FY 2025 PAFR

2025 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

2025 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, 2025.

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 2025 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

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

standards.

stakeholders.

The

2025

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 the information and

expectations

data provided in this guide to local financial activities

anticipated revenues and progress toward long-term operational and capital

in 2025 gives you a snapshot of the challenges and

development goals.

and

staffing

levels

based

upon

the

demand

for

services,

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

Denice Bocek

Sincerely,

The

Village

Clerk's

office

maintains

all

of

the

Village’s official records, meeting minutes and documents including

Eric N. Smith, Village President

Kevin Richards

as

well

business

as

and

a

range

liquor

of

services

licensing,

registration and municipal code updates.

voter

Janet Sirabian

A Closer Look at BG The

Village’s

net

position

increased

BG Quick Facts by

$23.4

million

(or

16.3

2025 PAFR - PAGE 3

percent)

during the fiscal year ended December 31, 2025. The governmental net position increased by $20.0 million (33.0 percent) and the business-type activities net position increased by $3.5 million (4.1 percent).

Equalized assessed valuation increased by $114.6 million or 6.0 percent to

$2.03 billion for the 2024 levy year (collected in 2025).

Net position (in millions)

87%

38%

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

$129,395

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

42

11,167

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.

strategic use

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

of information

74.9%

technology resources

17% 8.1%

2025 Top Employers and Tax Payers

Local Economy

BG has a distinctive local economy with an employment

manage operating and capital resources.

2025 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 $18,070,495 which is an increase from BG has over 10 million square feet of commercial, office,

the previous year’s total of $17,696,110, an increase of 2.1 percent.

and industrial space. BG is home to several advanced

manufacturing centers as well as many high-profile firms

Water and Sewer collections increased from $16,714,336 in 2024 to

such as Siemens, Plexus and Yaskawa.

$17,231,813 in 2025, a total increase of 3.1 percent.

and maintain the highest quality

Sales taxes, both state shared and home rule, generated $22,768,216 in

infrastructure.

2025 versus $18,050,925 in 2024, an increase of 26.13 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, 2025 were $77.1 million, an increase of $7.4 million or 10.6 percent. Property taxes continue to be the Village’s largest source Maintaining the

of revenue (23.4 percent) at $18.1 million. Included within the property

village's streets,

tax revenues are the pension levies for the Police and Firefighter Pension

grounds, water,

Funds and IMRF/Social Security. The pension levies account for 44.5

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 $35.6

million or 46.2 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

#1 best place to live in Illinois and #15 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.

2025 Major Village Initiatives & Developments

2025 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

Progress at The Clove

A Vibrant Corridor

In 2025, the Village issued over 2,400

Progress continued at The Clove

Lazy Dog Restaurant and Wild Fork Grocer

commercial and residential permits.

redevelopment as planning began for the

opened for business at Lake Cook Road

These permits represent a total project

one-acre central park, while Dutch Bros

and Route 83. Both businesses have

valuation of $111.5 million in community

and Whole Foods announced plans to

enjoyed early success and are key

investment.

open at the site. The development also

additions to the Lake Cook Corridor.

welcomed its first residential tenants.

commitment, the village takes the following actions:

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

Elsewhere around BG in 2025...

services.

Buffalo Grove again earned a AAA

Bond Rating from S&P. Phase I of a major redevelopment of

Chase Plaza was approved.

The Village Board approved an amendment for a 41 unit townhome

Inspecting the environmental and health impacts of businesses.

development located within the Prairie View Station Area Plan.

New businesses Belle Tire and Extra

Modernizing Public Safety

Electrifying Developments

Ground was broken for the

Anchor tenant Tesla opened for business

reconstruction of Fire Station 25 on

at the Bison Crossing Development on

Dundee Road. The new, state-of-the-art

Dundee Road, while construction

facility replaces the old station which had

continued on over 200 new luxury

stood since 1975. The facility is

apartments at the site. Rivian Automotive

anticipated to open in fall of 2026.

also rolled into BG, opening a new sales and service center at 909 Asbury Drive.

Space Self Storage opened along the Lake Cook Corridor.

The Village launched a Events and

Programming Study to evaluate

Developing standards for the permitting and

community events and venues.

zoning of the

In 2025, 131 businesses opened,

village's

expanded or relocated in Buffalo Grove.

built

environment.

BG Police Quick Facts

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

2025 PAFR - PAGE 6

Village Pension Obligations The Fire Pension Fund had a funded ratio of 83.5%

return is 8.36 as of December 31, 2025

Adequate Reserves

assumption is 7% with a the five-year average

The Police Pension Fund had a funded ratio of

The Village had $20,394,591

79.8% as of December 31, 2025. The annual

in unassigned fund balance

interest rate assumption is 7% with a five-year

available in the General Fund

average return of 9.07% as of December 31, 2025.

on December 31, 2025.

73% of total retirement expenses are related to pension costs. In 2025, the Village contributed $5.7 million in employer obligations for current and future annuitants and $12.1 million was distributed to retired pensioners.

Financial Stability ⏤the ⏤bond rating

Expense Overview

The Village holds a AAA

The cost of all governmental activities this year was $60.2

current bonded general

million, an increase of 7.8 percent from 2024 ($4.3 million).

obligation debt.

highest possible

from Standard & Poor's on all

The largest increase was made in General Government

Policing Annual

expenses of $4.6 million in 2025. Public Works expenses

review revealed the

increased by $1.4 million (4.1 percent) while Public Safety

23rd consecutive

2025

as of December 31, 2025. The annual interest rate

every 3 years.

Biased Based

Finance and Liabilities

expenses decreased by $1.4 million (4.1 percent)

Public Safety Pension Funding

year without any complaints of biased based profiling.

The Fire Pension Fund is funded at 83.5%, and the Police Pension Fund is funded at 79.8%.

State statute mandates

that pensions be funded at 100% by 2040.

Officers complete an 8-hour mental health first aid and a 40-hour crisis

Expenses from all business-type activities increased by $0.5

intervention training.

million or 3.2 percent. The Water Fund expenses increased by $0.3 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.

2025 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 2025 IMP Project Impacts and Results

Project

Street Miles

Water Miles

Total Cost

Street Resurfacing

2.81

0.00

$3,179,511

Mill Creek Subdivision Phase I Utility & Street Improvements

0.60

0.73

$2,276,091

Northwoods Neighborhood Stormwater Improvements

1.36

0.10

8,918,727

Bernard Drive West

0.95

0.96

186,580

TOTAL

5.72

1.80

$19,087,169

Connect with the Village and stay informed

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