Metra Parking 137,910 158,428 163,715 161,663 168,233 Percent Change 2013 vs. 2012 Budget 2.76% Expenditures Total 137,910 158,428 163,715 161,663 168,233 Percent Change 2013 vs. 2012 Budget 2.76% Village of Buffalo Grove 224 2013 Adopted Budget Facilities Development Debt Service Fund  The Facilities Development 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, 2013, the Village has $12.28 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 2012, the Village issued an additional $6 million to  address several years of deficits in the annual street maintenance program.  In addition, the Village will be  establishing a $6 million line of credit to address the replacement of nearly 6,300 ash trees over the next several  years.      The Village Board has adopted a policy that governs debt issuance. As tenets of that policy (1) no debt financing  will be used to finance current expenditures, (2) capital projects will not be financed beyond their useful lives, (3)  total outstanding general obligation debt will not exceed the amount allowed non‐home rule municipalities and (4)  pay‐as‐you‐go financing is the preferred method of financing.    The Village’s bond rating was upgraded in 2010 to AAA by Standard & Poor’s and Moody’s Investor Services and  the Village affirmed that rating in 2012 for existing as well as new debt.    Performance Activities and Measures  2011 Actual 2012 Estimated 2013 Projected  Village’s Equalized Assessed  Valuation (in millions) 1,774 1,685 1,601  Tax Rate per $100 EAV for  GO debt $0.035 $0.047 $0.900     Village of Buffalo Grove 225 2013 Adopted Budget Revenue      Description   FY 2010  Actual    FY 2011  Actual    FY 2012  Budget    FY 2012 Est.  Actuals    FY 2013  Budget   Fund: 140 ‐Debt Service Fund  Revenues  10 ‐ Property Taxes  400.40 ‐ Lake County       164,233       260,166       216,651          216,000        216,651  400.41 ‐ Cook County      663,663       858,446       722,045          737,686        722,045  10 - Property Taxes 827,896 1,118,612 938,696 953,686 938,696 Percent Change 2013 vs. 2012 Budget 0.00% 45 ‐ Interest Income  450.05  Savings                  ‐                     ‐                 100                      ‐                     ‐    450.10 Investment Pool                  ‐                     ‐                   20                      ‐                     ‐    45 - Interest Income - - 120 - - Percent Change 2013 vs. 2012 Budget ‐100.00% 50 ‐ Miscellaneous Revenue  465.90 Miscellaneous Income                   ‐               (283)                 ‐                        ‐                     ‐    50 - Miscellaneous Revenue - (283) - - - Percent Change 2013 vs. 2012 Budget 0.00% 55 ‐ Operating Transfers  460.05 Interfund Transfers In       180,000       200,000       200,000          200,000        400,000  55 - Operating Transfers 180,000 200,000 200,000 200,000 400,000 Percent Change 2013 vs. 2012 Budget 100.00% Revenues Total 1,007,896 1,318,329 1,138,816 1,153,686 1,338,696 Percent Change 2013 vs. 2012 Budget 17.55%   Expense      Description   FY 2010  Actual    FY 2011  Actual    FY 2012  Budget    FY 2012 Est.  Actuals    FY 2013  Budget   Expenditures  Department: 85 ‐ Debt   25 ‐ Operating Expenses  510.04 Travel                  ‐                 175                   ‐                        ‐                     ‐   25 - Operating Expenses - 175 - - - Percent Change 2013 vs. 2012 Budget 0.00% 60 ‐ Debt Service  565.10 Principal       980,000   1,055,000       920,000          920,000        940,000  565.20 Interest       193,097       245,833       218,695          218,695        400,000  565.30 Paying Agent Fees            1,100            2,247            1,875               2,000             2,000  60 - Debt Service 1,174,197 1,303,080 1,140,570 1,140,695 1,342,000 Percent Change 2013 vs. 2012 Budget 17.66% Department Total: 85 - Debt 1,174,197 1,303,255 1,140,570 1,140,695 1,342,000 Percent Change 2013 vs. 2012 Budget 17.66% Expenditures Total 1,174,197 1,303,255 1,140,570 1,140,695 1,342,000 Percent Change 2013 vs. 2012 Budget 17.66% Village of Buffalo Grove 226 2013 Adopted Budget 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 Village of Buffalo Grove 227 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 228 2013 Adopted Budget Description Reference Municipal Commuter Station parking lot fees BGMC 3.52 (Ord. No. 2009-72, § 1, 11-2-2009) Citation and Compliance Violations BGMC 10.18(Ord. No. 2009-66, § 2, 10-5-2009) Vehicle Seizure and Impoundment BGMC 10.20(Ord. No. 2009-70, § 5, 11-2-2009) Citation Municipal Code Section or Title or Vehicle Code Section*Actual Fee Fee If Not Paid After 10 Days If Fee Goes to Collection Parking Failure to Pay Daily Parking Fee-Metra 3.52.020 20.00 25.00 50.00 Resident Parking Only Violation-Metra 3.52.040 20.00 25.00 50.00 Failure to Pay Daily Parking Fee-Township 3.52.055 20.00 25.00 50.00 Parking—After 2 inch Snow 10.08.010 20.00 25.00 45.00 Abandoned Auto Over 7 Days BG 4-101E.1 20.00 25.00 45.00 Parking on Parkway or Median BG-11-1303.C.1.20.00 25.00 45.00 Parking—Blocking Driveway BG-11-1303.C.2.b 20.00 25.00 45.00 Parking in Posted Fire Lane BG-11-1303.C.2.c.20.00 25.00 45.00 Parking on Street 2 am to 6 am BG-11-1308.1.20.00 25.00 45.00 Selling Vehicle on Street BG-11-1311 20.00 25.00 45.00 Daily fee 1.75 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 500.00 to the Village and all applicable towing fees are paid to the towing agent. Amount Administrative Fees Schedule Village of Buffalo Grove 229 2013 Adopted Budget Description ReferenceAmount Administrative Fees Schedule Handicapped Zone Parking IVC-5/11-1301.3 250.00 300.00 350.00 Parking—Blocking Sidewalk IVC-5/11-1303.(a).1.b.20.00 25.00 45.00 Parking—Within 15 feet of Fire Hydrant IVC-5/11-1303.(a).2.b.20.00 25.00 45.00 Parking—Within 20 feet of Crosswalk IVC-5/11-1303.(a).2.c.20.00 25.00 45.00 Parking—Within 30 feet of Traffic Control Device IVC-5/11-1303.(a).2.d.20.00 25.00 45.00 Parking Where Prohibited IVC-5/11-1303.(a).3.b.20.00 25.00 45.00 Parking in Loading Zone IVC-5/11-1303.(a).3.b.20.00 25.00 45.00 Parking over 12 inches from Curb IVC-5/11-1304.a.20.00 25.00 45.00 Parking - Left Wheels to Curb IVC-5/11-1304.a.20.00 25.00 45.00 Improper Recreational Vehicle Parking 17.36.030 20.00 25.00 45.00 Miscellaneous Traffic Code Violations IVC-5/1-100 et seq.20.00 25.00 45.00 Animals No Rabies Vaccination 6.12.010 20.00 25.00 45.00 No Dog or Cat License 6.12.020 100.00 100.00 100.00 Failure to Remove Excrement 6.12.060 20.00 45.00 125.00 Dog or Cat at Large 6.12.070 50.00 50.00 50.00 Dog or Cat at Large- Subsequent Offense 6.12.070 100.00 100.00 100.00 Excessive Number of Animals 6.12.080 20.00 25.00 45.00 Prohibited Animal 6.12.090 20.00 25.00 45.00 Excessive Dog Barking 6.12.150.D 20.00 25.00 45.00 Village of Buffalo Grove 230 2013 Adopted Budget Description ReferenceAmount Administrative Fees Schedule Miscellaneous Garbage-Out Too Early 8.20.070 20.00 25.00 45.00 Garbage-Unsecured 8.20.090 20.00 25.00 45.00 Illegal Dumping/Burning 8.20.100 20.00 25.00 45.00 Spitting 8.24.040 20.00 25.00 55.00 Weeds in Excess of 12 Inches 8.32.010.20.00 50.00 70.00 Grass in Excess of 6 Inches 8.32.010.B 20.00 50.00 70.00 No Valid Alarm Permit 9.04.020 20.00 45.00 45.00 Smoking in Enclosed Public Place 9.32.020 50.00 50.00 50.00 Smoking in Place of Employment 9.32.030 50.00 50.00 50.00 Smoking in Open Air Dining Area 9.32.040 50.00 50.00 50.00 Smoking at Entrance 9.32.050 50.00 50.00 50.00 Trespass Warning 9.48.020 0.00 0.00 0.00 No Village Sticker 10.04.020 20.00 25.00 45.00 Dumping Snow in Street 10.08.020 20.00 25.00 45.00 Sprinkling Ban Violation (12-6 pm)13.16.020 20.00 25.00 45.00 Signs on Village Property 14.40.070 20.00 25.00 45.00 Sign Code Violation Title 14 20.00 25.00 45.00 Village of Buffalo Grove 231 2013 Adopted Budget Description Amount Reference 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 Up to 500 sq. ft.50.00 Ord. 2008-048 501-1,000 sq. ft.75.00 Ord. 2008-048 1,001-2,000 sq. ft.125.00 Ord. 2008-048 2,001-3,000 sq. ft.175.00 Ord. 2008-048 3,001-4,000 sq. ft.200.00 Ord. 2008-048 4,001-5,000 sq. ft.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 Plumbing Permit Fees Water heater 50.00 Ord. 2008-048 Each sump pump pit 15.00 Ord. 2008-048 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 AMPS 7.00 each Ord. 2008-048 20 AMPS 12.00 each Ord. 2008-048 30 AMPS 20.00 each Ord. 2008-048 40 AMPS 25.00 each Ord. 2008-048 50 AMPS 30.00 each Ord. 2008-048 60 AMPS 40.00 each Ord. 2008-048 Building and Development / Health Fees Schedule Village of Buffalo Grove 232 2013 Adopted Budget Description Amount Reference Building and Development / Health Fees Schedule 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 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 partitions 50.00 Ord. 2008-048 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 Minimum mechanical fee 50.00 Ord. 2008-048 Village of Buffalo Grove 233 2013 Adopted Budget Description Amount Reference Building and Development / Health Fees Schedule 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 manlit (includes initial inspection) 125.00 Ord. 2008-048 Semi-annual inspection/Certificate of compliance: Each elevator, dumbwaiter, moving walk, escalator, conveyor or manlit 80.00 per inspection Ord. 2008-048 Repairs and reinspections 80.00 per inspection Ord. 2008-048 Plan review fee: Each elevator, dumbwaiter, moving walk, escalator, conveyor or manlit 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: 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: Village of Buffalo Grove 234 2013 Adopted Budget Description Amount Reference Building and Development / Health Fees Schedule 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 Fees Re-inspection fee 50.00 Ord. 2008-048 Work Prior Fees 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: Variation for principal structure 125.00 Variation – other than principal structure 75.00 All Multiple Family Dwellings: Variation for principal structure 175.00 Village of Buffalo Grove 235 2013 Adopted Budget Description Amount Reference Building and Development / Health Fees Schedule Variation – other than principal structure 125.00 All Business, Office/Research and Industrial Buildings: Variation for principal structure 175.00 Variation – other than principal structure 125.00 Fence Permit Fees First 100 lineal feet 20.00 Ord. 1995-015 Each addition 100 lineal feet or portion thereof 5.00 Ord. 1995-015 Fence Code Variation Fence variation application fee 75.00 Ord. 2003-032 Sign Permit Fees Wall sign non-illuminated 50.00 plus 0.25 a sq. ft.Ord. 2012-018 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 2,000.00 Ord. 2003-032 Village of Buffalo Grove 236 2013 Adopted Budget 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 200.00 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 text 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. Escrow for costs recoverable by the Village for review of petitions filed pursuant to Title 16 and Title 17 (except exemptions noted in Chapter 3.06.020.A.) 2,000.00 initial deposit filed with petition; additional payment as necessary to cover Village costs. BGMC Chapter 3.06.040. Planning and Zoning Fees Village of Buffalo Grove 237 2013 Adopted Budget Description Amount Reference Accident Reports 5.00 625 ILCS 5/11-416 Arrest Video 50.00 General Order P-08 Freedom of Information Act Request Free up to 50 pages 5 ILCS 140/6(a) Parking Violation paid within 10 days 20.00 Village Ordinance 10.18.040 Parking Violation after 10 days but before collection 25.00 Village Ordinance 10.18.040 Parking Violation after collection 45.00 Village Ordinance 10.18.040 DUI Vehicle Impoundment 500.00 Village Ordinance 10.20.010 False Alarms (within 1 year)Village Ordinance 9.4.80 First and Second 0.00 Third 75.00 Fourth 75.00 Fifth 75.00 Sixth 100.00 Seventh 100.00 Eighth 100.00 Ninth 100.00 Tenth 150.00 Eleventh 150.00 Twelfth 150.00 Thirteenth 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;) Police Department Fees Village of Buffalo Grove 238 2013 Adopted Budget Description Amount Reference Non-Residents BLS 575.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) ALS Level 1  625.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) ALS Level 2  900.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) Treat, Non-Transport 150.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) Mileage/mile   7.50 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) Residents BLS 425.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) ALS Level 1  500.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) ALS Level 2  600.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) Treat, Non-Transport    0.00 0.00 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) Mileage/mile   7.50 BGMC 3.36(Ord. No. 2009-23, § 1, 4-20-2009) Actual BGMC 8.48 (Ord. No. 1989-92) Actual personnel cost, including benefits, consultant, cost of equipment that is contaminated, material costs, contract or mutual aid costs, and attorneys fees. BGMC 8.56 (Ord. No. 2004-33) 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 Tv. 10/5/2011 Specialized Emergency Response Services CPR and First Aid Training Emergency Medical Service and Transportation Fee Hazardous Substance Removal and Abatement Fire Department Fee Schedule Village of Buffalo Grove 239 2013 Adopted Budget 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 one (1.00) dollar 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. Engineering Department Fees Village of Buffalo Grove 240 2013 Adopted Budget Description 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 1145.00 2 inch 400.00 2 inch 1336.00 2 ½ inch 625.00 3 inch 1720.00 3 inch 900.00 4 inch 2936.00 4 inch 1600.00 6 inch On call (currently 5,051.00) 6 inch 1800.00 8 inch 2000.00 10 inch 2200.00 Construction Values Fee 0.00 - 29,999.99 17.50 30,000.00 - 49,999.99 18.50 50,000.00 - 74,999.99 20.00 75,000.00 and up 20.00 + .25¢/1,000 in excess of 75,000 Size of Connection Fee 6 inch 50.00 8 inch 200.00 10 inch 300.00 Amount (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) Water Connection Fees Construction Water Charges Village Sanitary Sewer Tap-On Fees Village of Buffalo Grove 241 2013 Adopted Budget Structure Fee Townhomes 585.00 per unit Condominiums (Carriage Homes)485.00 per unit Multi-family Apartments 390.00 per unit Business, Commercial, Industrial 95.00 per 100 gallons of Maximum Daily Usage (gpd). (gpd) figure obtained from MSD Permit, etc. 3,400.00 per unit (one unit equivalent to 250 gpd) Single Family Dwelling (includes Duplex Units)680.00 per unit Water Systems Improvement Lake County Sewer Tap-On Fee Village of Buffalo Grove 242 2013 Adopted Budget 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 Authorities for each raffle. BGMC 5.09 (Ord. 88- 73 § 1 (part), 1988). 20.00 for six days or fewer 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 Annual Liquor License Fees Class A 2500.00 Class B 2300.00 Class C 2500.00 Class D 1800.00 Class E 1500.00 Class F 2000.00 Class G 100.00 Class H 250.00 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 fifty dollars 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) Business, Taxes Licenses and Regulations (Ord. 2003-24 § 1, 2003: Ord. 2003-19 § 2 (part), 2003).Arts and Crafts Vendor License BGMC 5.20 (Ord. 2008- 13 § 1, 2008) (Ord. 2004-83 § 1, 2004;) Village of Buffalo Grove 243 2013 Adopted Budget 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 purchase 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) Taxes Schedule Village of Buffalo Grove 244 2013 Adopted Budget Description Amount Reference Taxes Schedule Next 500,000 0.34 Next 2,000,000 0.32 Next 2,000,000 0.315 Next 5,000,000 0.31 Next 10,000,000 0.305 Excess of 20,000,000 0.30 The tax is in addition to all taxes, fees and other revenue measure imposed by the Village, the State of Illinois, or any other political subdivision of the State. BGMC 3.66(Ord. No. 2009- 90, § 2, 12-21-2009) 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) Municipal Electricity Use Tax Village of Buffalo Grove 245 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 246 2013 Adopted Budget 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 Village of Buffalo Grove 247 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 248 2013 Adopted Budget Fund Balance Use    Village Of Buffalo Grove  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.    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.    Village of Buffalo Grove 249 2013 Adopted Budget   B. The annual budget (appropriation) will include a contribution to (or drawdown from) the  Committed Fund Balance to assure compliance with this policy. The levels of other required  restrictions, commitments and assignments will fluctuate depending on activity.    C. Unassigned Fund Balance shall be reviewed annually and, where appropriate, a determination  will be made as to how much of the unassigned fund balance will be transferred to the Reserves  for Capital Replacement. Although the policy minimum is 25 percent for Committed Fund  Balance, 30 percent is considered the preferred balance and any unassigned balances exceeding  30 percent will be considered for transfer.    D. This policy may be amended from time to time according to the requests of the Village of  Buffalo Grove President and Board of Trustees.    E. The Village will spend the most restricted dollars before less restricted, in the following order;    a. Nonspendable Fund Balance (if funds become spendable)  b. Restricted Fund Balance  c. Committed Fund Balance  d. Assigned Fund Balance  e. Unassigned Fund Balance    F. The Finance Director will determine if a portion of fund balance should be assigned.    Purchasing Policy  *Revised December 2012    The purchasing of goods and services for the Village of Buffalo Grove should follow policies and procedures that  are designed to promote efficiency for each dollar spent. While the purchasing function has been decentralized to  the department level, basic processing of purchasing documents must continue. The policy of decentralized  purchasing hopefully creates a greater degree of responsibility and accountability upon the individual department  administrator. Purchasing is measured successfully by adherence to budgetary guidelines, cost efficiency and  continued goodwill between the Village and its vendors.    The purchasing procedures will encompass the following guidelines:    Authority to Purchase Under $100.00:  A Purchase Order Requisition can be utilized to purchase items approved and needed in their budget(s) of  responsibility up to $100.00 that are routed directly to the Department of Finance and General Services after  internal originating department approval.¬ Departments purchasing at this level are responsible for control and  use under any¬ purchasing directives established and amended from time to time.     Purchase Order Requisitions Over $100.00 to $2,500.00:  A Purchase Order Requisition should be processed for services or merchandise to be acquired for which funds have  been provided for within an annual budget. The Requisition must be prepared and forwarded as designated within  the Village’s Lotus Notes based Purchase Order Requisition program to authorized departmental personnel for  approval with pertinent information included. The Requisition will be forwarded to the Village Manager for  Village of Buffalo Grove 250 2013 Adopted Budget approval, further forwarded to the Department of Finance and General Services for final processing. Purchase  Order Requisitions will only be mailed to a vendor as indicated on the Requisition.     After approval, the Purchase Order Requisition will be processed as part of the Village’s overall accounts payable  system. A permanent record of any Requisition will be maintained within the Lotus Notes database with other  documentation maintained by the Department of Finance and General Services to support fiscal year financial  transactions. Disposal of those records will follow guidelines established procedurally and by statue by the State of  Illinois.    A Requisition should include any purchasing documentation such as comparative pricing quotations, price lists,  Village Board memos generated for legislative review and approval (bids or waivers), as well as any other pertinent  information related to the purchase to be made. That information can be entered as part of the "Comments"  section of the Requisition. If any item purchased is to be included within the Village’s fixed asset inventory, which  can also be indicated on the Requisition.    Purchase Order Requisitions Over $2,500.00 to $15,000.00:  Purchase Order Requisitions will be processed as above except comparative pricing in the form of quotes or price  lists must be sought and the unit price summary sheet shall be completed and attached to the Requisition or  indicated as part of the comments. It is understood that not all purchasing in this range will require comparative  pricing due to vendor limitations or service/merchandise to be purchased. However, in as many cases as possible,  this type of purchasing activity should be undertaken.    Purchase Orders $15,000.00 and Over:  Any purchase over $15,000.00 requires approval from the President and Board of Trustees with competitive  bidding except where specifically waived based on documented circumstances. These items will be reviewed by  the Village Manager who is required to receive two or more bids prior to bid authorization by the Corporate  Authorities, whose authorization will be based on the Village Manager's recommendations to the Board. If a bid  waiver is to be requested, written justification must be submitted by the purchasing department detailing the  reasons for such waiver.    The minimum requirements to be followed regarding bidding will relate to proper public notice for the call for bids,  the development of bid specifications with bid proposal forms, a scheduled public opening of any bids received,  tabulation, recommendation and eventual award. It should be noted that bids may be rejected in part or in total  based upon an analysis of the tabulation. Bidding documentation must be specific as to this option (rejection) as  they are developed. Various disclosure documentation may be required in any bidding situation relative to ethics,  etc. These forms are available departmentally or from the Village Attorney.    The only current exceptions of this procedure are for the purchase of motor fuels, water meters, and the use of  either state, federal, or council of government contracts (GSA or Central Management Services –CMS) that have  been obtained through a bid solicitation process that was conducted by those entities     Open Purchase Orders:  Open Purchase Order Requisitions will be authorized by the Village for those items purchased of a regular basis for  materials or services such as annual maintenance materials, alarm service agreements, capital programs that entail  periodic progress payments, and continuing professional service agreements to name a few. The use of open  Requisitions can reduce paperwork relative to purchasing but should be utilized only in those in¬stances when  ongoing, periodic purchases either under contract or of a consistent nature from one particular vendor are to  occur.          Village of Buffalo Grove 251 2013 Adopted Budget Non Purchase Order Requisition Purchasing:  There are certain vendors that provide services to the Village without Requisitions being generated. They are  usually utilities, internal fund transfers between departments or the return of deposits. However, every effort  must be made to generate the appropriate purchasing documentation.    Check Requests/Advance Check Requests:  The use of Advance Check Requests should be limited and only used in those circumstances where payment is  required ahead of the scheduled accounts payable cycle. Payment in advance of the public review, comment and  approval of the Village’s Accounts Payable Warrant limits further oversight as required by both state statute and  the Village’s Municipal Code. Advance Check Requests should be approved within the Department of origin as well  as by the Village Manager. Completed and approved requests will be processed by Finance.    Check Requests are for those payments that can be processed in the normal course of business. They are to be  used in lieu of an actual invoice for those type payments where invoices are not provided through a vendor.  Examples of those type transactions would include payments to employees, residents, and internal fund transfers.   It should be noted that Purchase Order Requisitions can be processed for these type of payments. This will permit  a continued accountability within that system. The only key is that a unique number be used as a proxy invoice in  that the system will flag duplicate invoice numbers as a matter of control to prevent duplicate payment.    Conclusion:  Any discrepancy in the purchasing function needs immediate resolution. Purchases of services, personal property  or materials should be evidenced by a Purchase Order whenever appropriate. Purchasing is an important function  needing proper control as part of the fiscal responsibility by the Village to its citizens, employees and vendors.     Village of Buffalo Grove 252 2013 Adopted Budget 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:  This investment policy applies to all financial assets of the Village of Buffalo Grove except for the Police and  Firefighter’s Pension Funds which are subject to those individual fund boards.     1. Pooling of Funds  Except for cash in certain restricted and special funds, the Village of Buffalo Grove will consolidate and reserve  balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment  pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their  respective participation and in accordance with generally accepted accounting principles.     III. General Objectives:  The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:    1. Safety    Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a  manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate  credit risk and interest rate risk    a) (a). Credit Risk    The Village of Buffalo Grove will minimize credit risk, which is the risk of loss due to the failure of the security  issuer or backer, by:    • Limiting investment to the types of securities listed in Section VII of this Investment Policy  • Pre‐qualifying the financial institutions, broker/dealers, intermediaries, and adviser with which the  Village of Buffalo Grove will do business in accordance with Section V  • Diversifying the investment portfolio so that the impact of potential losses from any one type of  security or from any one individual issuer will be minimized.    (b). Interest Rate Risk    The Village of Buffalo Grove will minimize interest rate risk, which is the risk that the marker values of securities in  the portfolio will fall due to changes in market interest rates, by:  • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing  operations, thereby avoiding the need to sell securities on the open market prior to maturity  • Investing operating funds primarily in shorter‐term securities, money market mutual funds, or similar  investment pools and limiting the average maturity of the portfolio in accordance with this policy (see  section VIII).    2. Liquidity  The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably  anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs  Village of Buffalo Grove 253 2013 Adopted Budget to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be  anticipated, the portfolio should consist largely of securities with active secondary or resale markets )dynamic  liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local  government investment pools which offer same day liquidity for short‐term funds.    3. Yield    The investment portfolio shall be designed with the objective of attaining a market rate of return throughout  budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on  investment is of secondary importance compared to the safety and liquidity objectives described above. The core  of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk  being assumed. Securities shall generally be held until maturity with the following exceptions:    • A security with declining credit may be sold early to minimize loss of principal.  • A security swap would improve the quality, yield, or target duration in the portfolio.  • Liquidity needs of the portfolio require that the security be sold.    IV. Standards of Care:    1. Prudence    The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be  applied in the context of managing the overall portfolio. Investment officers acting in accordance with written  procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for  an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a  timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this  policy.    2. Ethics and Conflicts of Interest    Officers and employees involved in the investment process shall refrain from personal business activity that could  conflict with the proper execution and management of the investment program, or that could impair their ability  to make impartial decisions. Employees and investment officials shall disclose any material interests in financial  institutions with which they conduct business. They shall further disclose any personal financial/investment  positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain  from undertaking personal investment transactions with the same individual with whom business is conducted on  behalf of the Village of Buffalo Grove.    3. Delegation of Authority    Authority to mange the Village of Buffalo Grove’s investment program is derived from the following:  The establishment of investment policies is the responsibility of the Village Board. Management and administrative  responsibility for the investment program is hereby delegated to the Finance Director who, under the direction of  the Village Manager, shall establish written procedures for the operation of the investment program consistent  with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment,  investment accounting, repurchase agreements, wire transfer agreements, collateral/depository agreements and  banking service contracts. Such procedures shall include explicit delegation of authority to persons responsible for  investment transactions. No person may engage in an investment transaction except as provided under the terms  of this policy and the procedures established by the Finance Director. The Finance Director shall be responsible for  all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate  officials. The Finance Director may from time to time amend the written procedures in a manner not inconsistent  with this policy or state statutes.  Village of Buffalo Grove 254 2013 Adopted Budget   The responsibility for investment activities of the Police and Firefighter Pension Funds rest with the trustees of the  respective fund boards.    V. Authorized Financial Institutions, Depositories and Broker/Dealers:    The Finance Director will maintain a list of financial institutions authorized to provide investment services. In  addition, a list will be maintained of approved security broker/dealers selected by credit worthiness. These may  include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule  15C3‐1 (uniform net capital rule). No public deposit shall be made except at a qualified public depository as  established by state statutes.    All financial institutions and broker/dealers who desire to become qualified become qualified bidders for  investment transactions must supply the Finance Director with the following:  • Audited financial statements demonstrating compliance with state and federal capacity adequacy  guidelines  • Proof of National Association of Security Dealers (NASD) certification (not applicable to Certificate of  Deposit counterparties)  • Proof of state registration  • Completed broker/dealer questionnaire  • Certification of having read the Village’s Investment Policy    VI. Safekeeping and Custody:    All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are  deposited in an eligible financial institution prior to the release of funds.    Securities will be held by an independent third‐party custodian selected by the Village as evidenced by safekeeping  receipts in the Village’s name. The safekeeping institution shall annually provide a copy of their most recent report  on internal controls (Statement of Auditing Standard No. 70, or SAS 70).    1. Internal Controls    The Finance Director is responsible for establishing and maintaining an internal control structure designed to  ensure that the assets of the Village of Buffalo Grove are protected from loss, theft or misuse. Details of the  internal controls system shall be documented in an investment procedures manual and shall be reviewed and  updated annually. The internal control structure shall be designed to provide reasonable assurance that these  objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not  exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and  judgments by management.    The internal controls structure shall address the following points:  • Control of collusion  • Separation of transaction authority from accounting and recordkeeping  • Custodial safekeeping  • Avoidance of physical delivery securities  • Clear delegation of authority to subordinate staff members  • Written confirmation of transactions for investments and wire transfers  • Dual authorizations of wire transfers  • Development of a wire transfer agreement with the lead bank and third‐party custodian  Accordingly, the Finance Director shall establish a process for annual independent review by an external auditor to  assure compliance with policies and procedures.  Village of Buffalo Grove 255 2013 Adopted Budget   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:    Village of Buffalo Grove 256 2013 Adopted Budget  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.    Reserve funds and other funds with longer‐term investment horizons may be invested in securities exceeding  three year if the maturities of such investments are made to coincide as nearly as practicable with the expected  use of funds.    Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should  be continuously invested in readily available funds such as LGIPs, money market funds, or overnight repurchase  agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations.    IX. Reporting:    The Finance Director shall prepare as investment report at least 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.  • Average weighted yield to maturity of portfolio.  • Listing of investments by maturity date.  • Percentage of total portfolio which each type of investment represents.    1. Performance Standards    The investment portfolio will be managed in accordance with the parameters specified within this policy. The  portfolio should obtain a market average rate of return during a market/economic environment of stable interest  rates. Portfolio performance should be compared to appropriate benchmarks on a regular basis. The benchmarks  shall be reflective of the actual securities being purchased and risks undertaken, and the benchmark shall have  similar weighted average as the portfolio.    2. Market Yield  The Village’s investment strategy is passive. Given this strategy, the basis used by the Finance Director to  determine whether market yield are being achieved shall be the six‐month U.S. Treasury Bill.      Village of Buffalo Grove 257 2013 Adopted Budget 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.       Village of Buffalo Grove 258 2013 Adopted Budget 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.   Enhances 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 Grove.     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 also issue long‐term debt for refunding of other outstanding debt for the purpose of  interest rate savings. As a guide, the minimum net present value savings shall be three percent (3%) of the  par value of the proposed new bonds to be issued. However, circumstances may occur where a refunding  may be advantageous with net present value savings of less than 3%. In those cases, approval of the  President and Board of Trustees will be required in order to proceed.   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 while 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  Village of Buffalo Grove 259 2013 Adopted Budget 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:    Village of Buffalo Grove 260 2013 Adopted Budget  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 Agencies:  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.       Village of Buffalo Grove 261 2013 Adopted Budget 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.  Also, generally accepted accounting principles as they apply to public entities require  the inclusion of financial data regarding fixed and general asset accounting within the Village’s Comprehensive  Annual Financial Report.    Assets included within a fixed asset control system should possess the following attributes:    1. They must be tangible  2. Have a useful life of greater than one year  3. Be of a "significant" dollar value    The general purpose given to recording fixed and general assets is to facilitate the protective custody of the  property.  A good system permits the fixation of responsibility of custody and for the proper use of specific assets  within the using department(s).  The taking of an actual physical inventory on a regular basis can increase the  control capabilities of the Village’s system and help insure overall integrity.  Other purposes usually cited for asset  control is:    1. Insuring assets for risk management purposes  2. Centralizing asset documentation and reporting systems  3. Developing estimates for asset replacement purposes  4. Allowing for completeness of financial statements  5. Providing for management of fixed assets regarding acquisition, declaration of surplus and disposition.    The end purpose of this Policy will be to provide a guide to the organization, inventory and reporting of data for  the Village of Buffalo Grove’s Fixed and General Asset Management System.    Asset Control Policy:    The following will apply regarding asset control policies for the Village of Buffalo Grove:    1. All assets acquired by the Village will be recorded within the Fixed Asset Management System maintained  within Lotus Notes as an independent database.  Assets to be controlled should be acquired as a capital  acquisition and possess a significant value.  The minimum value for control purposes will be $10,000 per  individual piece of equipment. Equipment carrying a value less than $10,000 will be accounted for internally  based the type of asset and upon the discretion of the Department Director. The capitalization threshold for   capital construction and/or infrastructure improvements will be $25,000.    2. The cost of the asset will include the actual purchase price plus any other additional charges incurred to put  the asset into service.  Absent any data on original cost, a realistic estimate will be used.  New capital  construction will be value as the sum of all charges and costs to put the asset into service.  3. Responsibility for all asset control will be assigned to the individual department.  All changes in the inventory  for whatever reason must be reported by that department.  Village of Buffalo Grove 262 2013 Adopted Budget 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 acquired by department personnel.  8. At a minimum once per year, an inventory will be conducted of all general fixed assets.  This will be prior to  the conclusion of the fiscal year and will be used for posting to the Village’s financial records and for  preparation of any surplus declaration.  9. Any final inventory values will be considered the official financial record of the Village subject to independent  review and audit.    Costing of General Fixed Assets:    General fixed assets should be recorded at their original cost; if original cost is unknown, an estimate will be  acceptable if reasonable and customary for similar assets.  As stated, an asset that is to be included within the  inventory should have a significant value.  The significant value test is mostly subjective, and accordingly, it is  necessary to exercise some level of judgement in determining which items should be treated as controlled assets.   The judgement will be minimized when controls are improved when capitalization policies are in place and  accepted.    Maintaining the System:    Accounting for additions can be accomplished through several methods.  Data from purchasing records for all  assets that are quantified are to be noted on the departmental requisition/purchase order for identification and  entry into the database.  Accounting for deletions can be more difficult because of trade‐ins, transfers,  retirements, loss or strip downs for spare parts.  The database will be considered the primary link between the  individual asset and the general ledger fixed asset accounts.  It should be possible to reconcile the detail in the  fixed asset database with the general ledger control account(s).  The basic elements to be included as part of the  asset record will be as follows:    1. Description of the asset  2. Model and serial numbers  3. Date acquired/deleted/changed  4. Purchasing department as well as location of the asset  5. Estimated useful life  6. Cost, purchase order number, vendor  7. Asset control number  8. 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:    Village of Buffalo Grove 263 2013 Adopted Budget 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  donation or acquisition that may be occur.  With an acquisition, a copy of the Record will be returned to the  purchasing department with an assigned control tag.        Village of Buffalo Grove 264 2013 Adopted Budget VILLAGE OF BUFFALO GROVE VILAGE OF BUFFALO GROVE FIVE YEAR OPERATING FORECAST FISCAL YEARS 2013-2017 The goal of the Five-Year Operating Forecast is to assess the Village’s ability over the next five years to continue current service levels based on projected growth with the intent to preserve THE Village’s long-term fiscal health, rebuild reserve balances and restore reserve funding for facility improvements. It is important to stress that this forecast is not a budget. It doesn’t dictate expenditure decisions, rather it identifies the need to prioritize allocations of Village resources. As a governmental entity, changes in strategy that involve service delivery are slow and methodical. The forecast provides a picture 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. This document should be viewed in conjunction with the annual Village Budget in order to make specific policy and spending recommendations. From a historical perspective, up until December 2007 the Village experienced two decades of prodigious growth. Property values increased 224%, the population nearly doubled, and the sharp increase in property values created pockets of wealth. The reinvestment of those dollars benefitted the Village in many ways including the collection of sales taxes, permitting fees for home improvements, and real estate transfer taxes collected on property sales. During December 2007, the national economy officially entered a recession, which was labeled as the worst since The Great Depression of 1929. The Village has been managing the recession progressively over the last four years. Fiscal years 2008 and 2009 relied heavily upon prior years’ accumulated fund balance reserves. Those reserves were established during the peak growth years as a result of conservative spending by both the members of the current and past Village Boards. FY 2010 and 2011 began a transition from tactical budget strategies and short term spending adjustments to a more strategic progress of addressing Village of Buffalo Grove 265 2013 Adopted Budget systemic costs focusing both on sustainability of services and maintenance of infrastructure, as well as elimination or reductions of structural deficits. Financial Focus The General Fund (or Corporate Fund) is the operating fund which pays for the core services provided by the Village including public safety (police & fire), public works, building & zoning, and administration. All major discretionary revenues such as property taxes, sales tax, income taxes, telecommunications, and utility use taxes are accounted for within the General Fund. The forecast reflects final figures for fiscal year 2011. For purposes of the analysis, forecasted numbers are built off of the 2011 actual revenue/expenditures and adjusted if necessary for FY 2012. The General Fund is the primary focus of the forecast as it represents about 57 percent of the funding for Village operations. In 2012 a twenty-year water rate proforma was presented to the Village Board and it set the basis for water rate recommendations for FY 2013 and into the future. Overview of Fiscal Year 2011 & 2012 The impact of the recession, although declared officially over in June 2009, continues to exert fiscal pressure on the Village. Steps to address the strain on the operating budget include: Staff was able to present a balanced budget in FY 2011 amidst a continued turbulent economy. The following strategies were taken in preparation of the 2011 Budget;  Eliminated or deferred $2 million in capital improvements  Reduced transfers to capital reserve funds by $.6 million  Created a Voluntary Separation Initiative (VSI) to induce retirement and reduce employee counts through attrition  Construction of a Tier II compensation plan to lower entry level salaries across all pay grades. Budget initiatives for FY 2012 included;  Deferred $2.2 million in capital improvements  Reduced transfers to capital reserve funds by $.6 million  Offered a second Voluntary Separation Initiative (VSI) to continue the savings pattern of retirements offset by lower entry salaries or hiring deferral/elimination.  Entry into the Intergovernmental Professional Benefits Cooperative for health insurance combined with continuing escalation of employee’s premium contributions. Village of Buffalo Grove 266 2013 Adopted Budget  Hiring of a Purchasing Manager to begin the process of centralized purchasing and cost control. The Village will continue to face similar financial challenges for the remainder of FY2012 and for the next several years including: 1. Impact of the real estate market. Traditional sales activities are slowly rebounding as a market bottom has appeared to be reached. The impact of declining property values in tandem with incorrect assumptions that property taxes will move in similar fashion is making it difficult to grow the tax levy to support general operations. 2. State of Illinois budget crisis. The delay in income tax distributions to the Village has crated a backlog of receivables owed the Village totaling $1.2 million. 3. Health Care Cost and the Reform Bill. The future financial impact of the new bill and increasing health care costs. 4. Commercial/Retail Development. The economy’s impact on existing sales tax generators as well as development or redevelopment of Dundee, Milwaukee Road corridors and Lake Cook Corridors. 5. Infrastructure. The deferral of capital spending and the funding impacts upon roads, sidewalks and bike paths, water system, and Village facilities. The Village Board has taken the initial steps to addressing street maintenance through the issuance of $6 million in bonds. Forecast Assumptions The following are growth percentage assumptions used in the development of the financial forecast, Village of Buffalo Grove 267 2013 Adopted Budget FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Revenues Property Tax Corporate 2.9% 2.9% 2.9% 2.9% 2.9% Police Pension 4.0% 5.0% 5.0% 5.0% 5.0% Fire Pension 4.0% 5.0% 5.0% 5.0% 5.0% Sales Tax (combined) 2.0% 2.0% 2.0% 2.0% 2.0% Prepared Food & Beverage Tax 2.0% 2.0% 2.0% 2.0% 2.0% Income & Use Tax 2.0% 2.0% 2.0% 2.0% 2.0% Utility Use Tax 0.0% 0.0% 0.0% 0.0% 0.0% Telecommunications Tax -2.0% -2.0% 0.0% 0.0% 0.0% Licensing 0.0% 0.0% 2.0% 2.0% 2.0% Developer Fees & Permits 1.0% 1.0% 1.0% 2.0% 2.0% Real Estate Transfer Tax 5.0% 5.0% 5.0% 5.0% 5.0% Fines and Fees 0.0% 0.0% 0.0% 0.0% 0.0% Operating Transfers 2.0% 2.0% 2.0% 2.0% 2.0% All Other Revenues 0.0% 0.0% 0.0% 0.0% 0.0% Expenditures Personal Services 3.0% 3.0% 2.0% 2.0% 2.0% Personal Benefits 6.0% 5.0% 5.0% 5.0% 5.0% Operating Expenses 1.5% 1.5% 1.5% 1.5% 1.5% Insurance 8.0% 7.0% 6.0% 5.0% 5.0% Legal Services 1.0% 1.0% 1.0% 1.0% 1.0% Commissions & Committees 2.0% 2.0% 2.0% 2.0% 2.0% Commodities 2.0% 2.0% 2.0% 2.0% 2.0% Maintenance & Repair Facilities 5.0% 5.0% 5.0% 5.0% 5.0% Other 1.5% 1.5% 1.5% 1.5% 1.5% Vehicles 2.0% 2.0% 2.0% 2.0% 2.0% Capital Equipment 1.0% 1.0% 1.0% 1.0% 1.0% Capital Projects-Facilities 1.0% 1.0% 1.0% 1.0% 1.0% Operating Transfers 2.0% 2.0% 2.0% 2.0% 2.0% All Other Expenses 2.0% 2.0% 2.0% 2.0% 2.0% Village of Buffalo Grove 268 2013 Adopted Budget The forecast assumptions were applied to the current year’s budget producing the following schedule; 2013 2014 2015 2016 2017 General Fund Revenues Projected Projected Projected Projected Projected Property Taxes 12,066,968 12,290,209 12,736,427 13,200,132 13,682,058 State Income Taxes 3,702,450 3,776,499 3,852,029 3,929,070 4,007,651 State Sales Tax 4,042,755 4,123,610 4,206,082 4,290,204 4,376,008 Home Rule Sales Tax 3,264,000 3,329,280 3,395,866 3,463,783 3,533,059 Real Estate Transfer Tax 500,000 525,000 551,250 578,813 607,753 Telecommunications Excise Tax 2,013,972 1,973,692 1,973,692 1,973,692 1,973,692 Prepared Food and Beverage Tax 754,143 769,226 784,611 800,303 816,309 Para Mutual Tax 0 0 0 0 0 Utility Tax-Electric Service 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 Utility Tax-Natural Gas Therms 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Business Licenses 144,025 144,025 146,906 149,844 152,840 Liquor Licenses 126,145 126,145 128,668 131,241 133,866 Building Revenue & Fees 882,251 893,107 902,038 920,079 938,480 Intergovernmental Revenue-Local 226,625 229,756 232,960 236,239 239,595 Investment Revenue 107,469 90,346 97,337 114,584 135,789 Fines & Fees-Police & Fire 1,414,650 1,414,650 1,414,650 1,414,650 1,414,650 Operating Transfers 719,100 733,482 748,152 763,115 778,377 All Other Revenue 823,297 838,886 854,787 871,006 887,549 Miscellaneous Revenue 333,370 333,470 334,784 336,110 337,451 Total Revenues 33,671,220 34,141,384 34,910,237 35,722,863 36,565,127 2013 2014 2015 2016 2017 General Fund Expenditures Projected Projected Projected Projected Projected Personal Services 19,629,696 20,217,417 20,620,985 21,032,625 21,452,497 Personal Benefits 3,953,297 4,137,623 4,331,042 4,534,006 4,746,991 Operating Expenses 1,013,208 1,028,377 1,043,774 1,059,401 1,075,263 Insurance 441,229 472,115 500,441 525,464 551,737 Legal Services 280,362 282,079 283,814 285,566 287,335 Commissions & Committees 82,723 84,377 86,065 87,786 89,542 Commodities 504,050 514,131 524,413 534,902 545,600 Maintenance & Repairs-Facilities 743,200 780,360 819,378 860,347 903,364 Maintenance & Repairs -Water & Sewer 5,500 5,775 6,064 6,367 6,685 Maintenance & Repairs-Other 79,303 80,493 81,700 82,926 84,170 Maintenance & Repairs-Vehicles 619,325 631,711 644,345 657,232 670,377 Capital Equipment 714,633 716,779 718,947 721,137 723,348 Capital Projects-Facilities 60,530 61,136 61,747 62,364 62,988 Operating Transfers 5,832,937 5,439,497 5,579,821 5,829,737 6,089,291 All Other Expenses 1,058,260 1,079,426 1,101,014 1,123,034 1,145,495 Total Expenditures 35,018,252 35,531,295 36,403,551 37,402,893 38,434,683 Surplus/(Deficit) (1,347,032) (1,389,912) (1,493,313) (1,680,030) (1,869,556) Unreserved / Undesignated Fund Balance December 31, 2011 (audited) 9,871,895 December 31, 2012 (estimated) 9,871,895 December 31, 2013 (estimated) 8,524,863 December 31, 2014 (estimated) 7,134,951 December 31, 2015 (estimated) 5,641,638 December 31, 2016 (estimated) 3,961,608 December 31, 2017 (estimated) 2,092,052 Village of Buffalo Grove 269 2013 Adopted Budget General Fund Reserves The General Fund Fund Balance Reserve Policy sets forth a minimum reserve level of 25 percent of the subsequent year’s budget (less pension transfers). That policy was amended in FY 2009, from 35 percent with the goal in mind to reestablish the 35 percent threshold as quickly, and prudently, as possible. Reserves are important in order to mitigate the negative impact on revenues from economic fluctuations, to withstand unfunded mandates, to temper lags in payables from the State of Illinois and to fund unforeseen capital expenditures. The Village, through cautious and prudent spending plans, was able to build substantial reserves during the last two decades. Approximately $5.3 million of those reserves were used from 2007 to 2009 allow for the Village to provide uninterrupted high quality services to the community. Fiscal years 2010 and 2011 focused on balancing the budget and curtailing the draw on reserves. At the end of the Fiscal year 2011, the reserve stood at $9,871,895 and represents 33.8 percent of the annual budget. The following chart provides a history of fund balance reserves with the five forecasted years; Village of Buffalo Grove 270 2013 Adopted Budget As evident in the chart, the budget strategies employed over the last two years helped to stabilize the precipitous drop in fund balance. Those efforts alone are not enough to support General Fund operations over the next five years. If there is no significant new, or increased, sources of revenue there will need to be decisions about prioritizing programs and eliminating those functions that are not core services. There is little more on the expenditure side of the equation that can be reduced without impacting service delivery. Revenue Review Approximately 85 percent of all General Fund revenue is generated from seven revenue sources including property tax, combined sales tax including prepared food and beverage, income and use tax, telecommunications tax, utility (natural gas & electricity) use tax and real estate transfer tax. Almost half of the Village’s major revenue sources are elastic. Elastic revenues are those sources that tend to fluctuate with the economy dependent upon the general direction of the economy. A balance between elastic and inelastic revenue is desired as a hedge against market volatility. General Fund revenues considered to be elastic include: sales and use taxes, income taxes, telecommunications tax, real estate transfer tax, building revenue and fees, and investment income. (10) (5) - 5 10 15 20 25 8 9 - 9 0 9 0 - 9 1 9 1 - 9 2 9 2 - 9 3 9 3 - 9 4 9 4 - 9 5 9 5 - 9 6 9 6 - 9 7 9 7 - 9 8 9 8 - 9 9 9 9 - 0 0 0 0 - 0 1 0 1 - 0 2 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 Do l l a r s i n M i l l i o n s Fund Balance Review Unassigned Fund Balance Stop Threshold Reserve Funds above/below Threshold 2 per. Mov. Avg. (Unassigned Fund Balance) 2 per. Mov. Avg. (Reserve Funds above/below Threshold) Village of Buffalo Grove 271 2013 Adopted Budget The property tax is an example of a non-elastic source of revenue as collections are stable and predictable. The following is a summary of significant Village revenue sources. Property Tax Growth in the corporate property tax levy is tied to the Municipal Cost Index (MCI). The MCI is an amalgam of several key inflationary indices including the Producer Price Index (PPI), Employment Cost Index (ECI), and the Consumer Price Index –Urban (CPI-U). The MCI weights the indices accordingly based on how a typical municipality spends its resources. The Police and Firefighter Pension Funds levies are calculated by an independent actuary. The pension levies are pass- through revenues that will have a corresponding expenditure. A continuing concern is growth in the property tax base. Tax year 2010 produced the first drop (6.47 percent) in assessed valuation since 1974. Tax year 2011 continued the decline (6.18 percent) and the expectation is for a similar drop in tax year 2012. Because the Village levies dollars, a uniform change across all property classifications has no financial impact to tax payers. The concern is the shifting of tax burden from commercial/industrial properties to residential parcels as commercial/industrial properties tend to be better represented in the appeal process. This dynamic has been noted by several property owners in both Cook and Lake Counties that have witnessed the Village portion of their tax assessments increase by nearly ten percent even though the actual dollars levied were less than the previous year. Listed below is a history of equalized assessed valuations since 2003. Village of Buffalo Grove 272 2013 Adopted Budget Sales Tax Inflation sets the growth baseline for both the base (2%) and home rule sales taxes (2%). 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 the Village limits. 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. Adjusted for inflation, state sales tax revenues are down 22 percent from the peak in 2001 as demonstrated in the chart below. 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 2003 2004 2005 2006 2007 2008 2009 2010 2011 Equalized Assessed Valuation Cook County Total EAV Lake Couty 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Base Sales Taxes History - Net Incentives and CPI Village of Buffalo Grove 273 2013 Adopted Budget Income Tax The impact of the 2010 US Census had a deleterious impact on revenues. As a result of the census data, the Village’s populations declined by 1,699 residents. Since income tax is distributed on a per capita basis the impact for 2012 was a $152,111 drop in revenue. The Village’s estimated unemployment rate is 7.1 percent, Lake County is 9.7 percent, and the State of Illinois is 9.2 percent. The forecast does not account for much change during FY 2013 in the level of reported wages and corporate earnings. 2 percent growth is estimated for the years 2014-2017. Prepared Food and Beverage Tax This tax 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 2 percent annually. 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. Combined with the economic decisions to consolidate, or eliminate, additional phone lines revenue is down almost 20 percent from the peak in 2007. VOIP is subject to this taxation. It is projected that revenue will drop 2 percent in 2013 and level out the remaining four years. Utility Use Tax (Natural Gas & Electricity) Natural gas and electricity charges are based on consumption and will fluctuate with seasonal demands. The Village is charging the highest statutory rate. No growth is projected over the next five years. Any new growth will correspond to added roof tops within the corporate boundaries. 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 60 percent as a result of the collapse of the housing market. From a local perspective it appears that the market has reached a bottom as more traditional sales are being transacted in the Village. It is expected that Village of Buffalo Grove 274 2013 Adopted Budget some growth will occur (5% per year over the next five) as pent up home inventories being to decline. Expenditure Review The average annual increase in expenditures over the next five years is 3.1 percent. In each of the next five years, wages and benefits account for nearly 70 percent of all expenditures. The next largest expenditure account group is for operating transfers (16 percent). For FY 2013 the distribution of Corporate Fund expenditures is shown in the table below. Personal Services Wages are anticipated to increase by a factor of 3 percent for the first two years and 2 percent the last three years. The wage forecast anticipates the general wage increase awards plus possible merit adjustments, where appropriate, offset by lower entry salaries under a new pay grade system (Tier II). The Tier II pay grade lowers all starting salaries for employees hired after 1/1/2011 by approximately 10%. The five year forecast will likely need several iterations to reflect new data as the impact of retirements, the effect of any service realignments, and any hiring decisions become more evident. Personal Benefits The largest single expenditure within Personal Benefits is for group medical and life insurance. Effective for FY 2012, the Village has committed to 3 years with the Intergovernmental Professional Benefits Cooperative (IPBC) to help stabilize medical costs through risk pooling and provide for a General Fund Expenditures FY 2013 Projected Operating Expenses 3% Insurance 1% Commodities 1% Legal Services 1% Personal Benefits 12% Maintenance & Repairs- Facilities 4% Capital Equipment 2% Operating Transfers 16% All Other Expenses 4% Personal Services 56% Personal Services Personal Benefits Operating Expenses Insurance Legal Services Commodities Maintenance & Repairs-Facilities Capital Equipment Operating Transfers All Other Expenses Village of Buffalo Grove 275 2013 Adopted Budget mechanism to help establish positive cash flow and rebuild reserves. The forecast calls for 6 percent growth each year in premium expenses the first year, and 5 percent the following years. The projected growth factors in the escalating employee premium contributions and continued efforts to develop affordable plans. Insurance Within the Insurance category is the premium paid to the Intergovernmental Risk Management Pool (IRMA) for Corporate liability and workers’ compensation coverage. Continuing with past practice, the Village has selected a higher deductible ($50,000) to provide a credit against our annual premium. Prior period reserves have also been used to lower the annual payment. The forecast assumes growth of 8%, 7%, 6%, 5%, 5%. The higher growth on the front end of the forecast is to offset a slowing in the amount of reserves available for premium subsidy. 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% 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 – Facilities Expenditure growth in this account group is estimated to be 1 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, and parkway trees. The budget for sidewalk and bike path repairs was increased from $150,000 to $325,000 in FY 2012. What is not established in this five year proforma is the amount necessary to start building a reserve for facility repairs. Those amounts will be calculated in FY 2013 with inclusion in the next iteration of the plan. Capital Equipment The largest expenditure within Capital Equipment is for the funding of the Reserve for Capital Replacement. Transfers are made out of the department operating budgets to the reserve to fund the future acquisition of heavy machinery and vehicles. This approach is taken to smooth out the peaks and valleys in the budget. The replacement of rolling assets is not linear and there are years where replacements are as high as $2.2 million and as low as $.4 million. The reserve requirement is fairly consistent and is intended to hedge against spikes in the budget. Each asset’s useful life is tracked with the goal that the annual depreciation is funded through the reserve transfer so that at the time equipment must be replaced it is fully funded. Village of Buffalo Grove 276 2013 Adopted Budget Over last few years, the economic climate necessitated the suspension of this transfer to help close or eliminate budgeted deficits in the Corporate Fund. The reserve balance at the end of FY 2010 was $7.9 million. The value of all equipment is $15.3 million representing 52% funding. The following chart is an estimate of the source and use of funds over the next five years. The scheduled purchases are due to be replaced but there may be some flexibility in extending the useful lives of select pieces of equipment if the cost of repair does not exceed what would be prudent for an asset nearing the end of its useful life. FY Reserve Transfer In Purchase Balance 2012 7,330,045 400,000 (1,149,400) 6,580,645 2013 6,580,645 400,000 (1,230,000) 5,750,645 2014 5,750,645 400,000 (1,151,000) 4,999,645 2015 4,999,645 400,000 (375,000) 4,974,645 2016 5,024,645 400,000 (490,000) 4,934,645 2017 4,934,645 400,000 (800,000) 4,534,645 Operating Transfers Within this account group are transfers to the Debt Service Fund for tax abatements, to Capital Projects Funds for project funding, the 20% transfer of home rule sales tax to the Motor Fuel Tax Fund, subsidy transfers to the golf courses, and the Police and Firefighter transfer (pass-through). There are no General Fund tax abatements programmed for the next five years. There is an estimated equity transfer to the Golf Enterprise of $250,000 per year. The following transfers have been made over the last five years, Fiscal Year Subsidy Amount 2011 $352,000 2010 668,000 2009 0 2008 775,000 2007 205,141 2006 258,601 Village of Buffalo Grove 277 2013 Adopted Budget VILLAGE OF BUFFALO GROVE TO: Dane C. Bragg, Village Manager FROM: Scott D. Anderson, Finance Director DATE: April 25, 2012 RE: Water Fund 20 Year Pro Forma / Rate Recommendations Recommendation: Staff recommends a series of water rate increases to be approved that at minimum will stabilize the working cash balance within the fund. Three options will be presented within the report and are structured to achieve different funding goals Rate and Consumption Background: The Village has had a long history of consistently low user rates in comparison to the communities in the region; in fact, the Village maintained a combined 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 fees, coupled with a period of growing water consumption, the Water Fund was able to generate strong cash reserves to allow for a strategy of pay-as-you-go financing for future infrastructure repair. Funding for future infrastructure replacement (funding depreciation) was never a component of the rate structure. Beginning in 2003, a pattern of declining water usage started. In 2002, 1.63 billion gallons of water were metered with an average monthly consumption rate of 7,906 gallons. In 2011, 1.3 billion gallons were metered with an average monthly consumption of 6,340 gallons. The following chart shows the average monthly water consumption since 1990. 4,000 5,000 6,000 7,000 8,000 9,000 10,000 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Ga l l o n s Average Monthly Usage - Residential Village of Buffalo Grove 278 2013 Adopted Budget The outlier in FY 2005 was drought induced. Absent that year, a fairly linear decline began after FY 2002. 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 capital construction. A second rate increase of 25 percent to $3.00/$1,000 percent was approved for 2010. Again the increase helped to ensure that water sales would offset operating expenditures. The drop in water consumption appears to have reached bottom in 2009. The reason for the decline is likely due to a confluence of factors. Economic conditions have led to more vacant homes or more judicious use of water. The region has had a series of mild summers that has tempered the demand for outdoor irrigation water. The final factor is the institution of energy efficient appliances. For the planning of this pro-forma, it is estimated that the current fiscal year will close at 1.31 billion gallons sold 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 will likely 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. 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 2007 the following capital expenses will have occurred by the end of the current fiscal year; Johnson Drive lift station 240,886 Linden Avenue lift station 402,153 Cambridge on the Lake lift station 160,049 Buffalo Creek water main 86,682 Arlington Heights water main 581,631 Reservoir #7 1,777,682 Security Improvements 640,000 Total $ 3,889,083 Until FY 2007, the Water and Sewer Fund maintained a cash and investment balance of approximately $10 million. That balance was accrued with the intention to cash finance capital projects in the future. As planned, those reserves are being used to pay for almost $4 million in infrastructure repairs and improvements. The following chart depicts the Water Fund’s cash activity since 2002. Given the current trajectory of revenues and expense within the fund the resultant cash balance will be in a deficit by the third quarter of 2013. If the rates are not increased to stabilize the fund, the Village will need to establish an inter-fund loan transfer from the Corporate Fund to the Water Fund. This should only be considered as a worst case course of action. An enterprise fund by its very nature is intended to recover its cost of operations through user charges. The establishment of an inter-fund loan would be questioned by the bond rating agencies as a weakness of the fund and it would be extremely Village of Buffalo Grove 279 2013 Adopted Budget important to eliminate the loan as quickly as possible. All options presented will all address the operating deficits and repair the fund cash reserves to varying degrees. . The finance department has prepared a twenty year pro forma of the Water and Sewer Fund that factors for not only anticipated revenues and operating expenses but also capital expenditures that go beyond the revolving five-year Capital Improvement Plan. Water and Sewer System Assets: The first step in the process was to determine the replacement cost of the water main system. The system consists of 181 linear miles of main. The value of the main system 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 at the end of the 20 year study, inflated at 3% per year, is $773 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 1962 has a replacement cost of about $372,000; we then forecast that $94,000 in repairs. This cost estimate compensates for the improbability that the entire section will be replaced. The estimates reflect rolling replacements where in certain instances only sections are repaired. Another factor for consideration is that the replacement cost includes a curb-to-curb street reconstruction. About 50 percent of that expense will be charged to the Capital Projects Street Fund or the Motor Fuel Tax Fund. Within the straight line depreciation calculation beginning with the oldest main constructed in 1929, the first replacement should have occurred in 1979. Approximately $10 million in water mains have ‘expired’ but have not needed to be repaired. Estimating the actual asset life at times is more abstract than qualitative. Pipe that is ensconced in stable soil and subjected to consistent water pressure may have a service life that may double an engineering estimate, and conversely, shifting soils may reduce the life by many years. The following chart shows the pattern of construction of water main since 1929. ($20,000,000) ($15,000,000) ($10,000,000) ($5,000,000) $0 $5,000,000 $10,000,000 $15,000,000 Water Fund - Cash Balance Working Cash - No rate increase Village of Buffalo Grove 280 2013 Adopted Budget 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 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 pro forma, the FY 2012-2016 Capital Improvement Plan was added to the calculation. Beyond 2016, a flat amount is budgeted each year to address sanitary sewer system and lift station repairs. 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 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 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 Village of Buffalo Grove 281 2013 Adopted Budget Water Rate Recommendations: The pro forma was developed around an annual consumption base of 1.31 billion gallons. Operating expenses were built upon the FY 2012 budgets and indexed for inflation. For operating expenses, 3 percent inflation is growth target. The same inflation was used to index the capital improvement plan maintenance program for the sewer system. As part of the analysis, a working cash threshold was established at 25% of the operating budget of the water and sewer fund net of pass through revenue/expenses activity related to Lake County Public Works. At minimum, the fund must strive to always have three months worth of expenses in the bank to ensure the Village meets its obligations to the Northwest Water Commission. The Water Fund had nearly $4.6 million in cash at the end of 2011. The working cash threshold is $1.1 million. The difference between the two is noted as net reserve over/(under) working cash and represents cash available for infrastructure repairs and improvements. It is anticipated the much of the $3.5 million difference will be used to complete the deep well construction at reservoir #7 and improvements to lift stations. The ending cash balance in 2012 is budgeted to be $1.8 million. The following options for water rate increases are proposed for Village Board consideration. A copy of the pro-forma for each option is attached to this narrative. The reference to combined water/sewer rate is for village water and sewer charges. It does not include Lake County sanitary sewer fees for system charges through the Metropolitan Water Reclamation District (Cook County). For all three options, another variable to consider is the timing of the first increase. Obviously, the sooner the increase to water rates the better. From a practical perspective some things to consider are, (1) an increase effective during the peak usage months (summer) will generate an immediate impact of the rate increase, (2) an increase this fall will be perilously close to the utility billing module being rolled out to the community with the perception that the new software/customer enhancements caused the rate increase, and (3) Lake County Public Works is conducting a formal rate study and will likely be making a recommendation to institute rate increases on sanitary sewer collection. OPTION 1 This option includes a 35 percent increase to the combined water rate the first year, 30 percent increase the second year and 3 percent increase every year thereafter. The final rate in 2031 will be 8.30 or a 170 percent increase. What is accomplished? A minimum working cash balance is maintained through the 20 year pro-forma. All anticipated infrastructure repairs are paid with fund reserves (pay-as-you go). No significant capital reserve is established beyond working cash balances. What isn’t accomplished? A reserve for significant capital improvement (beyond maintenance) is not established. OPTION 2 This option is an effort to reduce the initial impact of the needed rate increases by developing a rate that will only cover operating expenses. Debt will be issued to cover all capital maintenance and improvements. Option 2 calls for a 20 percent increase the first year, 20 percent the second year, and 5 percent each year thereafter. A series of debt issues would occur in 2013 ($8,000,000), 2018 ($10,000,000) and 2022 ($22,500,000). The final rate in 2031 will be 10.37 or a 245 percent increase. Village of Buffalo Grove 282 2013 Adopted Budget What is accomplished? A minimum working cash balance is maintained through the 20 year pro-forma. The first two year rate increases are reduced by 25 percent What isn’t accomplished? A reserve for significant capital improvement (beyond maintenance) is not established. The end rate is $2.07, or 25 percent, more than option 1 at the end of the study. OPTION 3 This option includes a 35 percent increase in the first year and 30 percent the second year similar to option 1. This difference is a 4% annual adjustment thereafter. The final rate in 2031 will be $10.26 or 242 percent increase. What is accomplished? A minimum working cash balance is maintained through the 20 year forma. A capital reserve is developed that will allow for flexibility in responding to emergency repairs or capacity improvements. What isn’t accomplished? This option addresses most of the issues regarding the rate deficiency. The chart below shows the impact of each option on the Water Fund’s cash reserves. Comparative Rates Listed on each option pro-forma is a listing of combined water rates for the Northwest Water Commission communities (Arlington Heights, Palatine and Wheeling). For comparison purposes these Village have cost structures similar to Buffalo Grove and provide for a good basis for analysis. Currently these are the member rates; $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Rate Options and Related Impact on Cash Reserves Option 1 Option 2 Option 3 Working Cash Needs Village of Buffalo Grove 283 2013 Adopted Budget Buffalo Grove $3.00/1,000 gallons Arlington Heights $5.05/1,000 gallons Palatine $4.80/1,000 gallons (resident) $10.83/1,000 gallons (tax exempt property) $13.34/1,000 gallons (extra-territorial) Wheeling $6.30/1,000 gallons Included in the chart below are the water rates of other communities. Each community had a rate increase for the current fiscal year. The chart below is a listing of water rates, not including local sewer rates, for other regional municipalities. All rates are reported per 1,000 gallons; Clarendon Hills 7.93 Lombard 4.68 Hinsdale 7.67 Park Ridge 4.67 Oakbrook Terrace 7.14 Wheeling 4.65 La Grange 7.07 Des Plaines 4.56 Rolling Meadows 6.36 Hanover Park 4.55 Winfield 6.26 Bloomingdale 4.40 Glen Ellyn 6.04 Hoffman Estates 4.38 Bensenville 5.95 Glencoe 4.37 Villa Park 5.95 Roselle 4.20 Lake Bluff 5.85 Downers Grove 4.18 Wood Dale 5.84 Itasca 4.11 Vernon Hills 5.69 Glendale Heights 4.06 Morton Grove 5.34 Arlington Heights 4.03 Schaumburg 5.32 Westmont 4.00 Grayslake 5.21 Carol Stream 3.88 Elk Grove Village 5.10 Woodridge 3.66 Niles 5.05 Northbrook 3.40 Glenview 5.00 Naperville 3.17 Oak Brook 4.99 Wilmette 3.17 Elmhurst 4.95 Palatine 3.15 Darien 4.90 Wheaton 3.12 Mount Prospect 4.87 Highwood 2.65 Lake Forest 4.79 Buffalo Grove 2.40 Libertyville 4.79 Highland Park 2.25 Willowbrook 4.79 Evanston 2.03 The average water rate is $4.73. Buffalo Grove rates are 49.9% less than that rate. The median rate is $4.74. The two communities that have a lower rate than Buffalo Grove access Lake Michigan water directly. If the Village had indexed its 1983 rate of $1.80 to inflation the rate in 2013 would have been $4.26. The rate recommended under both options 1 and 3 have a rate of $4.05 in 2013. Below is a comparison of the actual water rate versus indexed rate since 1983. Village of Buffalo Grove 284 2013 Adopted Budget If the Village took the approach to index the water rate to inflation in 1983, the result would have been an additional $43.6 million in revenue. Staff believes that both options 1 and 3 provide a solution for working cash needs. Option 3 gives more flexibility for deviations in the pro-forma. There are no solutions that can delay a significant rate increase in the first two years. The Village must start imposing a rate that is, at minimum, similar to other NWWC members with similar expense profiles. The use of level (inflation) increases each year beyond the first two year is important to minimize future rate spikes and get customers accustomed to an annual rate increase. 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. 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Water Rates - Actual vs CPI Inflation Actual Rate Indexed Rate Village of Buffalo Grove 285 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 286 2013 Adopted Budget Appendix C Human Resources Health Plan Benefits Employee Staffing Levels Village of Buffalo Grove 287 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 288 2013 Adopted Budget Health Plan Benefits The Village offers three health insurance coverage options (2 PPOs and 1 HMO) on a self insured, pooled basis using the BlueCross BlueShield network. The Village also offers Basic Life /AD&D through Reliance Standard and Dental insurance coverage on a self-funded, pooled basis through MetLife. On January 1, 2012, the Village entered the Intergovernmental Personnel Benefits Cooperative (IPBC) for the period of January 1, 2012 – July 1, 2014. Established in 1978, the IPBC is a benefits pool, created under Illinois Law and regulated by the Illinois Department of insurance. Comprised of approximately 63 municipalities and similar units of local government, the IPBC covers over 10,000 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. Multi-Year Approach to Employee Health Care Premium Contributions For a decade, the Village has 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%. The FY2012-FY2016 medical insurance premium contribution schedule that has been adopted for all eligible Village employees, including those in the bargaining unit, is as follows: o 2012 – 11% employee contribution to health insurance premium. o 2013 – 12% employee contribution to health insurance premium. o 2014 – 13% employee contribution to health insurance premium. o 2015 – 14% employee contribution to health insurance premium. o 2016 – 15% employee contribution to health insurance premium. Village of Buffalo Grove 289 2013 Adopted Budget 2012 versus 2013 Premium Structure ($) 2012 rates 2013 rates PPO-A Medical Plan 90% In-Network / 70% Out of network benefit Monthly Total Premium Monthly Total Premium Single employee 61.14 555.83 70.03 583.62 Single + 1 dependent 123.5 1122.77 141.47 1,178.91 Family + 2 dependents 218.27 1984.29 250.02 2,083.50 2012 rates 2013 rates PPO-B Medical Plan 100% In-Network / 0% Out of network benefit Monthly Total Premium Monthly Total Premium Single employee 64.36 585.01 73.71 614.26 Single + 1 dependent 129.99 1181.71 148.90 1,240.80 Family + 2 dependents 229.73 2088.47 263.15 2,192.89 2012 rates 2013 rates HMO Medical Plan Monthly Total Premium Monthly Total Premium Single employee 56.23 511.16 63.79 531.61 Single + 1 dependent 113.58 1032.54 128.86 1,073.84 Family +2 dependents 200.73 1824.83 227.74 1,897.82 DENTAL 2012 rates 2013 rates No employee contribution Monthly Total Premium Monthly Total Premium Single employee 43.64 44.51 Single + 1 dependent 73.47 74.94 Family + 2 dependents 123.21 125.67 Employee Staffing Level Seasonal employees are included with part-time employee count. Village of Buffalo Grove 290 2013 Adopted Budget Office of the Village Manager/ Administration FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Administrative Intern 0 0 0 0 0 0 Assistant to the Village Manager 0 1 1 0 1 0 Associate Planner 0 1 0 1 0 1 Deputy Village Manager 1 0 1 0 1 0 Director of Human Resources 1 0 1 0 0 0 Emergency Response Coordinator 0 1 0 1 0 1 Village Manager 1 0 1 0 1 0 Village Planner 1 0 1 0 1 0 Secretary 1 1 1 1 1 0 Total 5 4 6 3 5 2 Full & Part-Time Total 9 9 7 Note: Human Resources Director and PT Secretary positions reflected in separate Human Resources table effective January 1, 2013. Building & Zoning FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Building Inspector 1 0 1 0 1 0 Deputy Building Commissioner 2 0 2 0 2 0 Electrical Inspector 1 0 1 0 1 0 Health Inspector 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 Clerk II 0 2 0 2 0 2 Secretary 1 0 1 0 1 0 Total 9 2 9 2 9 2 Full & Part-Time Total 11 11 11 Village of Buffalo Grove 291 2013 Adopted Budget Finance & General Services FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Assistant Finance Director 1 0 1 0 1 0 Director of Finance/Treasurer 1 0 1 0 1 0 Payroll Clerk III 1 0 1 0 1 0 Purchasing Manager 0 0 0 0 1 0 Clerk III 2 0 4 0 3 0 Clerk II 2 2 1 1 1 1 Total 7 2 7 1 8 1 Full & Part-Time Total 9 8 9 Human Resources FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Director of Human Resources 0 0 0 0 1 0 Secretary 0 0 0 0 0 1 Total 0 0 0 0 1 1 Full & Part-Time Total 0 0 2 *Human Resources Director and PT Secretary positions reflected in separate Human Resources table effective January 1, 2013. Village of Buffalo Grove 292 2013 Adopted Budget Golf Operations FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Assistant Director of Golf Operations 1 0 1 0 1 0 Assistant Golf Professional 1 0 1 0 1 0 Assistant Golf Professional 0 2 0 2 0 2 Director of Golf Operations 1 0 1 0 1 0 Golf Course Attendant - Seasonal 0 15 0 15 0 15 Golf Course Cashier - Seasonal 0 9 0 9 0 9 Golf Course Maintenance Worker 0 1 0 1 0 1 Golf Course Maintenance Worker – Seasonal 0 14 0 14 0 14 Golf Course Maintenance Worker II 0 0 1 0 1 0 Golf Course Maintenance Worker III 1 0 1 0 1 0 Golf Course Starter/Ranger – Seasonal 0 11 0 11 0 11 Golf Course Superintendent 1 0 1 0 1 0 Golf Course Supervisor 1 0 0 0 0 0 Had Golf Professional 1 0 1 0 1 0 Horticulturist 1 0 1 0 1 0 Total 8 52 8 52 8 52 Full & Part-Time Total 60 60 60 Information Technology FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Director of Information Technology/EMA Coordinator 1 0 1 0 1 0 Information Technology Analyst 1 0 1 0 1 0 Information Technology Assistant 1 0 1 0 1 0 Programmer 0 1 0 1 0 1 Total 3 1 3 1 3 1 Full & Part-Time Total 4 4 4 *Independent contractor assigned to the IT Department is not reflected in this staffing table. Village of Buffalo Grove 293 2013 Adopted Budget Fire Services FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Battalion Chief 5 0 5 0 5 0 Deputy Fire Chief 2 0 2 0 1 0 Deputy Fire Marshall 1 0 1 0 1 0 Fire Chief 1 0 1 0 1 0 Fire Inspector* 1 0 1 0 1 0 Fire Inspector/Public Education Officer 1 0 0 1 0 1 Fire Lieutenant 9 0 9 0 9 0 Firefighter/Paramedic 45 0 45 0 42 0 Secretary 1 0 1 0 1 0 Clerk III 1 0 0 0 0 0 Total 67 0 65 1 61 1 Full & Part-Time Total 67 66 62 *Additionally, two full time Building Inspectors serve as part-time fire inspectors. Police Services FY 2011 FY 2012 FY 2013 FT PT FT PT FT PT Chief of Police 1 0 1 0 1 0 Clerk III 4 0 3 0 3 0 Clerk II 0 2 0 1 0 1 Community Service Officer 3 0 3 0 3 0 Court Supervisor 0 1 0 1 0 1 Crime Prevention/Community Relations 0 1 0 1 0 0 Crossing Guard 0 9 0 9 0 9 Deputy Police Chief 2 0 1 0 1 0 Desk Officer I 0 2 0 2 0 2 Desk Officer II 4 0 3 0 3 0 Evidence Custodian 0 1 0 1 0 1 Patrol Officer 54 0 53 0 51 0 Police Commander 3 0 3 0 3 0 Police Sergeant 11 0 10 0 10 0 Police Social Worker 0 0 0 0 0 0 Records Supervisor 1 0 1 0 1 0 Research and Planning Specialist 0 0 0 0 0 0 Secretary 1 1 1 0 1 0 Technical Services Specialist 0 2 0 2 0 0 Total 84 19 79 17 77 14 Full & Part-Time Total 103 96 91 Village of Buffalo Grove 294 2013 Adopted Budget Public Works/Engineering FY 2011 FY 2012 FY 2013 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 1 0 Building Maintenance Worker 2 0 2 2 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 1 1 1 2 0 Clerk II 1 1 1 1 1 1 Clerk I 0 1 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 1 1 1 1 0 Fleet Manager 1 0 1 0 1 0 Forestry and Grounds Supervisor 1 0 1 0 1 0 Facility Coordinator 1 0 1 0 1 0 Laborer – Seasonal 0 9 0 9 0 9 Maintenance Worker I 9 0 10 0 10 0 Maintenance Worker II 8 0 8 0 8 0 Maintenance Worker II – CL 8 0 8 0 8 0 Maintenance Worker III 1 0 1 0 1 0 Metra Station Attendant 0 1 0 1 0 1 Operations Mgr – Streets, Drainage, Sanitary Sewer 1 0 1 0 1 0 Secretary 3 0 3 0 3 0 Superintendent of Water Operations 1 0 1 0 1 0 Technical Services Manager 1 0 1 0 0 0 Village Engineer 1 0 1 0 1 0 Water Customer Service Worker I 1 0 0 0 1 0 Total 51 16 51 15 52 13 Full & Part-Time Total 67 66 65 Village of Buffalo Grove 295 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 296 2013 Adopted Budget Appendix D Document Definitions Glossary Acronyms Village of Buffalo Grove 297 2013 Adopted Budget This page intentionally left blank. Village of Buffalo Grove 298 2013 Adopted Budget 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 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. Village of Buffalo Grove 299 2013 Adopted Budget 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 Administrator. 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, 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 assets 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 run by 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 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. Village of Buffalo Grove 300 2013 Adopted Budget 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 activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. Fund Balance: The fund equity of governmental funds. Changes in fund balances are the result of the difference of revenues to expenditures. Fund balances increase when revenues exceed expenditures and decrease when expenditures exceed revenues. Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide 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. 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 accounting segregation of financial resources. Expendable assets are assigned to a particular governmental fund type according to the purposes for which they may or must be used. Current liabilities are assigned to the fund type from which they are to be paid. The difference between the assets and the liabilities of governmental fund types is referred to as fund balance. The measurement focus in this fund types 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 Village of Buffalo Grove 301 2013 Adopted Budget 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 area around Chicago which joined together 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. 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. Modified Accrual Basis: The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues and other financial resource increments (e.g., bond issue proceeds) are recognized when they become susceptible to accrual that is when they become both "measurable" and "available" to financial expenditures of the current period: "Available means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized when the fund liability is incurred except for (1) inventories of materials and supplies that may be considered expenditure 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 in over operating expenses, non-operating expenses, and operating transfers out. Property Tax: Property taxes are 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 Village of Buffalo Grove 302 2013 Adopted Budget 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. Tax Increment District: A legal entity created by local resolution to promote improvements, jobs, etc. The taxes generated from the assessed value "increment" above the base year is used to finance the costs of the improvements which generate the increased assessed valuation. Tax 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. 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. Village of Buffalo Grove 303 2013 Adopted Budget 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 HVAC: Heating, Ventilation Air Conditioning IMF: Infrastructure Maintenance Fee IMRF: Illinois Municipal Retirement Fund IRMA: Intergovernmental Risk Management Agency MCSC3: Mobile Comm Support Center 3 MDC: Mobile Data Computer MFT: Motor Fuel Tax 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 Village of Buffalo Grove 304 2013 Adopted Budget Village of Buffalo Grove 50 Raupp Boulevard Buffalo Grove, Illinois 60089 www.vbg.org 847-459-2500 Village of Buffalo Grove 305 2013 Adopted Budget