2024 Popular Annual Financial Report

2024 Popular Annual Financial Report

Village of Buffalo Grove, Illinois

Table of Contents 2

Message from the Village President Budget Overview

3

A Closer Look at Buffalo Grove

4

Top Employers and Taxpayers Local Economy Revenue Overview

5

Major Village Initiatives & Developments

6

Village Pension Obligations Expense Overview Finance and Liabilities

7

Infrastructure Modernization Program (IMP)

Village of Buffalo Grove 50 Raupp Boulevard Buffalo Grove, IL 60089 info@vbg.org

2024 PAFR - PAGE 2

Village Trustees

Lester Ottenheimer

Message from the Village President I am very pleased annual

BG is...

Eric N. Smith

to present Buffalo Grove's

Popular Annual Financial Report for the

Responsible

fiscal year ended December 31, 2024.

I'm proud of our ability to deliver the Buffalo Grove

David Weidenfeld

community with an overview of the Village’s progress and financial performance in a manner that is both transparent and easy to understand. This report

does

Safe

Budget Overview

not replace the Annual Comprehensive Financial

Buffalo Grove's 2024 budget is designed to provide residents and other

Report (ACFR),

interested parties with an easy-to-navigate format that clearly explains how

but rather provides a summary of

financial activities. The full disclosure financial

Joanne Johnson

Resilient

the Village allocates its resources. Each program strives to make BG more

statements, or ACFR, are available online at

responsible, resilient and/or safe. Every program consists of major services

www.vbg.org/financialreports.

the Village provides for its residents and the business community. Therefore, the budget document is organized by areas, programs and major services.

Analysis conducted within this report outlines growth

The gray boxes on the following pages provide an overview of each area.

drivers, capital projects and summarized financial and trend data. The presentation of financial information in

Each program provides oversight over the services that are provided either

the report has been derived from audited financial

directly to the community or indirectly as an internal support function. How

statements and conforms to generally accepted

resources are allocated within the annual budget provides the reader insight

accounting principles (GAAP) and related reporting

as to what the strategic priorities are and what services are valued by Village stakeholders.

standards.

The

2024

budget

supports

18

programs

that

deliver

47

services.

Frank Cesario

The Village continues to prioritize financial transparency and open communication with its

Each year, the Village determines its level of service, strategic goals and

residents and businesses. I hope

expectations

the information and

and

staffing

levels

based

upon

the

demand

for

services,

data provided in this guide to local financial activities

anticipated revenues and progress toward long-term operational and capital

in 2024 gives you a snapshot of the challenges and

development goals.

opportunities the Village of Buffalo Grove is managing today and into the future.

Denice Bocek

Sincerely,

The

Eric N. Smith

Village

Clerk's

office

maintains

all

documents including

as

well

business

as

and

a

range

liquor

of

the

services

licensing,

registration and municipal code updates.

Kevin Richards

of

Village’s official records, meeting minutes and

voter

Janet Sirabian

A Closer Look at BG The

Village’s

net

position

increased

BG Quick Facts by

$20.5

million

(or

16.6

2024 PAFR - PAGE 3

percent)

during the fiscal year ended December 31, 2024. The governmental net position increased by $16.8 million (38.1 percent) and the business-type activities net position increased by $3.4 million (4.4 percent).

Equalized assessed valuation increased by $90.7 million or 5.0 percent to

$1.91 billion for the 2023 levy year (collected in 2024).

Net position (in millions)

87%

35%

of residents have some level of post-secondary education

of residents were born outside of the United States

BG is...

Responsible BG is committed to

$127,553

43,212

Median household income in BG

Total population in BG

being prudent stewards of the public dollar.

To achieve this commitment the village takes the

97%

79%

of residents in the labor force are currently employed

of residents have access to 4+ acres per 1,000 residents

41.2

11,434

is the median age of a BG resident

Single-family homes in Buffalo Grove

following actions:

Innovating the

Did you know?

Where Your Property Tax Dollars Go

administrative, personnel, and legislative functions

Managing the Village's finances, pension funds and debt service

Open BG provides a hub of direct access to the Village’s financial,

Overseeing the

historical and contractual data.

Anyone can use this data to participate in and improve government. Check it out at vbg.org/openbg.

strategic use

74.6%

of information

17.0% 8.4%

technology resources

2024 Top Employers and Tax Payers

Local Economy

BG has a distinctive local economy with an employment

manage operating and capital resources.

2024 PAFR - PAGE 4

External economic factors at the national and state level continue to impact the Village’s revenue profile and, subsequently its ability to

base of 17,000 daily workers.

BG is...

Resilient

BG strives to provide

Property tax collections totaled $17,696,110 which is a decrease from BG has over 10 million square feet of commercial, office,

the previous year’s total of $18,050,357, a decrease of 2.0 percent.

and industrial space. BG is home to several advanced

manufacturing centers as well as many high-profile firms

Water and Sewer collections decreased from $18,195,154 in 2023 to

such as Siemens, Plexus and Yaskawa.

$16,714,336 in 2024, a total decrease of 8.14 percent.

and maintain the highest quality

Sales taxes, both state shared and home rule, generated $18,050,925 in

infrastructure.

2024 versus $18,599,362 in 2023, a decrease of 2.95 percent.

To achieve this commitment the village takes the

Revenue Overview

following actions:

Revenues for the Village’s governmental activities for the year ended December 31, 2023 were $69.7 million, an increase of $4.5 million or 6.8 percent. Property taxes continue to be the Village’s largest source of Maintaining the

revenue (25.4 percent) at $17.7 million. Included within the property tax

village's streets,

revenues are the pension levies for the Police and Firefighter Pension

grounds, water,

Funds and IMRF/Social Security. The pension levies account for 41.6

percent of the property tax levy. Other taxes and intergovernmental

drainage, and sewer

revenue including sales tax, state income tax, utility tax, prepared food

systems.

and beverage tax, hotel tax and real estate transfer tax total $31.2

million or 44.7 percent of total governmental activities revenue.

Improving the quality of municipal buildings, parking lots, and vehicles.

Did you know?

Did you know?

Buffalo Grove was recently ranked among the top cities

MoneyGeek.com

recently

evaluated

small

cities

and

in the country on U.S. News and World Report's lists of

towns across the United States - those with 30,000 to the Best Places to Live in America. Taking into account

100,000 - and happiness, ranked them according to the factorsresidents such as overall affordability,

Directing long term structural needs through engineering.

desirability and job market, Buffalo Grove ranked as the per capita cost of crime.

They ranked Buffalo Grove the

#2 best place to live in Illinois and #63 best place to live

#1 safest town in the U.S., with a $22 crime cost per in America, in addition to being ranked the #18 safest

capita.

place to live in America based on annual crime data.

2024 Major Village Initiatives & Developments

2024 PAFR - PAGE 5

BG is...

Safe BG knows that the community expects to be safe in their homes, at work, and around town.

To achieve this

Investing in BG

The Clove marks a milestone

A vibrant corridor

In 2024, the Village issued over 2,900

The Clove redevelopment made

Lazy Dog Restaurant and Wild Fork Grocer

commercial and residential permits.

significant progress. At the heart of the

broke ground at the corner of Lake Cook

These permits represent a total project

development, 'The 250' mixed-use building

Road and Route 83. Both businesses are

valuation of $84.4 million in community

welcomed its first residential tenants.

anticipated to open in the spring of 2025

investment.

Panda Express opened at the site, with

and are poised to become central focal

additional commercial tenants to come.

points of the Lake Cook Corridor.

commitment, the village takes the following actions:

Ensuring the public's safety through emergency medical , fire, and police

Elsewhere around BG in 2024...

services.

BG adopted its new community brand and tagline, Smart. With

heart.

Improvements began at the

Combined Area Fire Training Site (CAFT). Work includes a combined

Inspecting the environmental and health impacts of businesses.

water fill and truck weigh station and pavement resurfacing.

Plans were completed to retrofit the

Adaptive reuse completed

Electrifying developments

Construction was completed on the

The Bison Crossing development broke

173,000 square-foot Public Works facility

ground on Dundee Road. The long-vacant

at 1650 Leider Lane. This adaptive re-use

former Rohrman Auto dealerships were

of a former warehouse space came in at

demolished to make way for this 16-acre

one-third the cost of a ground-up new

mixed-use development anchored by a

construction to provide a home for Public

Tesla sales and service center.

Works well into the future.

former Public Works facility on Raupp Boulevard into temporary quarters for Fire Station 25 while the existing station on Dundee Road is

Developing standards for the permitting and

reconstructed.

zoning of the

In 2024, 82 businesses opened,

village's

expanded or relocated in Buffalo Grove.

built

environment.

BG Police quick facts

2024 PAFR - PAGE 6

Village Pension Obligations The Fire Pension Fund had a funded ratio of 81% as of December 31, 2024. The annual interest rate assumption is 7% with a the five-year average

return is 7.94% as of December 31, 2024.

The Police Pension Fund had a funded ratio of

78% as of December 31, 2024. The annual interest rate assumption is 7% with a five-year average

return of 7.72% as of December 31, 2024.

Affirmative Action Recruiting Plan has been in place since 1986 and updated

Finance and Liabilities 2024

Adequate Reserves The Village had $19,839,238 in unassigned fund balance available in the General Fund on December 31, 2024.

73% of total retirement expenses are related to pension costs. In 2024, the Village contributed

Debt Reduction

$5.7 million in employer obligations for current and future annuitants and $11.9 million was distributed to retired pensioners.

The Village retired a total of

every 3 years.

$2,611,365 in general obligation debt in fiscal year

Expense Overview The cost of all governmental activities this year was $55.9 million, an increase of 3.4 percent from 2023 ($1.8 million).

Biased Based Policing Annual review revealed the 22nd consecutive

The largest increase was made in Public Safety expenses of $5.0 million in 2024. General Government expenses decreased by $3.2 million (24.5 percent) and Public Works expenses remained stable at $8.1 million.

year without any

2024.

Financial Stability ⏤the ⏤bond rating

The Village holds a AAA highest possible

from Standard & Poor's on all current bonded general obligation debt.

complaints of biased based profiling.

Public Safety Pension Funding The Fire Pension Fund is funded at 81.2%, and the Police Pension Fund is funded at 78.0%.

Officers complete an

State statute mandates

that pensions be funded at

8-hour mental health

100% by 2040.

first aid and a 40-hour crisis

Expenses from all business-type activities decreased by $1.4

intervention training.

million or 8.2 percent. The Water Fund expenses decreased by $1.4 million, and compared favorably to the yearly budget.

Golf expenses remained consistent at $3.0 million in total.

The Village's financial policy requires a 25% fund balance for general operations.

Learn more at www.vbg.org/financialreports.

2024 PAFR - PAGE 7

Infrastructure Modernization Program (IMP)

About the Infrastructure Modernization Program

The Infrastructure Modernization Program (IMP) encompasses the largest initiative in the Village’s history to replace and rehabilitate core infrastructure assets.

Due to the development patterns of the Village since 1958, much of the water and sewer infrastructure as well as road deficiencies exist in the Cook County portions of the Village. However, given the desire to balance the needs of the entire village with this initiative, several projects are planned village-wide now through 2027.

In 2024, the Village launched Phase II of the IMP, taking a different approach focusing on effective opportunity management and grant funding. It also has a heavy emphasis on facility modernization, as evidenced by the Village's new Public Works facility, completed in 2024, and Fire Station 25, currently under construction.

Key 2024 IMP Project Impacts and Results

Project

Street Miles

Water Miles

Total Cost

Bernard Drive East

0.57

0.74

$3,495,645

White Pine

1.19

1.20

$3,749,531

TOTAL

9.82

4.29

$7,245,176

Learn more about key 2025 IMP Projects Bernard Drive utility and street improvements Mill Creek utility and street improvements Northwood stormwater improvements

Connect with the Village and stay informed