VILLAGE OF BUFFALO GROVE, ILLINOIS

Management’s Discussion and Analysis (Unaudited)

December 31, 2022

General Fund Budgetary Highlights

The budget is formally presented to the Village Board in November and approved in December in conjunction with the tax levy request. As the Village operates under the Budget Officer Act, a public hearing, for public comment is conducted, before the budget is adopted. The budget document sets the legal spending ceiling for each fund and serves as the day-to-day management tool to ensure fiscal accountability.

General Fund Budgetary Highlights

For the Fiscal Year Ended December 31, 2022

Final BudgetActual

*Values may differ from financials due to rounding.

Revenue (taxes) performed better than expected due to stronger than anticipated sales, income tax, and real estate transfer taxes. Actual expenditures slightly performed better than budget due to the reduction in transfers out to other funds.

Capital Assets

At the end of December 31, 2022, the Village had a combined total capital assets of $153.9 million invested in a broad range of capital assets including, buildings, streets, storm sewers, and equipment. This amount represents a net increase (including additions and deductions) of $26.1 million.

VILLAGE OF BUFFALO GROVE, ILLINOIS

Management’s Discussion and Analysis (Unaudited)

December 31, 2022

Village of Buffalo Grove Capital Assets at Year End (in millions)*

*Values may differ from financials due to rounding.

The Governmental Activities net capital assets increased from last year by $17.7 million (22.7 percent). For the Business-type activities, the net capital assets increased by $8.4 million or (16.9 percent).

The capital activity for the Village of Buffalo Grove is mostly in streets, water and sewer, and vehicles, including the construction in progress in these areas. The amounts added to the asset classes was offset by accumulated depreciation and not shown in the table above.

Detailed information on the Village’s capital assets is included in Note 3.

Long-Term Debt

At year end, the Village had total debt outstanding of $71.9 million as shown in the next table:

Village of Buffalo Grove Long-Term Debt (in millions)*

*Values may differ from financials due to rounding.

The Village maintains assigned “AAA” ratings on its general obligation bonds from Standard and Poor’s Corporation. Moody’s Investor Services rates the Village of Buffalo Grove as “AA1”.