VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited) December 31, 2020 The Village’s governmental funds for the year ended December 31, 2020 reflect a combined fund balance of $50.7 million on its balance sheet. This represents a $21.1 million dollar increase over the balance posted last year. While most revenue streams for the Village decreased from 2019, the Village issued $24 million in General Obligation Bonds in 2020 and experienced an overall increase in revenues of $1.9 million. New revenue streams due to Illinois Rebuild funds of $.9 million, $.5 million in Motor Fuel Tax Transportation Renewal Distribution funds, and $.4 million in Local Motor Fuel Tax funds were received in 2020. While the Village curbed expenditures due to Covid-19, the overall increase over prior year of $8.3 million is due to inflationary costs along with an increase in capital project expenditure activity of $5.9 million. Of the total fund balance of $50.7 million, $20.2 million is unassigned indicating availability for future obligations. The 2020 unassigned fund balance increased by $1.2 million. Nonspendable fund balance ($0.57 million) represents amounts set aside for inventory and deposits. Restricted fund balance ($20.6 million) relates to the remaining proceeds available on the 2020 General Obligation Bond, federal and state seizure funds, and non-major special revenue fund balances including the Motor Fuel Tax and Local Motor Fuel Tax funds. Committed fund balance ($9.3 million) is to be used for future capital replacement. The General Fund is the Village’s main operating fund and accounts for core municipal services including, public safety (police and fire), public works, community development, and general administration. As such, it useful to review the liquidity of the fund by comparing the unassigned fund balance against the operating General Fund operating budget. As of December 31, 2020, the unassigned fund balance represents 47.2 percent of the FY 2020 operating budget. The Fund Balance of the General Fund increased by $2.6 million for the fiscal year ended December 31, 2020.
General Fund revenues decreased by $0.2 million in 2020. Fines and Fees increased slightly reporting $3.1 million, while Miscellaneous Income is down $1.6 million (59.3 percent) from 2019. State Sales tax (net of rebates) reported for 2020 was down 2 percent ($0.1 million). Income tax increased $0.1 million (2.6 percent) and use tax increased $0.45 million (32.3 percent). Real estate transfer taxes decreased by $35,000 (-3.5 percent). Other State of Illinois shared revenues decreased $18,000 (-6.24%). It should be noted that these revenues tend to be threatened to be reduced annually by the state legislature. The Village of Buffalo Grove is focused on developing self-sustaining revenue sources.
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