Tax Increment Financing

A TIF is a commonly used tool, which helps municipalities make needed improvements (such as roads and sewers) or helps attract private development. TIF generates a pool of revenue used for reinvestment within the district.Property owners within the district continue to pay theirnormalpropertytaxes.

When a TIF district is created, the property values of the parcels within the district are set at a base equalized assessed value (EAV). Taxing bodies (Village, county, township, school districts, etc) continue to collect property taxes based uponthe baseEAV.AnyincreaseintheEAVgeneratestheTIFincrement,whichis then available for projects within the TIF district. At the end of the TIF district's 23-year life, all real estate tax revenues are again shared proportionately by the taxingbodiesbasedontheirindividualtaxrates.

Town Center

Lake -Cook Road TIF District

The Village Board has authorized the establishment of a TIF district which includes the Town Center project and encompasses most Lake Cook Road properties.PreliminaryprojectionsshowthatthetaxableEAV,whichiscurrently $18 million, will grow to over $80 million. The preliminary TIF budget is projectedat$100million.

to redevelop the 20-acre Town Center property at a Public Hearing on April 6th. The proposed development, The Clove, will be a modern central entertainment and residential district anchored by a national grocery store, retail shops, a park, restaurantsandluxurymulti-familyresidential.

WJ Golf

Plans for the Village-owned The Arboretum Club at 401HalfDayRoadhavebeenapprovedtoconvertthe existingbanquetspaceintoavirtualgolfcenter.

WJ Golf, an indoor golf business, is the tenant and will manage the virtual golf center, as well as the renovated full-service restaurant WJ Golf will offer indoor golf activities including private lessons, golf simulators, full-service dining, and entertainment, t, which will complement the Arboretum Clubʼs beautiful 18-hole outdoor golf course to create a uniqueandexcitingregionaldestination

BGis...

Safe

BG knows that the community expects to be safe in their homes, at work, and around town.

To achieve this commitment, the village takes the following actions:

Insuring the public's safety through emergency medical , fire, and police services

Inspecting the environmental and heath impacts of businesses

Developing standards for the permitting and zoning of the village's built environment

AffirmativeAction

RecruitingPlanhasbeen inplacesince1986and updatedevery3years.

Village Pensions Obligations

The Fire Pension Fund was 76%. The annual interest rate assumption is 7% with a the five-year average return is 10.03%asofDecember31,2020.

The Police Pension Fund was 69% funded. The annual interest rate assumptionis7%withafive-yearaverage returnof9.45%asofDecember31,2020

72% of benefit costs are related to pensioncosts.$7.9millionistheVillageʼs employer obligation for current and future annuitants and $8.8 million will be distributedtoretiredpensioners.

Expense Overview

BiasedBasedPolicing

Annualreviewrevealed the17thconsecutive yearwithoutany complaintsofbiased basedprofiling.

The cost of all governmental activities this year was $42.2 million, a decrease of 11.5 percent from 2019 ($47.7 million). The largest decrease was made in Public Safety expenses $4.1 million in 2020. Public Works expensesdecreasedby$2.5million(24.5percent).

BuffaloGrove2020ExpendituresbyFunction

Officerscompletean8 hourMentalHealthFirst Aidanda40hourCrisis Interventiontraining.

Water sales increased $3.9 million from the previous year. The total amount pumped was 1.24 billion gallons in 2019 versus 1.26 billion in 2020. The utility increased revenuewitha11.0percentwaterrateincrease.Therewas a slight increase in water consumed .05 billion gallons (4.3 percent).The two golf courses generated $2.5 million in 2020,$0.5million(25percent)betterthan2019earnings.