Statement of Net Position – Governmental Activities

VILLAGE OF BUFFALO GROVE, ILLINOIS

Management’s Discussion and Analysis (Unaudited) December 31, 2020

General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2020 (in thousands)

Revenues and Transfers: Taxes Fines and Fees Licenses and permits Other Revenues Transfers in

Total Revenues and Transfers Final Budget Actual

$ 36,217 40,221 2,570 3,084 240 301 2,005 2,885 2,008 2,008 43,040 48,499

Expenditures and Transfers Expenditures Transfers Out

Total expenditures and Transfers 44,727 42,670 3,340 3,209 48,067 45,879

Change in fund balance (5,027) 2,620

Revenue (taxes) performed better than expected due to stronger than anticipated sales and income tax revenue. Actual expenditures performed better than budget due to the reduction in spending efforts as a result of the Covid-19 environment.

Capital Assets

At the end of December 31, 2020, the Village had a combined total capital assets of $116.1 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 $10.1 million.

VILLAGE OF BUFFALO GROVE, ILLINOIS

Management’s Discussion and Analysis (Unaudited) December 31, 2020

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

Governmental Business-Type Activities Activities

Total 2020 2019 2020 2019 2020 2019

Land Construction in Progress Buildings Equipment and Vehicles Land Improvements Streets and Storm Sewers Water and Sewer Infrastructure $ 39.5 38.1 6.2 6.2 45.7 44.3 2.3 1.6 1.0 - 3.3 1.6 4.4 3.5 0.7 1.0 5.1 4.5 7.6 5.4 - 0.2 7.6 5.6 2.6 2.6 - - 2.6 2.6 15.1 11.4 - - 15.1 11.4 - - 36.7 36.0 36.7 36.0

71.5 62.6 44.6 43.4 116.1 106.0

The Governmental Activities net capital assets increased from last year by $8.9 million (14.2 percent). For the Businesstype activities, the net capital assets increased by $1.2 million or (2.8 percent).

The capital activity for the Village of Buffalo Grove is mostly in streets, water and sewers 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 $40.5 million as shown in the next table:

Village of Buffalo Grove Long-Term Debt (in millions) Governmental Business-Type Activities Activities

Total 2020 2019 2020 2019 2020 2019

General Obligation Bonds IEPA Loans Installment Contracts Payable $ 34.6 11.9 - - 34.6 11.9 - - 0.3 0.3 0.3 0.3 - - 5.6 6.0 5.6 6.0

34.6 11.9 5.9 6.3 40.5 18.2