VILLAGE OF BUFFALO GROVE, ILLINOIS

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

The overall increase in the General Fund revenue was 12.0 percent, while expenditures increased 6.3 percent ($2.8 million) in 2022.

Village of Buffalo Grove 2022 General Fund Expenditures

The surplus of revenues over expenditures (before other financing sources/uses) was $14.2 million. Adding in the Other Financing Sources (Uses), the net change to fund balance resulted in an increase of $9.5 million. Public Safety Expenditures increased $0.8 million, 2.7 percent, in FY 2022. Public Works increased 7.9 percent ($0.5 million) and General Government spent $1.3 million more in 2022 versus 2021.

Special Revenue Funds have a combined fund balance of $4.4 million as of December 31, 2022. In 2022 the Village continued its initiative to improve local roadways by resurfacing streets, repairing bridges, and maintaining street, curb and gutter as needed. These projects were funded by state and local motor fuel tax revenue, bond proceeds, transfers from the General Fund and grant revenues in 2022. Revenues received from the state share of the motor fuel tax were $2.6 million and local share of motor fuel tax of $0.67 million. The scope of each year’s identified maintenance, as determined through pavement analysis studies, typically surpasses the revenues received. The Capital Projects Street Fund expended $5.1 million using the various revenue sources. Some street projects tied to grant funding were completed in 2022, the remainder will be expended in FY 2023.

The Debt Service Fund has a fund balance of $32,249 at the end of FY 2022, which is a decrease of $8,200,531 as the remaining funds from the 2020 bond proceeds were spent and the money transferred out to the applicable funds. The Village debt totals $67.0 million, which includes general obligation bonds and a TIF revenue note. A total of $2.6 million in principal was retired in the current year. The interest paid associated with the debt retired was $1.2 million. Debt per capita is $1,366.74 as of December 31, 2022.

Proprietary Funds

The Village of Buffalo Grove’s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail.

The Village reports that both the Water and Sewer Fund and the Arboretum Golf Course as major proprietary funds. The Water and Sewer Fund accounts for all operating expenses of the municipal water system. Water is purchased wholesale from the City of Evanston through the Northwest Water Commission of which the Village is one of four members. Sanitary sewer service is provided by the Lake County Public Works Department for those property owners in Lake County. The Village acts as a billing partner to reduce administrative costs. The Metropolitan Water Reclamation District of Greater Chicago handles all the sanitary sewer treatment for Cook County residents and recovers its expenses through a property tax levy.