VILLAGE OF BUFFALO

GROVE, ILLINOIS

Management’s Discussion and Analysis (Unaudited) December 31, 2022

The Statement of Activities shows that $6.0 million in revenue was generated to finance the services rendered by the user fees. Another $6.8 million in revenue was generated by operating and capital grants and other contributions that was expended for capital improvements.

Business-Type Activities:

Business-type activities net position increased by $12.1 million. Significant changes are noted below.

Revenue:

Water sales decreased $200 thousand from the previous year. The total amount pumped was 1.29 billion gallons in 2021 versus 1.31 billion in 2022. The utility increased revenue with a 4.0 percent water rate increase. There was a slight decrease in water consumed of 0.61 billion gallons (5.09 percent) which equates to a decrease in water sales. The two golf courses generated $2.4 million in 2022, $0.2 million (7.7 percent) less than 2021 earnings. The following graph shows a comparison of revenues and expenses for each business type activity (excludes nonoperating activity, transfers and GAAP adjustments).

Village of Buffalo Grove 2022 Business Type Activities Revenues and Expenses (In Millions)

Expenses from all business-type activities decreased by $0.3 million or 2.1 percent. The Water Fund expenses stayed consistent compared to prior year, which compares favorably to a budgeted increase in expenses. Golf expenses were decreased in 2022 to $0.2 million in total or 7.7 percent.

Financial Analysis of the Village’s Funds

As noted earlier, the Village utilizes fund accounting to ensure and demonstrate compliance with finance related legal requirements.

Governmental Funds

The focus of the Village’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources.