VILLAGE OF BUFFALO GROVE, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 50 Raupp Blvd Buffalo Grove, IL 60089 Phone: 847.459.2500 www.vbg.org
VILLAGE OF BUFFALO GROVE, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025
Prepared by: Finance Department Chris Black Finance Director/Village Treasurer
VILLAGE OF BUFFALO GROVE, ILLINOIS TABLE OF CONTENTS
PAGE INTRODUCTORY SECTION List of Principal Officials Village Organization Chart Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting
1 2 3 7
FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT
10
MANAGEMENT’S DISCUSSION AND ANALYSIS
14
BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Balance Sheet - Governmental Funds Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities Statement of Net Position - Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Notes to the Financial Statements
27 29 31 33 35 37 39 41 42 43 44 45
REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions - Last Ten Fiscal Years Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund
98 99 100 101 103 105
VILLAGE OF BUFFALO GROVE, ILLINOIS TABLE OF CONTENTS
PAGE FINANCIAL SECTION - Continued REQUIRED SUPPLEMENTARY INFORMATION - Continued Schedule of Investment Returns - Last Ten Fiscal Years Police Pension Fund Firefighters' Pension Fund Schedule of Changes in the Employer’s Net OPEB Liability Retiree Benefits Plan Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund Lake Cook Road TIF
107 108 109 111 112
OTHER SUPPLEMENTARY INFORMATION Schedule of Revenues - Budget and Actual - General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Debt Service Fund Facilities Development - Capital Projects Fund Street Maintenance - Capital Projects Fund Vehicle Equipment Replacement - Capital Projects Fund Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax - Special Revenue Fund Local Motor Fuel Tax - Special Revenue Fund Metra Parking Lot - Special Revenue Fund Dundee Road TIF - Special Revenue Fund Schedules of Revenues, Expenses and Changes in Net Position - Budget and Actual Water and Sewerage - Enterprise Fund Arboretum Golf - Enterprise Fund Combining Statement of Net Position – Nonmajor Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Funds Combining Statement of Cash Flows – Nonmajor Enterprise Funds Schedules of Revenues, Expenses and Changes in Net Position - Budget and Actual Buffalo Grove Golf - Enterprise Fund Refuse Service - Enterprise Fund Combining Statement of Net Position – Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
118 119 120 121 122 123 124 125 126 127 128 129 130 131 133 134 135 136 137 138
VILLAGE OF BUFFALO GROVE, ILLINOIS TABLE OF CONTENTS
PAGE FINANCIAL SECTION - Continued OTHER SUPPLEMENTARY INFORMATION - Continued Combining Statement of Cash Flows – Internal Service Funds Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Information Technology - Internal Service Fund Central Garage- Internal Service Fund Building Maintenance - Internal Service Fund Combining Statement of Fiduciary Net Pension - Pension Trust Funds Combining Statement of Changes in Fiduciary Net Pension - Pension Trust Funds Schedule of Changes in Fiduciary Net Pension - Budget and Actual Police Pension - Pension Trust Fund Fund Firefighters' Pension - Pension Trust Fund Fund
139 140 141 142 143 144 145 146
SUPPLEMENTAL SCHEDULES Long-Term Debt Requirements General Obligation Bonds of 2012 General Obligation Bonds of 2016 General Obligation Bonds of 2020 General Obligation Bonds of 2022 General Obligation Bonds of 2025 IEPA Loan Payable of 2013 - Pump Stations Improvements Installment Note Payable of 2015 Installment Note Payable of 2023
148 149 150 151 152 153 154 155
STATISTICAL SECTION (Unaudited) Net Position by Component - Last Ten Fiscal Years Changes in Net Position - Last Ten Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago Property Tax Levies and Collections - Last Ten Fiscal Years Taxable Sales by Category - Last Ten Calendar Years Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
158 160 162 164 166 168 170 171 172 174 176
VILLAGE OF BUFFALO GROVE, ILLINOIS TABLE OF CONTENTS
PAGE STATISTICAL SECTION (Unaudited) Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years Schedule of Direct and Overlapping Governmental Activities Debt Schedule of Legal Debt Margin Demographic and Economic Statistics - Last Ten Fiscal Years Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago Full-Time Equivalent Government Employees by Function/Program - Last Ten Fiscal Years Operating Indicators by Function/Program - Last Ten Fiscal Years Capital Asset Statistics by Function/Program - Last Ten Fiscal Years
178 179 180 181 182 184 186 188
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS
191
INTRODUCTORY SECTION This section includes miscellaneous data regarding the Village of Buffalo Grove, Illinois including: List of Principal Officials Organizational Chart Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting
VILLAGE OF BUFFALO GROVE, ILLINOIS List of Principal Officials December 31, 2025
Eric Smith Village President
Janet M. Sirabian Village Clerk
Board of Trustees Denice Bocek
Kevin Richards
Frank Cesario
Lester Ottenheimer
Joanne Johnson
David Weidenfield Appointed Officials Dane Bragg, Village Manager
Christopher Stilling Deputy Village Manager
Chris Black Finance Director/Village Treasurer
Brian Budds Chief of Police
Larry Kane Fire Chief
Michael Skibbe Deputy Village Manager/Public Works Director
Kathryn Golbach Director of Human Resources
Briget Schwab Village Engineer
Nicole Woods Director of Community Development
Molly Gillespie Director of Communications and Engagement
Geoff Tollefson Golf Course Manager
Tyler Grace Assistant Village Manager
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June 5, 2026 The Honorable Eric Smith Members of the Village Board Citizens of the Village of Buffalo Grove The Annual Comprehensive Financial Report of the Village of Buffalo Grove for the year ended December 31, 2025, is submitted herewith. This report represents a comprehensive picture of the Village’s financial activities during Fiscal Year 2025 and the financial condition of its various funds at December 31, 2025. State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audit in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Management assumes full responsibility for the completeness and reliability of all information presented in the report based upon a comprehensive internal control framework. Because the cost of internal controls should not outweigh their benefits, the Village’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. Lauterbach & Amen LLP, Independent Certified Public Accountants, have issued an unmodified (clean) opinion on the Village’s financial statements for the fiscal year ended December 31, 2025. The independent auditors’ report is presented at the front of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). The letter of transmittal is designated to complement the MD&A and should be read in conjunction with it. The Village of Buffalo Grove’s MD&A can be found immediately following the report of the independent auditors. Profile of the Village of Buffalo Grove The Village of Buffalo Grove was incorporated March 7, 1958, and is located approximately 29 miles northwest of the downtown of the City of Chicago. The Village resides in both Cook and Lake Counties and spans 9.2 square miles and based on the U.S. Census 2025 estimate, serves a population of 42,812. The Village of Buffalo Grove is empowered to levy a property tax on real property located within its boundaries. It is also empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The Village became a home rule unit by referendum on July 1, 1980, giving it additional powers to tax and regulate in ways not specifically granted, or prohibited, by the Illinois Constitution. As a home rule entity, the Village has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the issuance of debt or to increase property taxes. The Village operates under a Council/Manager form of government. Policy making and legislative authority are vested with the Village Board, which consists of a President and a six-member Board of Trustees. The Village Board is responsible for passing ordinances and resolutions, adopting the annual budget, appointing committees, and hiring the Village’s Manager and Attorney. The Village Manager is responsible for carrying out the policies, ordinances, and resolutions of the Village Board, developing and presenting an annual budget, overseeing the dayto-day operations of the Village, and appointing department directors. 3
The Village provides a full range of services including police and fire protection, construction and maintenance of streets and infrastructure, planning and zoning, water and sewer utilities, and general administrative services. The Village also operates two golf courses and a municipal commuter parking lot. To provide these services there were 217 full-time and 38 part-time/seasonal positions in the Fiscal Year 2025 annual budget. Budgetary Control and Accounting Systems The annual budget serves as the foundation for the Village’s financial planning and as a management spending control document. All departments of the Village of Buffalo Grove are required to submit budget requests by a specified date each year. These requests serve as the starting point for budget development. The proposed budget is presented to the Village Board in November and adopted by ordinance in December concurrently with the property tax levy. Legal spending thresholds are established through the annual budget under the budget officer method. The Village Board is required to hold a public hearing on the budget document and must adopt a final budget no later than December 31st of each year. The budget is prepared by fund, department, and program. Department directors may make transfers of budget allocations within a department. Transfers of budget allocations between funds, however, require the approval of the Village Board. All budget adjustments must be approved by the Village Board to amend the legal spending thresholds. The Village Manager is authorized to transfer budgeted amounts between departments within any fund. However, any modifications to the legally adopted appropriation ordinance may not exceed expenditure limits, at the fund level, mandated by the appropriation ordinance without approval by the Board. The accounts of the Village are organized on the basis of funds, each of which is considered a separate and distinct accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Revenues are allocated to and accounted for in individual funds based upon the purpose for which they are to be expended and the means by which spending activities are controlled. The accounting records for general governmental operations are maintained on the modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when the material or services are received, and the liability is incurred. Accounting records for the Village’s enterprise funds, internal service funds, agency funds and pension trust funds are maintained on the accrual basis of accounting. Factors Affecting Financial Condition Local Economy The Village is primarily residential, with supporting commercial activity and limited industrial and manufacturing activity. There are approximately 790 licensed businesses operating in the Village. The majority of residents are employed in management, professional, sales and office occupations. The Village’s unemployment statistics have consistently been lower than the national and state averages, with an unemployment rate at the end of the year at 3.8 percent besting the state by 1.0 percent. External economic factors at the national and state level continue to impact the Village’s revenue profile and, subsequently its ability to manage operating and capital resources.
• • •
Property tax collections totaled $18,070,495, which is an increase from the previous year’s total of $17,696,110, or 2.1 percent. Water and Sewer collections increased from $16,714,336 in 2024 to $17,231,813 in 2025; a total increase of 3.1 percent. Sales taxes, both state shared and home rule, generated $22,768,216 in 2025, an increase of 26.13 percent.
The Village equalized assessed valuation increased by $100.8 million or 5.23 percent to $2.026 billion for the 2024 levy year, the most recent data available. The Lake County portion of the Village’s equalized assessed value increased by 6.59 percent and Cook County portion increased by 0.31 percent. 4
The unassigned fund balance of the General Fund will again exceed the 30 percent threshold of the subsequent year’s budgeted expenditures, less non-operating transfers, which is the preferred level in the policy established by the Village Board. Unassigned Fund Balance
Fiscal Year Ended December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025
$
16,143,726 18,902,476 17,039,974 18,939,974 20,134,162 22,485,209 17,701,070 18,522,000 19,839,238 20,394,591
$
Budgeted Expenditures
Percent
39,177,439 39,477,439 39,717,331 43,948,348 44,657,330 44,610,467 46,945,915 49,103,697 53,054,966 54,627,407
41.21% 47.88% 42.90% 43.10% 45.09% 50.40% 37.71% 37.72% 37.39% 37.33%
Long-Term Financial Planning The Village compiles a General Fund Five-Year Financial Forecast annually which provides an analysis of future revenue and expenditures. This report is completed in tandem with the start of the annual budget process. Other long-range financial plans include the Five-year Capital Improvement Plan and Twenty-Year Water and Sewer Fund Pro-Forma. The Village assesses its capital needs through the Capital Improvement Plan (CIP) update. This document is a planning tool to identify short- and medium-term capital needs (facilities, infrastructure, and roadways) and measure those demands against the Village’s ability to pay. For a project to be incorporated into the CIP, it must involve the creation, improvement, or acquisition of a tangible asset with an original cost of at least $25,000. The Village is in the second year of Phase 2 of its Infrastructure Modernization Program. This phase includes another approximately $115 million in projects planned to address growing stormwater needs and to replace aging facilities. Funding strategies for each project seek to maximize grant opportunities, keep the Village’s tax levy flat and limit water and sewer fee increases. The Twenty-Year Water and Sewer Fund Pro-Forma provides an overview of the Water and Sewer Fund and adequacy of the current water rate to fund operating expenses and infrastructure improvements as well as generating a reserve to continue with a pay-as-you-go approach to capital budgeting. The Reserve for Capital Replacement Funding Report lists all Village owned vehicles, the service life, and its respective reserve balance. Major Initiatives In 2025, the Village of Buffalo Grove issued over 2,400 commercial and residential building permits. These permits represent a total project valuation of $111.5 million invested in the Buffalo Grove community. In addition to building permit activity, the following major projects occurred in 2025: The Town Center Redevelopment project, The Clove, continued to make significant progress throughout the year. At the heart of the development is ‘The 250’, a seven-story mixed-use development featuring one-, two- and three-bedroom luxury residential units, 160,000 square feet of commercial retail space on the ground floor, including the future home of a sit-down restaurant. The first three floors of residential units were complete and are over 70% leased. Kensington Development Partners, the developer for this project, purchased the vacant Boston Market and Burger King out lot properties adjacent to the rest of the Clove Development. Site work began for 5
Dutch Brothers Coffee to move into the former Burger King location. The Village partnered with WRT Planning and Design to help design the one-acre central park, Clove Park, a central gathering place for the community. Across Route 83 from the Clove, both Lazy Dog Restaurant and Wild Fork opened their doors in the Spring. The Extra Space Self-Storage, a 4 story, 112,268 square foot, climate controlled, self-storage facility and Belle Tire, a 9,800 square foot facility, both located on adjacent parcels to the Ricket Rockets on Lake Cook Road both opened during the year. Groundbreaking for the Fire Station #25 rebuild project was held in July and substantial progress was made on this project throughout the year. The new Tesla sales, service and delivery center, the anchor to the Bison Crossing development, opened in Spring and major work on the luxury apartment buildings was completed during the year. Rivian Automotive opened an electric vehicle service center at 909 Ashbury Drive, that serves primarily as an automobile service center and a Rivan sale and test-drive location. The Village Board approved an amendment for Projades, LLC to develop a 41-unit for sale townhome community on an approximately 4.25-acre site, located with the Village’s Prairie View Station Area Plan. In 2025, 131 businesses opened, expanded and/or relocated in the Village of Buffalo Grove. Awards and Acknowledgments The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Buffalo Grove for its Annual Comprehensive Financial Report for the fiscal year ended December 31, 2024. This was the forty-third consecutive year that the government has received this prestigious award. To be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized Annual Comprehensive Financial Report. This report satisfies both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the Village also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning January 1, 2025. In order to qualify for the Distinguished Budget Presentation Award, the Village’s budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device. Preparation of this report would not have been possible without the dedicated services of the entire staff of the Finance Department. Credit also must be given to the Village President and Board of Trustees, and the Village Manager Dane Bragg for their assistance in planning and conducting the fiscal affairs of the Village in a responsible manner.
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FINANCIAL SECTION This section includes: Independent Auditor's Report Management’s Discussion and Analysis Basic Financial Statements Required Supplementary Information Other Supplementary Information Supplemental Schedules
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INDEPENDENT AUDITOR'S REPORT This section includes the opinion of the Village’s independent auditing firm.
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INDEPENDENT AUDITOR'S REPORT June 5, 2026 The Honorable Village President Members of the Board of Trustees Village of Buffalo Grove, Illinois Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo Grove (the Village), Illinois, as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo Grove Illinois, as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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Village of Buffalo Grove Illinois June 5, 2026 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and supplementary pension and other postemployment benefit (OPEB) schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Village of Buffalo Grove, Illinois June 5, 2026 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Buffalo Grove, Illinois’ basic financial statements. The other supplementary information and supplemental schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, other supplementary information and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 5, 2026, on our consideration of the Village’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control over financial reporting and compliance.
LAUTERBACH & AMEN, LLP
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MANAGEMENT'S DISCUSSION AND ANALYSIS
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VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
Our discussion and analysis of the Village of Buffalo Grove (the Village), Illinois’ financial performance provides an overview of the Village’s financial activities for the fiscal year ended December 31, 2025. Please read it in conjunction with the transmittal letter, which can be found in the introductory section of this report and the Village’s financial statements, which can be found in the basic financial statements section of this report. FINANCIAL HIGHLIGHTS •
The Village’s net position increased as a result of this year’s operations. Net position of the governmental activities increased by $20,037,863, or 33.0 percent and net position of business-type activities increased by $3,452,754, or 4.1 percent.
•
During the year, government-wide revenues for the primary government totaled $99,944,987, while expenses totaled $76,454,370, resulting in an increase to net position of $23,490,617.
•
The Village’s net position totaled $167,520,870 on December 31, 2025, which includes $145,391,420 net investment in capital assets, $9,628,773 subject to external restrictions, and $12,500,677 unrestricted net position that may be used to meet the ongoing obligations to citizens and creditors.
•
The General Fund reported an increase this year of $7,673,540 or 14.6 percent, resulting in an ending balance of $60,137,989.
USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the Village as a whole and present a longer-term view of the Village’s finances. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the Village’s operations in more detail than the government-wide statements by providing information about the Village’s most significant funds. The remaining statements provide financial information about activities for which the Village acts solely as a trustee or agent for the benefit of those outside of the government. Government-Wide Financial Statements The government-wide financial statements provide readers with a broad overview of the Village’s finances, in a matter similar to a private-sector business. The Statement of Net Position reports information on all of the Village’s assets/deferred outflows and liabilities/ deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. Consideration of other nonfinancial factors, such as changes in the Village’s property tax base and the condition of the Village’s infrastructure, is needed to assess the overall health of the Village. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
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VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
USING THIS ANNUAL REPORT - Continued Government-Wide Financial Statements - Continued Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include general government, public safety (police and fire), public works, streets and sidewalks, and community development. Property taxes, state and home rule sales tax, shared state income tax, real estate transfer tax, prepared food and beverage tax, and utility taxes finance most of these services. The business-type activities of the Village include water and sewerage, Arboretum and Buffalo Grove golf courses, and refuse. The intent is for the fees to cover the costs of operations, infrastructure replacement, and debt services expenses. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Village’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The Village maintains ten individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Lake Cook Road TIF, Debt Service, Facilities Development, Street Maintenance, and Vehicle Equipment Replacement Funds, which are considered major funds. Data from the other four governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The Village adopts an annual appropriated budget for all of the governmental funds. A budgetary comparison schedule for these funds has been provided to demonstrate compliance with this budget.
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VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
USING THIS ANNUAL REPORT - Continued Proprietary Funds The Village maintains two proprietary fund types: enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government–wide financial statements. The Village utilizes enterprise funds to account for its water and sewer utility, refuse service and activities at the Buffalo Grove and Arboretum Golf Courses. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village’s various functions. The Village uses internal service funds to account for its information technology, central garage, and building maintenance services. These services predominantly benefit governmental rather than business-type functions, and therefore, have been included within governmental activities in the government-wide financial statements. Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewerage and Arboretum Golf Fund, which are considered to be major funds of the Village. Data from the other two proprietary funds are combined into a single, aggregated presentation. Individual fund data for each of these proprietary funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting use for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s IMRF and police and fire employee pension obligations, post-employment retirement benefit obligations and budgetary comparison schedules for the General Fund and major special revenue funds. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on pensions.
16
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. The following tables show that in the case of the Village, assets/deferred outflows exceeded liabilities/deferred inflows by $167,520,870.
Governmental Activities 2025 2024
Net Position Business-Type Activities 2025 2024
Totals 2025
2024
139,365,266 212,143,957 9,824,958 361,334,181 16,805,669 378,139,850
109,401,902 189,120,484 9,639,599 308,161,985 23,253,943 331,415,928
Current Assets Capital Assets Other Assets Total Assets Deferred Outflows Total Assets/Deferred Outflows
$ 120,153,380 89,955,558 144,246,098 125,542,211 — — 264,399,478 215,497,769 14,736,979 20,698,133 279,136,457 236,195,902
19,211,886 67,897,859 9,824,958 96,934,703 2,068,690 99,003,393
19,446,344 63,578,273 9,639,599 92,664,216 2,555,810 95,220,026
Long-Term Liabilities Other Liabilities Total Liabilities Deferred Inflows Total Liabilities/Deferred Inflows
134,239,081 131,623,009 20,721,746 15,757,229 154,960,827 147,380,238 43,440,568 28,118,465 198,401,395 175,498,703
6,261,714 4,270,670 10,532,384 1,685,201 12,217,585
7,327,569 140,500,795 138,950,578 2,666,561 24,992,416 18,423,790 9,994,130 165,493,211 157,374,368 1,892,842 45,125,769 30,011,307 11,886,972 210,618,980 187,385,675
Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit)
83,586,500 74,625,942 9,628,773 9,392,806 (12,480,211) (23,321,549)
61,804,920 — 24,980,888
58,923,878 145,391,420 133,549,820 — 9,628,773 9,392,806 24,409,176 12,500,677 1,087,627
80,735,062
86,785,808
83,333,054 167,520,870 144,030,253
Total Net Position
60,697,199
A portion of the Village’s net position, $145,391,420 or 86.8 percent, reflects its investment in capital assets (for example, land, construction in progress, buildings, equipment and vehicles, land improvements, streets and storm sewers, water and sewer infrastructure, lease assets - equipment, and subscription assets - software), less any related debt used to acquire those assets that is still outstanding. The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Village’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion, $9,628,773 or 5.7 percent, of the Village’s net position represents resources that are subject to external restrictions on how they may be used. The remaining $12,500,677 or 7.5 percent represents unrestricted net position and may be used to meet the government’s ongoing obligations to citizens and creditors.
17
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued
Governmental Activities 2025 2024
Changes in Net Position Business-Type Activities 2025 2024
7,275,289 3,072,796 5,700,429
6,774,876 6,174,517 197,573
21,713,512 — —
18,070,495 23,155,876 7,825,838 753,030 2,658,136 1,194,158 7,413,595 77,119,642
17,696,110 19,582,601 7,438,727 637,733 2,493,261 1,013,228 7,729,103 69,737,729
Expenses General Government Public Safety Public Works Interest on Long-Term Debt Water and Sewerage Arboretum Golf Buffalo Grove Golf Refuse Total Expenses
14,373,864 33,709,203 9,557,962 2,575,541 — — — — 60,216,570
Change in Net Position Before Transfers
Totals 2025
2024
20,974,959 — —
28,988,801 3,072,796 5,700,429
27,749,835 6,174,517 197,573
— — — — — — 1,111,833 22,825,345
— — — — — — 1,378,713 22,353,672
18,070,495 23,155,876 7,825,838 753,030 2,658,136 1,194,158 8,525,428 99,944,987
17,696,110 19,582,601 7,438,727 637,733 2,493,261 1,013,228 9,107,816 92,091,401
9,767,455 35,138,534 8,199,121 2,747,619 — — — — 55,852,729
— — — — 12,063,689 1,780,598 1,535,742 857,771 16,237,800
— — — — 11,759,931 1,739,321 1,317,333 924,041 15,740,626
14,373,864 33,709,203 9,557,962 2,575,541 12,063,689 1,780,598 1,535,742 857,771 76,454,370
9,767,455 35,138,534 8,199,121 2,747,619 11,759,931 1,739,321 1,317,333 924,041 71,593,355
16,903,072
13,885,000
6,587,545
6,613,046
23,490,617
20,498,046
Transfers
3,134,791
2,867,212
(3,134,791)
(2,867,212)
—
—
Change in Net Position
20,037,863
16,752,212
3,452,754
3,745,834
23,490,617
20,498,046
Net Position - Beginning as Previously Reported Restatement - Change in Accounting Principle Net Position - Beginning
60,697,199
44,942,757
83,333,054
79,661,408 144,030,253 124,604,165
— 60,697,199
(997,770) 43,944,987
— 83,333,054
(74,188) — (1,071,958) 79,587,220 144,030,253 123,532,207
Net Position - Ending
80,735,062
60,697,199
86,785,808
83,333,054 167,520,870 144,030,253
Revenues Program Revenues Charges for Services Operating Grants/Contributions Capital Grants/Contributions General Revenues Property Tax Sales and Use Taxes Income Tax Telecommunications Taxes Utility Taxes Property Transfer Taxes Other General Revenues Total Revenues
$
18
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Net position of the Village’s governmental activities increased by 33.0 percent ($80,735,062 in 2025 compared to $60,697,199 in 2024). Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints, totaled a deficit of $12,480,211 at December 31, 2025. Net position of business-type activities increased by 4.1 percent ($86,785,808 in 2025 compared to $83,333,054 in 2024). Governmental Activities Revenues for governmental activities totaled $77,119,642, while the cost of all governmental functions totaled $60,216,570. This results in an increase of $16,903,072, prior to transfers in of $3,134,791. In 2024, revenues of $69,737,729 exceeded expenses of $55,852,729, resulting in an increase of $13,885,000, prior to transfers in of $2,867,212. The increase in 2025 was primarily due to unexpended capital projects budgeted for the year. The following table graphically depicts the major revenue sources of the Village. It depicts very clearly the reliance on property taxes and sales and use taxes to fund governmental activities. It also clearly identifies the less significant percentage the Village receives from charges for services. Revenue by Source - Governmental Activities Income Tax 10.2% Telecommunications Taxes 1.0% Utility Taxes 3.4% Property Transfer Taxes 1.6%
Sales and Use Taxes 30.0%
Other General Revenues 9.6%
Charges for Services 9.4% Operating Grants/Contributions 4.0%
Property Tax 23.4%
Capital Grants/Contributions 7.4%
19
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Governmental Activities The ‘Expenses and Program Revenues’ Table identifies those governmental functions where program expenses greatly exceed revenues. Expenses and Program Revenues - Governmental Activities $40,000,000
$20,000,000
$— General Government
Public Safety
Expenses
Public Works
Interest on Long-Term Debt
Program Revenues
Business-Type Activities Business-Type activities posted total revenues of $22,825,345, while the cost of all business-type activities totaled $16,237,800. This results in an increase of $6,587,545, prior to transfers out of $3,134,791. In 2024, revenues of $22,353,672 exceeded expenses of $15,740,626, resulting in an increase of $6,613,046, prior to transfers out of $2,867,212. The increase in the current year is primarily due to increased water charges for services as the fixed facility fees were increased for the first time since they were implemented in 2020 coupled with the annual increase of 4% in the water and village sewer rates. Expenses and Program Revenues - Business-Type Activities $20,000,000 $17,500,000 $15,000,000 $12,500,000 $10,000,000 $7,500,000 $5,000,000 $2,500,000 $— Water and Sewerage
Arboretum Golf Expenses
Buffalo Grove Golf
Program Revenues
20
Refuse Service
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the Village’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The Village’s governmental funds reported combining ending fund balances of $88,470,550, which is $25,053,435, or 39.5 percent, higher than last year’s total of $63,417,115. Of the $88,470,550 total, $20,394,591, or approximately 23.1 percent, of the fund balance constitutes unassigned fund balance. The General Fund is the chief operating fund of the Village. At December 31, 2025, unassigned fund balance in the General Fund was $20,394,591, which represents 33.9 percent of the total fund balance of the General Fund. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance in the General Fund represents approximately 39.3 percent of total General Fund expenditures. The General Fund concluded the fiscal year with a balance of $60,137,989, reflecting a 14.6 percent increase from the previous year's balance of $52,464,449. This $7,673,540 increase is due to primarily to several major revenue sources, most notably State Sales Tax and Home Rule Sales Tax. The Lake Cook Road TIF Fund concluded the fiscal year with a balance of $1,814,180, reflecting a 2.6 percent increase from the previous year's balance of $1,769,001. This $45,179 increase is due to an increase in incremental property taxes received as a result of improvements made to TIF properties less revenue sharing payments related to the Clove Project. The Debt Service Fund concluded the fiscal year with a balance of $16,498, reflecting a 35.1 percent decrease from the previous year's balance of $25,432. This $8,934 decrease is due to property tax receipts coming in under prior year. The Facilities Development Fund concluded the fiscal year with a balance of $15,026,142, reflecting a 1003.4 percent increase from the previous year's balance of $1,361,815. This $13,664,327 increase is due to the issuance of $16.7 million in bonds to fund major projects at both Fire Station 25 and Fire Station 26 and not all the bond proceeds being spent during the year. The Street Maintenance Fund concluded the fiscal year with a balance of $5,212,600, reflecting a 153.7 percent increase from the previous year's balance of $2,054,823. This $3,157,777 increase is due to the issuance of $8.0 million in bonds to fund street projects and not all the bond proceeds being spent during the year. The Vehicle Equipment Replacement Fund concluded the fiscal year with a balance of $17,745, reflecting no change from the previous year. Proprietary Funds The Village’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The Village reports the Water and Sewerage Fund and Arboretum Golf Fund as major proprietary funds. The Village intends to run the funds at a breakeven rate. Periodically, there will be an annual surplus or draw down due to timing of capital projects.
21
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS - Continued Proprietary Funds - Continued The Water and Sewerage Fund concluded the fiscal year with a balance of $76,192,658, reflecting a 3.8 percent increase from the previous year's balance of $73,373,946. Unrestricted net position in the Water and Sewerage Fund totaled $21,995,139 at December 31, 2025. This $2,818,712 increase is due to increased water and sewer user charges coupled with decreases in lower loan and installment note obligations and deferred items booked in 2025. The Arboretum Golf Fund concluded the fiscal year with a balance of $6,891,687, reflecting a 2.4 percent increase from the previous year's balance of $6,730,303. Unrestricted net position in the Arboretum Golf Fund totaled $822,889 at December 31, 2025. This $161,384 increase is due to higher-than-expected merchandise sales. GENERAL FUND BUDGETARY HIGHLIGHTS The Board of Trustees made no budget amendment to the General Fund during the year. General Fund actual revenues for the year totaled $66,266,046, compared to budgeted revenues of $56,112,738. Revenues for all functions, except for licenses and permits, came in over budget. The General Fund actual expenditures for the year were $2,673,659 lower than budgeted ($51,953,748 actual compared to $54,627,407 budgeted). Expenditures for all functions, except for general government and debt service, came in under budget. CAPITAL ASSETS The Village’s investment in capital assets for its governmental and business type activities as of December 31, 2025 was $212,143,957 (net of accumulated depreciation/amortization). This investment in capital assets includes land, construction in progress, buildings, equipment and vehicles, land improvements, streets and storm sewers, water and sewer infrastructure, lease assets - equipment, and subscription assets - software. Capital Assets - Net of Depreciation/Amortization Governmental Business-Type Activities Activities Totals 2025 2024 2025 2024 2025 2024 Land Construction in Progress Buildings Equipment and Vehicles Land Improvements Streets and Storm Sewers Water and Sewer Infrastructure Lease Assets - Equipment Subscription Assets - Software Totals
$
43,844,430 22,648,625 31,243,540 9,239,677 2,663,658 31,945,625 — 500,290 2,160,253
43,844,430 26,765,968 11,604,912 8,995,085 2,737,077 28,659,779 — 571,759 2,363,201
6,198,514 7,245,868 1,155,739 562,369 123,221 — 51,904,245 437,122 270,781
6,198,514 4,498,511 1,286,096 450,761 25,221 — 50,240,944 582,828 295,398
144,246,098 125,542,211
67,897,859
63,578,273 212,143,957 189,120,484
22
50,042,944 29,894,493 32,399,279 9,802,046 2,786,879 31,945,625 51,904,245 937,412 2,431,034
50,042,944 31,264,479 12,891,008 9,445,846 2,762,298 28,659,779 50,240,944 1,154,587 2,658,599
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
CAPITAL ASSETS - Continued This year’s major additions included: Construction in Progress Buildings Equipment and Vehicles Streets and Storm Sewers Water and Sewer Infrastructure
$
20,775,455 77,402 1,987,059 3,509,739 2,800,451 29,150,106
The Village maintains an AAA rating from Standard and Poor's Corporation for general obligation debt. This rating has not changed in the past five years. Additional information on the Village’s capital assets can be found in Note 3 of this report. LONG-TERM DEBT At year-end, the Village had total outstanding debt of $90,236,745 as compared to $69,959,970 the previous year, an increase of 29.0 percent. The following is a comparative statement of outstanding debt: Long-Term Debt Outstanding Governmental Business-Type Activities Activities 2025 2024 2025 2024 General Obligation Bonds Payable TIF Revenue Note Payable IEPA Loans Payable Installment Note Payable Leases Payable Subscriptions Payable Total
Totals 2025
2024
$ 64,180,000 42,766,180 19,000,000 19,000,000 — — 388,639 443,998 501,069 571,747 2,369,400 2,523,650
— — 189,966 2,852,699 459,081 295,891
— 64,180,000 42,766,180 — 19,000,000 19,000,000 211,365 189,966 211,365 3,528,795 3,241,338 3,972,793 600,847 960,150 1,172,594 313,388 2,665,291 2,837,038
86,439,108 65,305,575
3,797,637
4,654,395 90,236,745 69,959,970
Additional information on the Village’s long-term debt can be found in Note 3 of this report.
23
VILLAGE OF BUFFALO GROVE, ILLINOIS Management's Discussion and Analysis December 31, 2025
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES The Village entered 2026 with a balanced operating budget. The budget for the fiscal year beginning January 1, 2026, is $143,867,395, a 10.9 percent decrease from the previous year. The General Fund operating budget totals $66,692,354, resulting in a 3.9 percent increase over the previous year. Total capital spending during the year is estimated to be $27.7 million. Continued emphasis will remain on developing innovative ways to deliver services and reduce costs while actively working to improve sales tax collections through economic development. In 2026, the Village enters the third year of Phase II of a capital program to address the community’s water and sanitary sewer system infrastructure replacement and street resurfacing and reconstruction projects. The additional revenue from increases to water and sewer utility user charges and fixed facility fees are allocated entirely to capital projects and used to offset debt service exposure in the property tax levy. Property taxes remain the Village’s most stable revenue source. A tax levy was adopted for the 2026 budget that was $325,638 over the prior year for an increase of 1.90 percent. The Village mitigated an additional $5.60 million in levied taxes through full abatements of the 2012, 2016, 2020, and 2022 bonds, as well as a partial abatement of the 2025 bonds. If these amounts were not abated the levy increase would have been 32.1 percent. The Village will use operating funds to pay the bond payable amount not covered by the tax levy. A Storm Water Management User Fee introduced in the FY 2016 budget offsets the costs related to maintaining, repairing, and developing an infrastructure reserve for future system needs. This revenue stream has resulted in an additional $1.1 million to the General Fund that is funding new and replacement storm sewer infrastructure. Budgeted expenditures include general wage adjustments for non-represented employees and contractual salary adjustments which are part of labor agreements. The Village currently has two represented employee groups (police and fire). Health insurance increases are minimized by the economies of scale provided by the Village’s membership in the Intergovernmental Personnel Benefits Cooperative (IPBC). All other operating expenditures will be generally unchanged. Capital projects are budgeted to decrease by $25.5 million, or 47.9%. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This report is designed to provide our citizens, customers, investors, and creditors with a general overview of the Village’s finances and to demonstrate the Village’s accountability for the money it receives. Questions concerning this report or requests for additional information should be directed to Chris Black, Director of Finance or Christine Berman, Deputy Director of Finance, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089.
24
BASIC FINANCIAL STATEMENTS The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets of statements include: Government-Wide Financial Statements Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Funds In addition, the notes to the financial statements are included to provide information that is essential to a user’s understanding of the basic financial statements.
25
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position December 31, 2025
See Following Page
26
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position December 31, 2025
Governmental Activities
Primary Government Business-Type Activities
Totals
ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Property Taxes Accounts Lease Other Inventories/Prepaids Total Current Assets
$
88,619,896
14,781,600
103,401,496
25,726,960 — 544,475 5,098,263 163,786 120,153,380
— 2,538,611 1,553,424 256,515 81,736 19,211,886
25,726,960 2,538,611 2,097,899 5,354,778 245,522 139,365,266
Noncurrent Assets Capital Assets Nondepreciable Depreciable/Amortizable Accumulated Depreciation/Amortization Total Capital Assets
66,493,055 173,355,123 (95,602,080) 144,246,098
13,444,382 119,195,995 (64,742,518) 67,897,859
79,937,437 292,551,118 (160,344,598) 212,143,957
Other Assets Investment in Joint Venture Total Noncurrent Assets Total Assets
— 144,246,098 264,399,478
9,824,958 77,722,817 96,934,703
9,824,958 221,968,915 361,334,181
3,156,574 4,053,034 4,883,161 2,644,210 — 14,736,979 279,136,457
570,547 — — 168,393 1,329,750 2,068,690 99,003,393
3,727,121 4,053,034 4,883,161 2,812,603 1,329,750 16,805,669 378,139,850
DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP Deferred Items - ARO Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources
The notes to the financial statements are an integral part of this statement. 27
Governmental Activities
Primary Government Business-Type Activities
Totals
LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Accrued Interest Payable Deposits Payable Due to Other Governments Compensated Absences Payable Current Portion of Long-Term Liabilities Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Net Pension Liability - IMRF Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP General Obligation Bonds Payable - Net IEPA Loans Payable Installment Note Payable TIF Revenue Note Payable Leases Payable Subscriptions Payable Asset Retirement Obligation Total Noncurrent Liabilities Total Liabilities
$
9,734,097 1,380,847 2,738,738 1,346,118 748,794 434,483 4,338,669 20,721,746
3,139,580 104,393 — 31,559 — 33,092 962,046 4,270,670
12,873,677 1,485,240 2,738,738 1,377,677 748,794 467,575 5,300,715 24,992,416
1,737,934 5,431,877 18,817,328 10,158,994 9,563,692 66,562,085 — 331,066 19,000,000 430,167 2,205,938 — 134,239,081 154,960,827
132,369 981,803 — — 609,038 — 168,073 2,106,041 — 311,828 277,062 1,675,500 6,261,714 10,532,384
1,870,303 6,413,680 18,817,328 10,158,994 10,172,730 66,562,085 168,073 2,437,107 19,000,000 741,995 2,483,000 1,675,500 140,500,795 165,493,211
17,441,179 30,000 528,750 10,238 9,841,313 9,633,989 5,955,099 43,440,568 198,401,395
— — 1,304,107 1,851 — — 379,243 1,685,201 12,217,585
17,441,179 30,000 1,832,857 12,089 9,841,313 9,633,989 6,334,342 45,125,769 210,618,980
DEFERRED INFLOWS OF RESOURCES Property Taxes Grants Leases Deferred Items - IMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Restricted Restricted - IMRF Restricted - Seizure Funds Restricted - Motor Fuel Tax Restricted - Metra Parking Lot Restricted - TIF Unrestricted (Deficit)
83,586,500
61,804,920
145,391,420
773,229 795,968 5,992,288 22,047 2,045,241 (12,480,211)
— — — — — 24,980,888
773,229 795,968 5,992,288 22,047 2,045,241 12,500,677
Total Net Position
80,735,062
86,785,808
167,520,870
The notes to the financial statements are an integral part of this statement. 28
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2025
Expenses Governmental Activities General Government Public Safety Public Works Interest on Long-Term Debt Total Governmental Activities
$
Charges for Services
Program Revenues Operating Grants/ Contributions
Capital Grants/ Contributions
14,373,864 33,709,203 9,557,962 2,575,541 60,216,570
3,550,431 3,674,206 50,652 — 7,275,289
— 536,924 2,535,872 — 3,072,796
— — 5,700,429 — 5,700,429
Business-Type Activities Water and Sewerage Arboretum Golf Buffalo Grove Golf Refuse Service Total Business-Type Activities
12,063,689 1,780,598 1,535,742 857,771 16,237,800
16,809,591 1,921,565 1,872,342 1,110,014 21,713,512
— — — — —
— — — — —
Total Primary Government
76,454,370
28,988,801
3,072,796
5,700,429
General Revenues Taxes Property Tax Home Rule Sales Tax Telecommunications Tax Utility Tax Property Transfer Tax Food and Beverage Tax Hotel and Motel Tax Other Taxes Intergovernmental - Unrestricted Income Tax Sales Tax Local Use Tax Replacement Tax Road and Bridge Tax Vernon Video Gaming Tax Cannabis Tax Other Intergovernmental Investment Income Miscellaneous Transfers - Internal Activity Change in Net Position Net Position - Beginning Net Position - Ending
The notes to the financial statements are an integral part of this statement. 29
Net (Expenses)/Revenues Primary Government Governmental Business-Type Activities Activities
Totals
(10,823,433) (29,498,073) (1,271,009) (2,575,541) (44,168,056)
— — — — —
(10,823,433) (29,498,073) (1,271,009) (2,575,541) (44,168,056)
— — — — —
4,745,902 140,967 336,600 252,243 5,475,712
4,745,902 140,967 336,600 252,243 5,475,712
(44,168,056)
5,475,712
(38,692,344)
18,070,495 9,374,122 753,030 2,658,136 1,194,158 1,059,860 144,138 127,385
— — — — — — — —
18,070,495 9,374,122 753,030 2,658,136 1,194,158 1,059,860 144,138 127,385
7,825,838 13,394,094 387,660 35,306 127,755 216,183 215,100 152,527 3,917,376 1,417,965 3,134,791 64,205,919
— — — — — — — — 689,611 422,222 (3,134,791) (2,022,958)
7,825,838 13,394,094 387,660 35,306 127,755 216,183 215,100 152,527 4,606,987 1,840,187 — 62,182,961
20,037,863
3,452,754
23,490,617
60,697,199
83,333,054
144,030,253
80,735,062
86,785,808
167,520,870
The notes to the financial statements are an integral part of this statement. 30
VILLAGE OF BUFFALO GROVE, ILLINOIS Balance Sheet - Governmental Funds December 31, 2025
General
Special Revenue Lake Cook Road TIF
ASSETS Cash and Investments Receivables - Net of Allowances Taxes Other Inventories Prepaids
57,680,300
1,787,332
25,391,691 1,444,527 161,936 1,850
— 54,670 — —
84,680,304
1,842,002
4,234,258 1,327,733 490,648 604,972 748,794 7,406,405
27,822 — — — — 27,822
17,105,910 30,000 17,135,910 24,542,315
— — — 27,822
Nonspendable Restricted Committed Unassigned Total Fund Balances
163,786 1,569,197 38,010,415 20,394,591 60,137,989
— 1,814,180 — — 1,814,180
Total Liabilities, Deferred Inflows of Resources and Fund Balances
84,680,304
1,842,002
Total Assets
$
LIABILITIES Accounts Payable Accrued Payroll Deposits Payables Due to Other Funds Due to Other Governments Total Liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Grants Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources FUND BALANCES
The notes to the financial statements are an integral part of this statement. 31
Capital Projects Facilities Development
Street Maintenance
Vehicle Equipment Replacement
7,318
16,427,843
5,846,784
28,422
5,843,097
87,621,096
335,269 9,656 — —
— — — —
— 3,179,855 — —
— — — —
— 409,555 — —
25,726,960 5,098,263 161,936 1,850
352,243
16,427,843
9,026,639
28,422
6,252,652
118,610,105
476 — — — — 476
1,401,701 — — — — 1,401,701
2,958,569 — 855,470 — — 3,814,039
10,677 — — — — 10,677
7,256 — — — — 7,256
8,640,759 1,327,733 1,346,118 604,972 748,794 12,668,376
335,269 — 335,269 335,745
— — — 1,401,701
— — — 3,814,039
— — — 10,677
— — — 7,256
17,441,179 30,000 17,471,179 30,139,555
— 16,498 — — 16,498
— 13,166,005 1,860,137 — 15,026,142
— 3,983,042 1,229,558 — 5,212,600
— — 17,745 — 17,745
— 6,245,396 — — 6,245,396
163,786 26,794,318 41,117,855 20,394,591 88,470,550
352,243
16,427,843
9,026,639
28,422
6,252,652
118,610,105
Debt Service
Nonmajor
The notes to the financial statements are an integral part of this statement. 32
Totals
VILLAGE OF BUFFALO GROVE, ILLINOIS Reconciliation of the Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2025
Total Governmental Fund Balances
$
88,470,550
Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in Governmental Activities are not financial resources and therefore, are not reported in the funds. Less: Internal Service Capital Assets
144,246,098 (2,160,253)
Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP
3,146,336 (5,788,279) (4,750,828) (3,310,889)
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable Net Pension Liability - IMRF Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP General Obligation Bonds Payable TIF Revenue Note Payable Leases Payable Accrued Interest Payable
(2,172,417) (5,431,877) (18,817,328) (10,158,994) (9,993,919) (70,178,590) (19,000,000) (501,069) (2,675,555)
Internal service funds are used by the City to charge the costs of certain services to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position.
(187,924)
Net Position of Governmental Activities
80,735,062
The notes to the financial statements are an integral part of this statement. 33
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2025
See Following Page
34
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2025
General Revenues Taxes Property Tax Other Taxes Intergovernmental Charges for Services Licenses and Permits Fines and Forfeitures Investment Income Miscellaneous Total Revenues
16,622,295 15,310,829 22,891,387 3,081,510 393,747 3,724,858 2,940,786 1,300,634 66,266,046
850,320 — — — — — 12,378 — 862,698
11,038,558 33,323,559 7,336,844 182,294
817,519 — — —
70,678 1,815 51,953,748
— — 817,519
14,312,298
45,179
— — — 854,900 (7,493,658) (6,638,758)
— — — — — —
Net Change in Fund Balances
7,673,540
45,179
Fund Balances - Beginning
52,464,449
1,769,001
Fund Balances - Ending
60,137,989
1,814,180
Expenditures General Government Public Safety Public Works Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Debt Issuance Premium on Debt Issuance Disposal of Capital Assets Transfers In Transfers Out
$
Special Revenue Lake Cook Road TIF
The notes to the financial statements are an integral part of this statement. 35
Capital Projects Facilities Development
Street Maintenance
Vehicle Equipment Replacement
329,510 — — — — — — — 329,510
— — — — — — 497,110 — 497,110
— — 5,700,429 — — — 227,817 — 5,928,246
— — — — — — — — —
268,370 — 2,535,872 30 — 75,144 210,266 — 3,089,682
18,070,495 15,310,829 31,127,688 3,081,540 393,747 3,800,002 3,888,357 1,300,634 76,973,292
— — — —
— — — 4,665,877
— — — 16,092,046
— — — 1,844,986
74,609 — — —
11,930,686 33,323,559 7,336,844 22,785,203
2,646,180 2,531,890 5,178,070
— 263,144 4,929,021
— 114,116 16,206,162
— — 1,844,986
— — 74,609
2,716,858 2,910,965 81,004,115
(4,848,560)
(4,431,911)
(10,277,916)
(1,844,986)
3,015,073
(4,030,823)
— — — 4,839,626 — 4,839,626
16,735,000 929,362 — 431,876 — 18,096,238
7,325,000 789,116 — 5,321,577 — 13,435,693
— — 40,364 1,804,622 — 1,844,986
— — — — (2,493,527) (2,493,527)
24,060,000 1,718,478 40,364 13,252,601 (9,987,185) 29,084,258
(8,934)
13,664,327
3,157,777
—
521,546
25,053,435
25,432
1,361,815
2,054,823
17,745
5,723,850
63,417,115
16,498
15,026,142
5,212,600
17,745
6,245,396
88,470,550
Debt Service
Nonmajor
The notes to the financial statements are an integral part of this statement. 36
Totals
VILLAGE OF BUFFALO GROVE, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities - Governmental Activities For the Fiscal Year Ended December 31, 2025
Net Change in Fund Balances - Total Governmental Funds
$
25,053,435
Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. Capital Outlays Depreciation/Amortization Expense Disposals - Cost Disposals - Accumulated Depreciation Less: Internal Service
22,489,487 (3,785,600) (200,443) 200,443 202,948
The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF Change in Deferred Items - Police Pension Change in Deferred Items - Firefighters'' Pension Change in Deferred Items - RBP
(2,003,331) (8,786,711) (8,818,582) (849,846)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds. Change in Compensated Absences Payable Changes in Net Pension Liability - IMRF Changes in Net Pension Liability - Police Pension Changes in Net Pension Liability - Firefighters' Pension Change in Total OPEB Liability - RBP Issuance of Debt Issuance of Bond Premiums Retirement of Debt Amortization of Bond Premium
(7,917) 271,656 9,694,623 8,948,958 436,344 (24,060,000) (1,718,478) 2,716,858 330,582
Changes to accrued interest on long-term debt in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
171,278
Internal service funds are used by the City to charge the cost of certain services to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.
(247,841)
Changes in Net Position of Governmental Activities
20,037,863
The notes to the financial statements are an integral part of this statement. 37
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2025
See Following Page
38
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2025
Business-Type Activities - Enterprise Funds Water and Arboretum Sewerage Golf Nonmajor Totals
Governmental Activities Internal Service
ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Accounts Leases Other Inventories Total Current Assets
$ 11,705,295
778,639
2,297,666
14,781,600
998,800
2,538,611 — 249,281 — 14,493,187
— 829,502 — 50,845 1,658,986
— 723,922 7,234 30,891 3,059,713
2,538,611 1,553,424 256,515 81,736 19,211,886
— 544,475 — — 1,543,275
Noncurrent Assets Capital Assets Nondepreciable Depreciable/Amortizable Accumulated Depreciation/Amortization Total Capital Assets
7,245,868 5,219,738 978,776 13,444,382 103,777,650 11,686,706 3,731,639 119,195,995 (51,192,141) (10,557,480) (2,992,897) (64,742,518) 59,831,377 6,348,964 1,717,518 67,897,859
— 2,633,822 (473,569) 2,160,253
Other Assets Investment in Joint Venture Total Noncurrent Assets Total Assets
9,824,958 69,656,335 84,149,522
— 6,348,964 8,007,950
— 1,717,518 4,777,231
9,824,958 77,722,817 96,934,703
— 2,160,253 3,703,528
436,463 144,490 1,329,750 1,910,703
43,758 — — 43,758
90,326 23,903 — 114,229
570,547 168,393 1,329,750 2,068,690
— — — —
86,060,225
8,051,708
4,891,460
99,003,393
3,703,528
DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - RBP Deferred Items - ARO Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources
The notes to the financial statements are an integral part of this statement. 39
Business-Type Activities - Enterprise Funds Water and Arboretum Sewerage Golf Nonmajor Totals
Governmental Activities Internal Service
LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Accrued Interest Deposits Payable Compensated Absences Payable Total OPEB Liability - RBP IEPA Loan Payable Installment Note Payable Leases Payable Subscriptions Payable Total Current Liabilities
— — 89,865 — 151,881
20,536 14,479 — — 15,348 3,890 — — 57,388 — 111,641
3,139,580 104,393 — 31,559 33,092 27,413 21,893 746,658 147,253 18,829 4,270,670
488,366 53,114 63,183 — — — — 57,573
33,260 751,072 522,585 168,073 2,106,041 — 277,062 1,675,500 5,533,593 9,540,741
37,717 75,299 — — — 190,301 — — 303,317 455,198
61,392 155,432 86,453 — — 121,527 — — 424,804 536,445
132,369 981,803 609,038 168,073 2,106,041 311,828 277,062 1,675,500 6,261,714 10,532,384
— — — — 331,066 — 2,205,938 — 2,537,004 3,362,702
1,416 325,410 — 326,826
142 — 704,681 704,823
293 53,833 599,426 653,552
1,851 379,243 1,304,107 1,685,201
— — 528,750 528,750
9,867,567
1,160,021
1,189,997
12,217,585
3,891,452
Net Investment in Capital Assets Unrestricted
54,197,519 21,995,139
6,068,798 822,889
1,538,603 2,162,860
61,804,920 24,980,888
(597,786) 409,862
Total Net Position
76,192,658
6,891,687
3,701,463
86,785,808
(187,924)
Noncurrent Liabilities Compensated Absences Payable Net Pension Liability - IMRF Total OPEB Liability - RBP IEPA Loans Payable Installment Note Payable Leases Payable Subscriptions Payable Asset Retirement Obligation Total Long-Term Liabilities Total Liabilities
$
3,080,973 81,882 — 25,075 8,315 23,523 21,893 746,658 — 18,829 4,007,148
38,071 8,032 — 6,484 9,429
—
—
163,462 825,698
DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - RBP Deferred Items - Leases Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION
The notes to the financial statements are an integral part of this statement. 40
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2025
Business-Type Activities - Enterprise Funds Water and Arboretum Sewerage Golf Nonmajor Totals Operating Revenues Charges for Services Miscellaneous Total Operating Revenues
Governmental Activities Internal Service
$ 16,809,591 422,222 17,231,813
1,921,565 — 1,921,565
2,982,356 — 2,982,356
21,713,512 422,222 22,135,734
6,185,012 — 6,185,012
Operating Expenses Operations Depreciation and Amortization Total Operating Expenses
9,866,133 2,115,678 11,981,811
1,578,941 189,050 1,767,991
2,282,007 103,455 2,385,462
13,727,081 2,408,183 16,135,264
6,079,194 202,948 6,282,142
Operating Income (Loss)
5,250,002
153,574
596,894
6,000,470
(97,130)
610,379 — (81,878) 528,501
20,417 — (12,607) 7,810
58,815 — (8,051) 50,764
689,611 — (102,536) 587,075
29,019 117,331 (166,436) (20,086)
Income Before Transfers
5,778,503
161,384
647,658
6,587,545
(117,216)
Transfers Out
(2,959,791)
—
(175,000)
(3,134,791)
(130,625)
Change in Net Position
2,818,712
161,384
472,658
3,452,754
(247,841)
Net Position - Beginning
73,373,946
6,730,303
3,228,805
83,333,054
59,917
Net Position - Ending
76,192,658
6,891,687
3,701,463
86,785,808
(187,924)
Nonoperating Revenues (Expenses) Investment Income Other Income Interest Expense
The notes to the financial statements are an integral part of this statement. 41
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2025
Business-Type Activities - Enterprise Funds Water and Arboretum Sewerage Golf Nonmajor Totals Cash Flows from Operating Activities Receipts from Customers and Users Payments to Employees Payments to Suppliers
$ 17,126,973 (1,290,830) (7,046,914) 8,789,229
Cash Flows from Noncapital Financing Activities Net Change in Lessor Lease Transactions Transfers Out
2,064,894 3,117,960 22,309,827 (250,674) (366,423) (1,907,927) (1,603,080) (1,981,789) (10,631,783) 211,140 769,748 9,770,117
Governmental Activities Internal Service
6,302,343 (1,137,967) (4,242,509) 921,867
— (2,959,791) (2,959,791)
— — —
— (175,000) (175,000)
— (3,134,791) (3,134,791)
(544,475) (130,625) (675,100)
(6,660,619) (714,992) (81,878) (7,457,489)
— (86,516) (12,607) (99,123)
— (55,250) (8,051) (63,301)
(6,660,619) (856,758) (102,536) (7,619,913)
— (209,609) (166,436) (376,045)
610,379
20,417
58,815
689,611
29,019
Net Change in Cash and Cash Equivalents
(1,017,672)
132,434
590,262
(294,976)
(100,259)
Cash and Cash Equivalents - Beginning
12,722,967
646,205
1,707,404
15,076,576
1,099,059
Cash and Cash Equivalents - Ending
11,705,295
778,639
2,297,666
14,781,600
998,800
5,250,002
153,574
596,894
6,000,470
(97,130)
2,115,678 — (104,840) 1,528,389
189,050 143,329 (274,813)
103,455 — 135,604 (66,205)
2,408,183 — 174,093 1,187,371
202,948 117,331 — 698,718
8,789,229
211,140
769,748
9,770,117
921,867
Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets Principal Paid on Debt Interest Paid on Debt
Cash Flows from Investing Activities Investment Income
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization Other Income (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities
The notes to the financial statements are an integral part of this statement. 42
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Fiduciary Net Position December 31, 2025
Pension Trust ASSETS Cash and Cash Equivalents Investments Illinois Police Pension Investment Fund Illinois Firefighters' Pension Investment Fund Equity Securities Due from Municipality Prepaids Total Assets
$
841,456 114,183,160 99,862,059 831,653 604,972 8,518 216,331,818
LIABILITIES 21,109
Accounts Payable NET POSITION Net Position Restricted for Pensions
The notes to the financial statements are an integral part of this statement. 43
216,310,709
VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2025
Pension Trust Additions Contributions - Employer Contributions - Plan Members Contributions - Other Total Contributions Investment Income Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Total Additions
$
5,750,172 1,391,023 8,352 7,149,547
2,421,975 30,755,281 33,177,256 (286,622) 32,890,634 40,040,181
Deductions Administration Benefits and Refunds Total Deductions
173,648 12,144,613 12,318,261
Change in Fiduciary Net Position
27,721,920
Net Position - Beginning
188,588,789
Net Position - Ending
216,310,709
The notes to the financial statements are an integral part of this statement. 44
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Buffalo Grove (the Village), Illinois incorporated in 1958, is a home-rule municipality, under the 1970 Illinois Constitution, located in both Lake County, Illinois and Cook County, Illinois. The Village operates under a Council-Manager form of government and provides public safety (police and fire protection), sanitation (water and sewer), building and zoning, engineering, recreation, civil defense and overall administration. The government-wide financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the Village’s accounting policies established in GAAP and used by the Village are described below. REPORTING ENTITY The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is both legally and substantively separate from the government. Management has determined that there are two fiduciary component units that are required to be included in the financial statements of the Village as pension trust funds and there are no discretely presented component units to include in the reporting entity. Blended Component Units Police Pension Employees Retirement System The Village’s sworn police employees participate in the Buffalo Grove Police Pension Fund (BGPPF). BGPPF functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village President, one elected pension beneficiary and two elected police employees constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining BGPPF costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the Village, the BGPPF is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the Village’s police employees. The BGPPF is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the BGPPF. Firefighters’ Pension Employees Retirement System The Village’s sworn firefighters participate in the Buffalo Grove Firefighters’ Pension Fund (BGFPF). BGFPF functions for the benefit of those employees and is governed by a five-member pension board, with two members appointed by the Village President, two elected from active participants of the Fund, and one elected from the retired members of the Fund. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining BGFPF costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the Village, the BGFPF is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the Village’s sworn firefighters. The BGFPF is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the BGFPF. 45
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION Government-Wide Statements The Village’s basic financial statements include both government-wide (reporting the Village as a whole) and fund financial statements (reporting the Village’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business type. The Village’s police and fire safety, public works, and general administrative services are classified as governmental activities. The Village’s water and sewerage, Arboretum golf, Buffalo Grove golf, and refuse services are classified as business-type activities. In the government-wide Statement of Net Position, both the governmental and business-type activities columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred inflows and obligations. The Village’s net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The Village first utilizes restricted resources to finance qualifying activities. The government-wide Statement of Activities reports both the gross and net cost of each of the Village’s functions and business-type activities (general government, public safety, public works, etc.). The functions are supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which include 1) charges to customers or applicants who purchase, use, or directly benefit from foods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. The net costs (by function or business-type activity) are normally covered by general revenue (property tax, sales tax, intergovernmental revenues, investment income, etc.). The Village does not allocate indirect costs. An administrative service fee is charged by the General Fund to the other operating funds that is eliminated like a reimbursement (reducing the revenue and expense in the General Fund) to recover the direct costs of General Fund services provided (finance, personnel, purchasing, legal, technology management, etc.). This government-wide focus is more on the sustainability of the Village as an entity and the change in the Village’s net position resulting from the current year’s activities. Fund Financial Statements The financial transactions of the Village are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets/deferred outflows, liabilities/deferred inflows, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis in fund financial statements is on the major funds in either the governmental or business-type activities categories.
46
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows, liabilities/ deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The Village electively added funds, as major funds, which either have debt outstanding or a specific or community focus. The nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The various funds are reported by generic classification within the financial statements. The following fund types are used by the Village: Governmental Funds The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the Village: General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is a major fund. Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The Village maintains five special revenue funds. The Lake Cook Road TIF Fund, a major fund, is used to account for incremental revenues generated within the TIF boundaries and costs incurred from the formation and redevelopment of the Village's Lake Cook Road Corridor. Debt service funds are used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The Debt Service Fund is treated as a major fund.
47
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Governmental Funds - Continued Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The Facilities Development Fund, a major fund, is used to account for and reports financial resources that are restricted, committed or assigned to expenditures for acquisition, construction, improvement, repair, and replacement of the Village’s capital facilities. The Street Maintenance Fund, also a major fund, is used to account for and reports financial resources that are restricted, committed or assigned to expenditures for acquisition, construction, improvement, repair, and replacement of the Village’s roadways. The Vehicle Equipment Replacement Fund, also a major fund, is used to account for and reports financial resources that are restricted, committed or assigned to expenditures for the acquisition, construction, improvement, repair, and replacement of the Village's vehicles and equipment. Proprietary Funds The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The following is a description of the proprietary funds of the Village: Enterprise funds are required to account for operations for which a fee is charged to external users for goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The Village maintains four enterprise funds. The Water and Sewerage Fund, a major fund, is used to account for the revenue and expenses related to the operation of the water and sewerage system. The Arboretum Golf Fund, also a major fund, is used to account for the revenues and expenses related to the operation of the golf course. Internal service funds are used to account for the financing of goods or services provided by an activity to other departments, funds or component units of the Village on a cost-reimbursement basis. The Village maintains three internal services funds. The Information Technology Fund is used to account for all costs associated with providing technology services to all departments for the operation of the Village. The Central Garage Fund is used to account for the activity necessary to operate and maintain the Village’s automotive fleet. User departments are charged a proportionate share determined by the number and types of vehicles in each department. The Building Maintenance Fund is used to account for providing a clean, healthy, and safe working environment in Village facilities, meeting areas and public areas. The Village’s internal service funds are presented in the proprietary fund financial statements. Because the principal users of the internal services are the Village’s governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (general government, public safety, public works, etc.).
48
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fiduciary Funds Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support Village programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. Pension trust funds are used to account for assets held in a trustee capacity for pension benefit payments. The Police Pension Fund accounts for the accumulation of resources to pay retirement and other related benefits for sworn members of the Village’s police force. The Firefighters’ Pension Fund accounts for the accumulation of resources to pay retirement and other related benefits for sworn members of the Village’s Fire Department. The Village’s pension trust funds are presented in the fiduciary fund financial statements. Since by definition these assets are being held for the benefit of a third party (pension participants) and cannot be used to address activities or obligations of the Village, these funds are not incorporated into the government-wide statements. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets/ deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. All proprietary and pension trust funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows, liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary and pension trust funds equity is classified as net position. Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities, both governmental and businesstype activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic asset used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting from exchange and exchange-like transactions are recognized when the exchange takes place. 49
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued Basis of Accounting - Continued In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year-end. The Village recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70. A sixty-day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are recognized when due. In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to accrual are property taxes, sales and use taxes, franchise taxes, licenses, interest revenue, and charges for services. All other revenues are not susceptible to accrual because generally they are not measurable until received in cash. All proprietary and pension trust funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Village’s enterprise funds, and of the Village’s internal service funds are charges to customers for sales and services. The Village also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation/amortization on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION Cash and Investments For the purpose of the Statement of Net Position, cash and cash equivalents are considered to be cash on hand, demand deposits, and cash with fiscal agent. For the purpose of the proprietary funds “Statement of Cash Flows,” cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less. Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
50
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION - Continued Receivables In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivables balances for governmental activities include property taxes, sales and use taxes, franchise taxes, and grants. Business-type activities report charges for services as their major receivables. Interfund Receivables, Payables and Activity Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Internal service fund services provided and used are not eliminated in the process of consolidation. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements. Prepaids/Inventories Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government-wide and fund financial statements. Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs of governmental fund-type prepaids/ inventories are recorded as expenditures when consumed rather than when purchased. Capital Assets Capital assets purchased or acquired with an original cost of $10,000 or more (depending on asset class) are reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long-lived assets of the Village as a whole. When purchased, such assets are recorded as expenditures in the governmental funds and capitalized. Infrastructure such as streets, traffic signals and signs are capitalized. The valuation basis for general capital assets are historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation basis for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are recorded at acquisition value on the date donated.
51
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION - Continued Capital Assets - Continued Depreciation/amortization on all assets is computed and recorded using the straight-line method of depreciation/ amortization over the following estimated useful lives: Buildings Equipment and Vehicles Land Improvements Streets Storm Sewers Infrastructure Lease Assets - Equipment Subscription Assets - Software
5 - 30 Years 2 - 20 Years 5 - 50 Years 5 - 50 Years 5 - 50 Years 5 - 50 Years 5 - 10 Years 14 - 20 Years
Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents a consumption/acquisition of net assets that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time. Compensated Absences The Village policy allows full time and part time employees to earn varying amounts of sick and vacation pay for each year employed. Employees are eligible to accrue vacation based on their length of service with the Village. Full time employees accrue vacation between one to twenty-five vacation days and ten sick days. Employees can accrue up to 260 days of sick leave based on their length of service with the Village. Part time employees accrue five to nine vacation days. Upon separation of employment, employees hired after January 1, 2012 are not eligible for a "cash-out" and may use all accrued vacation leave prior to retirement. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses at the time of issuance. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 52
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION - Continued Net Position In the government-wide financial statements, equity is classified as net position and displayed in three components: Net Investment in Capital Assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation/amortization and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted - Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislations. Unrestricted - All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets.” Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETARY INFORMATION The budget data included in the financial statements represent the Village’s program budget and the appropriations represent the Village’s legal expenditure limit. Budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Proprietary Funds, Pension Trust Funds and Internal Service Funds. All governmental fund-type budgets, pension trust fund-type budgets and internal service fundtype budgets are adopted on a basis consistent with GAAP. Proprietary Funds are adopted on a basis other than GAAP in that depreciation expense, income from the joint venture, and contributions from developers are not budgeted, and principal payments on long-term debt (if any) are budgeted. The Village Board of Trustees follows these procedures in establishing the budgetary and appropriations data reflected in the financial statements: 1. The Village Manager submits to the Board a proposed program budget for the fiscal year commencing January 1. The program budget includes proposed expenditures and the means of financing them. 2. Appropriation ordinance public hearings are conducted by the Village to obtain taxpayer comments, and the ordinance is subsequently adopted by the Board. 3. The program budget is legally enacted through a resolution adopted by the Board. 4. Any expenditures that exceed the total appropriations at the fund level must be approved by the Board of Trustees.
53
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - Continued BUDGETARY INFORMATION - Continued The Village Manager is authorized to transfer budgeted amounts between departments within any fund. However, any modifications to the legally adopted appropriation ordinance may not exceed expenditure limits, at the fund level, mandated by the appropriation ordinance without approval by the Board. Appropriations, which are not expended by year-end, lapse and must be re-appropriated in the following year for the expenditure to be made. The Village does not employ the encumbrance method of accounting to reserve net position for subsequent year expenditures. EXCESS OF ACTUAL EXPENDITURES/EXPENSES OVER BUDGET IN INDIVIDUAL FUNDS The following funds had an excess of actual expenditures/expenses over budget as of the date of this report: Fund
Excess
Police Pension Firefighters' Pension
$
353,251 225,382
DEFICIT NET POSITION The following fund had deficit net position as of the date of this report: Fund
Deficit
Information Technology
$
263,566
Deficits will be eliminated by future revenues or transfers. NOTE 3 - DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds except the pension trust funds. Each fund type's portion of this pool is displayed on the financial statements as "cash and investments." In addition, investments are separately held by several of the Village’s funds. The deposits and investments of the pension trust funds are held separately from those of other funds. Permitted Deposits and Investments - Statutes authorize the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of States and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds, the Illinois Metropolitan Investment Fund, and the Illinois Public Reserves Investment Management Trust. The Illinois Funds is an investment pool managed by the Illinois Public Treasurer’s Office which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at the share price, which is the price for which the investment could be sold.
54
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued The Illinois Metropolitan Investment Fund (IMET) is a non-for-profit investment trust formed pursuant to the Illinois Municipal Code. IMET is managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an Investment Company. Investments in IMET are valued at the share price, the price for which the investment could be sold. The Illinois Public Reserves Investment Management Trust (IPRIME) is an investment opportunity and cash management service for Illinois Municipal Treasurers acting on behalf of counties, townships, cities, towns, villages, special road districts, public water supply districts, fire protection districts, drainage districts, levee districts, sewer districts, housing authorities, and all other political corporations or subdivisions of the State of Illinois. Participation in IPRIME is voluntary. IPRIME is not registered with the SEC as an Investment Company. Investments in IPRIME are valued at the share price, the price for which the investment could be sold. The Illinois Trust was established for the purpose of allowing various public agencies including, but not limited to, counties, townships, cities, towns, villages, school districts, housing authorities and public water supply districts, to jointly invest funds in accordance with the Laws of the State of Illinois. Participation in the Illinois Trust is voluntary. The Illinois Trust is not registered with the SEC as an Investment Company. Investments in the Illinois Trust are valued at the share price, the price for which the investment could be sold. Village Deposits. At year-end, the carrying amount of the Village’s deposits for governmental and business-type activities totaled $52,602,870 and the bank balances totaled $51,916,286. Investments. The Village has the following investment fair values and maturities: Investment Maturities (in Years) Fair Value
Less Than 1
1-5
U.S. Treasury Securities $ State and Local Obligations Illinois Funds IMET IPRIME Illinois Trust
2,300,475 4,159,650 17,818,465 6,867,919 34,379 19,617,738
1,102,549 3,036,839 17,818,465 6,867,919 34,379 19,617,738
1,197,926 1,122,811 — — — —
— — — — — —
— — — — — —
Totals
50,798,626
48,477,889
2,320,737
—
—
Investment Type
55
More Than 10
6-10
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Village - Continued The Village has the following recurring fair value measurements as of year-end:
Investments by Fair Value Level Debt Securities U.S. Treasury Securities State and Local Obligations
Total $
Total Investments by Fair Value Level Investments Measured at the Net Asset Value (NAV) Illinois Funds IMET IPRIME Illinois Trust Total Investments at the (NAV)
Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3)
2,300,475 4,159,650
2,300,475 —
— 4,159,650
— —
6,460,125
2,300,475
4,159,650
—
17,818,465 6,867,919 34,379 19,617,738 44,338,501
Total Investments Measured at Fair Value
50,798,626
Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Village’s investment policy protects against fair value losses resulting from rising interest rates by diversifying its investment portfolio to prevent over-concentration of assets in a specific maturity, a specific issuer, or a specific class of securities. The Village does not have a formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
56
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Village - Continued Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Besides investing in instruments authorized under State Statute, the Village’s investment policy applies the “prudent person” standard in managing its investment portfolio. As such, all investments are made with such judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The Village’s investment policy also limits investments in commercial paper to the highest rating classifications, as established by at least two of the four major rating services, and which mature not later than 180 days from the purchase date. Such purchases may not exceed 10% of the issuer corporation’s outstanding obligations. At yearend, the ratings on the Village’s investments in the state and local obligations are rated AAAm by Standard & Poor's. The Village’s investment in the Illinois Funds was rated AAAmmf by Fitch, the Illinois Metropolitan Investment Trust Convenience Fund is rated AAAf/bf by Moody's, the Illinois Public Reserves Investment Management Trust was rated AAAm by Standard & Poor's, and Illinois trust was rated AAAm by Standard & Poor's. Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the Village’s deposits may not be returned to it. The Village’s investment policy requires securing deposit collateral from depository institutions when deposits are in excess of FDIC limits. The amount of deposits not collateralized or insured by an agency of the federal government shall not exceed 75% of the capital stock and surplus of a banking institution. These values shall be reviewed on a quarterly basis comparing actual deposits not insured or collateralized against the capital stock and surplus measure. Values shall be taken from published regulatory agency reports required by either the Comptroller of the Currency or the Commissioner of Banks and Trust Companies. If deposits are maintained with a savings and loan association, the amount of deposits not collateralized or insured shall not exceed 75% of the net worth of the institution as defined and reported to the regulatory agencies. At year-end, $719,000 of the bank balance of the deposits was not covered by federal depository or equivalent insurance, and represents cash at paying agent for debt service payments. Custodial Credit Risk - Investments. For an investment, this is the risk that in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. It is the policy of the Village to require all investments and investment collateral to be held in safekeeping by a third-party custodial institution as designated by the Treasurer in the Village’s name. Direct investments guaranteed by the United States or an agency of the United States do not require collateral. The Village’s investments in the Illinois Funds, IMET, IPRIME, and Illinois trust are not subject to custodial credit risk. Concentration Risk. This is the risk of loss attributed to the magnitude of the Village’s investment in a single issuer. The Village limits the amount that can be invested in commercial paper to one-third of the Village’s total investments. At year-end, the Village does not have any investments over 5 percent of the total cash and investment portfolio (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments).
57
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund The Illinois Police Officers Pension Investment Fund (IPOPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate police pension funds. IPOPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds. Participation in IPOPIF by Illinois suburban and downstate police pension funds is mandatory. Investments of the Fund are combined in a commingled external investment pool and held by IPOPIF. A schedule of investment expenses is included in IPOPIF‘s annual comprehensive financial report. For additional information on IPOPIF’s investments, please refer to their annual comprehensive financial report, which can be obtained from IPOPIF at 456 Fulton Street, Suite 402 Peoria, Illinois 61602 or at www.ipopif.org. Deposits. The Fund retains all its available cash with one financial institution. Available cash is determined to be that amount which is required for the current expenditures of the Fund. The excess of available cash is required to be transferred to IPOPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount of the Fund’s cash on hand totaled $692,715 and the bank balances totaled $692,715. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Fund’s deposits may not be returned to it. The Fund’s investment policy requires securing deposit collateral from depository institutions when deposits are in excess of FDIC limits. The amount of deposits not collateralized or insured by an agency of the federal government shall not exceed 75% of the capital stock and surplus of a banking institution. These values shall be reviewed on a quarterly basis comparing actual deposits not insured or collateralized against the capital stock and surplus measure. Values shall be taken from published regulatory agency reports required by either the Comptroller of the Currency or the Commissioner of Banks and Trust Companies. If deposits are maintained with a savings and loan association, the amount of deposits not collateralized or insured shall not exceed 75% of the net worth of the institution as defined and reported to the regulatory agencies. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. Custodial Credit Risk - Investments. For an investment, this is the risk that in the event of the failure of the counterparty, the Fund will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. It is the policy of the Fund to require all investments and investment collateral to be held in safekeeping by a third-party custodial institution as designated by the Treasurer in the Fund’s name. Direct investments guaranteed by the United States or an agency of the United States do not require collateral. Investments. At year-end the Fund has $114,183,160 invested in IPOPIF. The pooled investments consist of the investments as noted in the target allocation table available at www.ipopif.org. Investments in IPOPIF are valued at IPOPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at year-end. The fund may redeem shares with a seven calendar day notice. IPOPIF may, at its sole discretion and based on circumstances, process redemption requests with fewer than a seven calendar day notice. Regular redemptions of the same amount on a particular day of the month may be arranged with IPOPIF. Additionally, the Fund has $831,653 invested in equities which have average maturities of less than one year. Investment Policy. IPOPIF’s current investment policy was adopted by the Board of Trustees on December 17, 2021. IPOPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IPOPIF shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 3 of the Illinois Pension Code. 58
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Continued Rate of Return. For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 17.79%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Firefighters’ Pension Fund The Illinois Firefighters’ Pension Investment Fund (IFPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate firefighter pension funds. IFPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds. Participation in IFPIF by Illinois suburban and downstate firefighter pension funds is mandatory. Investments of the Fund are combined in a commingled external investment pool and held by IFPIF. A schedule of investment expenses is included in IFPIF’s annual comprehensive financial report. For additional information on IFPIF’s investments, please refer to their annual comprehensive financial report, which can be obtained from IFPIF at 1919 South Highland Avenue, Building A, Suite 237, Lombard, IL 60148 or at www.ifpif.org. Deposits. The Fund retains all its available cash with one financial institution. Available cash is determined to be that amount which is required for the current expenditures of the Fund. The excess of available cash is required to be transferred to IFPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount of the Fund’s cash on hand totaled $148,741 and the bank balances totaled $148,741. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Fund’s deposits may not be returned to it. The Fund’s investment policy requires securing deposit collateral from depository institutions when deposits are in excess of FDIC limits. The amount of deposits not collateralized or insured by an agency of the federal government shall not exceed 75% of the capital stock and surplus of a banking institution. These values shall be reviewed on a quarterly basis comparing actual deposits not insured or collateralized against the capital stock and surplus measure. Values shall be taken from published regulatory agency reports required by either the Comptroller of the Currency or the Commissioner of Banks and Trust Companies. If deposits are maintained with a savings and loan association, the amount of deposits not collateralized or insured shall not exceed 75% of the net worth of the institution as defined and reported to the regulatory agencies. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. Investments. At year-end the Fund has $99,862,059 invested in IFPIF. The pooled investments consist of the investments as noted in the target allocation table available at www.ifpif.org. Investments in IFPIF are valued at IFPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at yearend. The plan may redeem shares by giving notice by 5:00 pm central time on the 1st of each month. Requests properly submitted on or before the 1st of each month will be processed for redemption by the 14th of the month. Expedited redemptions may be processed at the sole discretion of IFPIF. Investment Policy. IFPIF’s current investment policy was adopted by the Board of Trustees on June 17, 2022. IFPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IFPIF shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 4 of the Illinois Pension Code. 59
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters’ Pension Fund - Continued Rate of Return. For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 17.57%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. PROPERTY TAXES Property taxes for 2024 attach as an enforceable lien on January 1, on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by Lake County and are payable in two installments, on or about July 1 and September 1 during the following year. The County collects such taxes and remits them periodically. INTERFUND BALANCES Interfund balances result from the time lag between when transactions are recorded in the accounting system and payments between funds are made. The composition of interfund balances as of the date of this report, is as follows: Receivable Fund
Payable Fund
Police Pension Firefighters' Pension
General General
Amount $
357,790 247,182 604,972
INTERFUND TRANSFERS Interfund transfers for the fiscal year consisted of the following: Transfer In
Transfer Out
General Debt Service Debt Service Debt Service Debt Service Debt Service Facilities Development Street Maintenance Street Maintenance Vehicle Equipment Replacement
Water and Sewerage General Water and Sewerage Nonmajor Governmental Nonmajor Business-Type Internal Service General General Nonmajor Governmental General
Amount $
854,900 1,307,160 2,104,891 1,121,950 175,000 130,625 431,876 3,950,000 1,371,577 1,804,622 13,252,601
60
(1) (1) (2) (2) (2) (2) (3) (3) (1) (3)
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued INTERFUND TRANSFERS - Continued Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) move receipts restricted to debt service from the funds collecting the receipts to the Debt Service Fund as debt service payments become due and 3) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. LEASES RECEIVABLE The Village is a lessor on the following lease at year end: Leases
Start Date
End Date
Payments
Interest Rate
T-Mobile Cell Tower Buffalo Grove Golf WJN Golf LLC District 102 LGFPD
1/1/2022 1/1/2022 5/15/2022 1/1/2025 2/18/2025
8/1/2029 1/1/2037 5/15/2032 12/1/2029 1/18/2030
$3,790 per Month $4,547 per Month $10,417 per Month $7,917 - $8,569 per Month $3,958 - $4,285 per Month
4.00% 1.01% 1.25% 5.00% 1.25%
During the fiscal year, the Village has recognized $358,980 of lease revenue. There were no variable or other payments not previously included in the measurement of the lease receivable recognized in the current year. The future principal and interest lease payments as of the year-end were as follows: Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Governmental Activities Principal Interest $
Business-Type Activities Principal Interest
120,789 129,941 140,178 149,300 4,267 — — — — — —
24,482 18,235 11,130 4,862 19 — — — — — —
224,589 230,530 236,106 216,240 183,024 186,934 66,181 53,793 54,339 54,890 46,798
20,617 16,779 12,819 8,847 6,207 4,020 2,426 1,871 1,325 774 220
544,475
58,728
1,553,424
75,905
61
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the fiscal year was as follows: Beginning Balances
Increases
Decreases
Ending Balances
43,844,430 26,765,968 70,610,398
— 17,065,665 17,065,665
— 21,183,008 21,183,008
43,844,430 22,648,625 66,493,055
36,057,132 20,421,070 3,670,764 44,914,273 38,536,978 714,697 2,633,822 146,948,736
20,425,555 1,983,477 — 4,197,798 — — — 26,606,830
— 56,482,687 200,443 22,204,104 — 3,670,764 — 49,112,071 — 38,536,978 — 714,697 — 2,633,822 200,443 173,355,123
24,452,220 11,425,985 933,687 17,016,410 37,775,062 142,938 270,621 92,016,923
786,927 1,738,885 73,419 847,680 64,272 71,469 202,948 3,785,600
— 200,443 — — — — — 200,443
25,239,147 12,964,427 1,007,106 17,864,090 37,839,334 214,407 473,569 95,602,080
Total Net Depreciable/Amortizable Capital Assets
54,931,813
22,821,230
—
77,753,043
Total Net Capital Assets
125,542,211
39,886,895
Nondepreciable Capital Assets Land Construction in Progress
$
Depreciable/Amortizable Capital Assets Buildings Equipment and Vehicles Land Improvements Streets Storm Sewers Lease Assets - Equipment Subscription Assets - Software Less Accumulated Depreciation/Amortization Buildings Equipment and Vehicles Land Improvements Streets Storm Sewers Lease Assets - Equipment Subscription Assets - Software
Depreciation/amortization expense was charged to governmental activities as follows: General Government Public Safety Public Works Internal Service
$
192,954 1,423,932 1,965,766 202,948 3,785,600
62
21,183,008 144,246,098
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS - Continued Business-Type Activities Business-type capital asset activity for the fiscal year was as follows: Beginning Balances
Increases
Decreases
6,198,514 4,498,511 10,697,025
— 3,709,790 3,709,790
— 962,433 962,433
12,191,669 579,583 2,003,740 99,288,867 874,242 344,632 115,282,733
— 150,378 104,017 3,658,867 — — 3,913,262
— 12,191,669 — 729,961 — 2,107,757 — 102,947,734 — 874,242 — 344,632 — 119,195,995
10,905,573 128,822 1,978,519 49,047,923 291,414 49,234 62,401,485
130,357 38,770 6,017 1,995,566 145,706 24,617 2,341,033
— — — — — — —
11,035,930 167,592 1,984,536 51,043,489 437,120 73,851 64,742,518
Total Net Depreciable/Amortizable Capital Assets
52,881,248
1,572,229
—
54,453,477
Total Net Capital Assets
63,578,273
5,282,019
962,433
67,897,859
Nondepreciable Capital Assets Land Construction in Progress
$
Depreciable/Amortizable Capital Assets Buildings Equipment and Vehicles Land Improvements Infrastructure Lease Asset - Equipment Subscription Asset - Software Less Accumulated Depreciation/Amortization Buildings Equipment and Vehicles Land Improvements Infrastructure Lease Asset - Equipment Subscription Asset - Software
Depreciation/amortization expense was charged to business-type activities as follows: Water and Sewerage Arboretum Golf Buffalo Grove Golf
$ 2,048,528 189,050 103,455 2,341,033
63
Ending Balances 6,198,514 7,245,868 13,444,382
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS General Obligation Bonds Payable The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligation bonds currently outstanding are as follows: Beginning Balances
Issuances
Retirements
Ending Balances
$6,000,000 General Obligation Bonds of 2012, due in annual installments of $100,000 to $750,000 plus interest at 2.00% - 2.75% through June 30, 2030. Debt Service $ 3,970,000
—
470,000
3,500,000
$6,125,000 General Obligation Bonds of 2016, due in annual installments of $300,000 to $730,000 plus interest at 2.00% - 3.00% through December 30, 2031. Debt Service
2,415,000
—
325,000
2,090,000
$1,449,275 General Obligation Refunding Bonds of 2019, due in annual installments of $234,000 to $251,180 plus interest at 1.40% - 1.80% through December 30, 2025. Debt Service
251,180
—
251,180
—
$24,000,000 General Obligation Bonds of 2020, due in annual installments of $1,330,000 to $1,840,000 plus interest at 3.00% - 5.00% through December 30, 2035. Debt Service
17,600,000
—
1,600,000 16,000,000
$19,000,000 General Obligation Bonds of 2022, due in annual installments of $100,000 to $2,580,000 plus interest at 4.00% - 5.00% through December 30, 2042. Debt Service
18,530,000
—
— 18,530,000
Issue
Fund Debt Retired by
64
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued General Obligation Bonds Payable - Continued
Issue
Fund Debt Retired by
Beginning Balances
$24,060,000 General Obligation Bonds of 2025, due in annual installments of $790,000 to $1,235,000 plus interest at Debt Service $ 4.00% - 5.00% through December 30, Street 2045. Maintenance
Issuances
Retirements
Ending Balances
— 16,735,000
— 16,735,000
—
—
7,325,000
42,766,180 24,060,000
7,325,000
2,646,180 64,180,000
Illinois Environmental Protection Agency (IEPA) Loans Payable The Village has entered into loan agreements with the IEPA to provide low interest financing for pump station improvements. IEPA loans currently outstanding are as follows:
Issue
Fund Debt Retired by
$407,307 IEPA Loan Payable of 2013 - Pump Stations Improvements, due in semi-annual installments of $6,788 to $12,916 including Water and interest at 2.30% through December 1, 2033. Sewerage $
Beginning Balances
Issuances
Retirements
Ending Balances
211,365
—
21,399
189,966
Installment Notes Payable The Village also issues installment notes payable to provide funds for the purchase of capital assets. Installment notes currently outstanding are as follows: Beginning Balances
Issuances
Retirements
Ending Balances
$6,970,999 Installment Note Payable of 2015, due in quarterly installments of $21,449 to $227,680 plus interest at 2.35% through Water and June 1, 2029. Sewerage $ 3,528,795
—
676,096
2,852,699
$571,266 Installment Note Payable of 2023, due in annual installments of $53,230 to $58,573, plus interest at 4.00% through Information April 30, 2032. Technology
443,998
—
55,359
388,639
3,972,793
—
731,455
3,241,338
Issue
Fund Debt Retired by
65
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued TIF Revenue Notes Payable TIF revenue notes payable are issued to reimburse developers for qualifying costs incurred in the tax increment financing (TIF) districts and are expected to be repaid solely from tax increment financing revenues. Since these revenues are not determinable, there is no debt service requirement to maturity schedule. None of the TIF notes payable produced a capital asset owned by the Village. Developer notes currently outstanding are as follows:
Issue
Fund Debt Retired by
$19,000,000 Tax Increment Revenue Note of 2022, bearing interest at 6.20% through January 1, 2042.
Lake Cook Road TIF
Beginning Balances
$
Issuances
19,000,000
Retirements
—
—
Ending Balances
19,000,000
Leases Payable The Village has the following leases outstanding at year end: Leases
Start Date
End Date
Payments
Interest Rate
Zoll Equipment Buffalo Grove Golf Course Golf Carts ARBO Golf Carts
5/1/2023 5/15/2023 5/15/2023
5/1/2032 11/15/2028 5/15/2029
$72,493 per Year $10,550 per Month $16,521 per Month
0.32% 3.81% 3.81%
The future principal and interest lease payments as of the year-end were as follows: Fiscal Year 2026 2027 2028 2029 2030 2031 2032
Governmental Activities Principal Interest $
Business-Type Activities Principal Interest
70,902 71,127 71,353 71,580 71,807 72,035 72,265
1,591 1,366 1,140 913 686 458 229
147,253 152,954 158,874 — — — —
15,170 9,471 3,549 — — — —
501,069
6,383
459,081
28,190
66
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued Subscriptions Payable The Village has the following subscriptions payable at year end: Subscription Payable
Start Date
End Date
Payments
Interest Rate
Core and Main Axon Software Axon Tasers Flock Safety
January 1, 2017 May 1, 2023 January 1, 2024 May 1, 2024
January 1, 2037 May 1, 2037 May 1, 2037 May 1, 2030
$25,355 - $37,235 Annually $70,294 - $121,736 Annually $133,660 Annually $45,500 Annually
3.00% 4.00% 5.00% 5.00%
The future principal and interest subscription arrangement payments as of the year-end were as follows: Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Governmental Activities Principal Interest $
Business-Type Activities Principal Interest
163,462 173,163 183,379 194,135 205,460 171,878 182,601 193,908 205,826 218,388 231,625 245,575
94,775 88,237 81,311 73,976 66,209 57,992 51,117 43,812 36,057 27,824 19,088 9,821
18,829 20,225 21,689 23,221 24,826 26,506 28,265 30,105 32,031 34,044 36,150 —
8,877 8,312 7,705 7,054 6,358 5,613 4,818 3,970 3,067 2,106 1,084 —
2,369,400
650,219
295,891
58,964
Asset Retirement Obligation The Village has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various water wells, to seal underground tanks, and lift station at the end of their estimated useful lives in accordance with federal, state, and/or local requirements. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The estimated remaining useful lives of the water wells are 20 years, underground tanks and dams are 45 years, and camera systems are 6 years.
67
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued Long-Term Liabilities Activity Changes in long-term liabilities during the fiscal fiscal year were as follows:
Business-Type Activities Compensated Absences Net Pension Liability - IMRF Total OPEB Liability - RBP IEPA Loans Payable Installment Note Payable Leases Payable Subscriptions Payable Asset Retirement Obligation
Deductions
Ending Balances
2,164,500 5,703,533 28,511,951 19,107,952 10,430,263 42,766,180 4,610,694
7,917 — — — — 24,060,000 1,718,478
— 271,656 9,694,623 8,948,958 436,344 2,646,180 330,582
2,172,417 5,431,877 18,817,328 10,158,994 9,993,919 64,180,000 5,998,590
434,483 — — — 430,227 3,200,000 416,505
443,998 19,000,000 571,747
— — —
55,359 — 70,678
388,639 19,000,000 501,069
57,573 — 70,902
2,523,650
—
154,250
2,369,400
163,462
135,834,468
25,786,395
22,608,630
139,012,233
4,773,152
181,934 1,055,186 635,457 211,365 3,528,795 600,847
— — 994 — — —
16,473 73,383 — 21,399 676,096 141,766
165,461 981,803 636,451 189,966 2,852,699 459,081
33,092 — 27,413 21,893 746,658 147,253
313,388
—
17,497
295,891
18,829
1,725,500
—
50,000
1,675,500
—
8,252,472
994
996,614
7,256,852
995,138
Beginning Balances
Type of Liability Governmental Activities Compensated Absences Net Pension Liability - IMRF Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP General Obligation Bonds Plus: Unamortized Bond Premium Installment Note Payable Internal Service TIF Revenue Note Payable Leases Payable Subscriptions Payable Internal Service
Additions
Amounts Due Within One Year
$
$
For the governmental activities the net pension liabilities and the total OPEB liability are made by the General Fund. Payments on general obligation bonds are being liquidated by the Debt Service Fund, Facilities Fund, and street Maintenance Fund, the installment note payable is made by the Information Technology Fund, the TIF revenue note payable are made by the Lake Cook Road TIF Fund, the leases payable and the subscriptions payable are made by the General Fund and Information Technology Fund. 68
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued Long-Term Liabilities Activity - Continued Additionally, for the business-type activities, the net pension liability is being liquidated by the Water and Sewerage Fund, the Arboretum Golf Fund and the Buffalo Grove Golf Fund. The total OPEB liability is being liquidated by the Water and Sewerage Fund and Buffalo Grove Golf Fund. The IEPA loans payable, installment note payable, and asset retirement obligation are being liquidated by the Water and Sewerage Fund. The leases payable are being liquidated by the Arboretum Golf and the Buffalo Grove Golf Funds. The subscriptions payable are made by the Water and Sewerage Fund. Compensated absences are reported as the net change amount for the fiscal year. Debt Service Requirements to Maturity The annual debt service requirements to maturity, including principal and interest, are as follows: Governmental Activities General Obligation Installment Bonds Payable Note Payable Principal Interest Principal Interest
Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Totals
$
3,200,000 3,315,000 3,385,000 3,555,000 3,760,000 3,875,000 4,040,000 4,200,000 4,375,000 4,585,000 3,635,000 3,820,000 4,885,000 3,450,000 2,095,000 2,180,000 2,265,000 1,140,000 1,185,000 1,235,000
2,738,945 2,606,718 2,467,664 2,325,399 2,205,951 2,073,726 1,920,074 1,751,776 1,576,474 1,393,426 1,200,974 1,019,226 828,224 583,976 411,474 327,676 240,474 149,876 102,850 52,486
57,573 59,876 50,069 52,072 54,155 56,321 58,573 — — — — — — — — — — — — —
2,399 2,495 2,086 2,169 2,256 2,347 2,441 — — — — — — — — — — — — —
64,180,000
25,977,389
388,639
16,193
69
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued Debt Service Requirements to Maturity - Continued Business-Type Activities IEPA Loans Installment Payable Note Payable Principal Interest Principal Interest
Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033
$
21,893 22,398 22,915 23,444 23,985 24,539 25,105 25,687
4,235 3,730 3,213 2,684 2,143 1,589 1,023 441
746,658 822,046 902,537 381,458 — — — —
60,610 42,367 22,304 3,372 — — — —
189,966
19,058
2,852,699
128,653
Legal Debt Margin Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to the incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property…(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum…shall not be included in the foregoing percentage amounts.” To date the Illinois General Assembly has set no limits for home rule municipalities. The Village is a home rule municipality.
70
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued TAX ABATEMENTS The Village has entered into a tax abatement agreement with Woodman’s Food Market, Inc. as an incentive to stimulate economic development. The abatement is authorized through a Development Agreement passed by the Village Board in Ordinance 2016-067 on December 19, 2018. Woodman’s will be financially responsible for constructing all necessary offsite roadway and intersection improvements as required by the Village, County, or State along the public roadways along the perimeter of the property. The offsite improvements are estimated to be $4,000,000. The Village will reimburse Woodman’s an amount not to exceed $4,000,000 for the roadway improvements and an additional payment of $3,000,000 for a combined total of $7,000,000. In order to promote and assist Woodman’s with the project, the Village agrees to share certain sales tax received that corresponds to the new sales tax revenue generated from the retail sales of the project. The sales tax allowable is limited to the sales tax associated with grocery, general merchandise, and products only. Woodman’s must acquire or otherwise be authorized to use the premise in Buffalo Grove, construct and operate the business, and construct the offsite roadway improvements to be eligible for the incentives. As of December 31, 2025, the Village owes Woodman’s Food Market, Inc. $217,762. The Village has entered into a tax abatement agreement with Edward Hines Lumber Co. as an incentive to stimulate economic development. The abatement is authorized through Village Ordinance 2000-67 on November 20, 2000 and has since been amended with Village Ordinance 2003-18 on March 3, 2003, Ordinance 2009-47 on August 3 2009 and Ordinance 2020-060 on August 17, 2020. Edward Hines Lumber Co. shall maintain a single order-acceptance point policy for all credit sales and shall not relocate the single order-acceptance point outside of the Village unless it violates or contravenes any state or federal law or court decision/determination. The Village will remit 60 percent of the municipal sales tax resulting from the credit sales received by the Village to Edward Hines Lumber Co. The Village will keep the remaining 40 percent. The Village’s incentive payments for the year ended December 31, 2025 were $1,821,725. The Village has entered into a tax abatement agreement with LAB Development, LLC as an incentive to stimulate economic development. The abatement is authorized through Village Ordinance 2011-14 on March 21, 2011 and has since been amended with Village Ordinance 2016-032 on May 10, 2016. LAB Development, LLC shall conduct its business in Buffalo Grove, maintain a single order-acceptance point on premise. The amendment to the original agreement in 2016 requires LAB Development, LLC to extend their current lease at the premise in Buffalo Grove and expand the operation from 61,416 square feet to 124,605 square feet. The lease extension must be no less than 8.5 years, commencing January 1, 2016. The original agreement provided LAB Development, LLC with a tax abatement of 100 percent of the municipal sales tax in year one of the agreement, this percentage decreases 10 percent per year until year seven of the agreement. The amount of municipal sales tax abated to LAB Development, LLC could not exceed $500,000 over the seven-year term. The amended agreement extended the abatements to LAB Development, LLC under new terms. LAB Development, LLC is entitled to 80 percent of the base municipal sales tax above $162,207 in year one. The percentage per year decreases 10 percent until year five, from year five to year eight and a half the percentage is fixed at 50 percent. The base municipal sales tax amount of $162,207 is fixed for the term of the contract and prorated for the half year in 2024. The amount of municipal sales tax to be abated is not to exceed $2,600,000 over the life of the amended agreement. If LAB Development, LLC relocates or ceases business operations on the premise within five years of the commencement date of the amended contract they shall reimburse the Village 100 percent of the municipal sales tax payments to the Village within ninety days. IF LAB Development, LLC relocates or ceases business operations on the premise after the fifth year they will remit $750,000 to the Village within ninety days. If LAB Development, LLC relocates or ceases business operations on the premise after the sixth year they will remit $375,000 to the Village within ninety days. If LAB Development, LLC relocates or ceases business operations on the premise after the seventh year they will remit $187,500 to the Village within ninety days. If LAB Development, LLC conducts less than $30,000,000 of taxable sales at the premise in any given year of the contract they shall not receive more than 50 percent of the municipal sales tax increment for that year. The Village’s incentive payments for the year ended December 31, 2025, were $202,652. 71
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued TAX ABATEMENTS - Continued The Village has entered into a tax abatement agreement with Zonatherm. In order to encourage Zonatherm to maintain its business operation in the Village, and to assist with their project in the Village, the Village agrees to share home rule sales tax received by the Village using a formula which corresponds to new sales tax generated by Zonatherm over a finite period of time. For the fist sales tax year, 100 percent of that year’s incremental municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the second sales tax year 90 percent of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the third sales tax year 80 percent of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the fourth sales tax year 70 percent of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the fifth sales tax year 60 percent of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the sixth sales tax year 50 percent of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the seventh sales tax year 50 percent of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. The entire distribution cannot exceed $500,000 in aggregate. This agreement will end upon the completion of the seventh year or the $500,000 cap. In the event that Zonatherm ceases the business with seven years or generate less than $1,000 in sales tax in any sales tax year, Zonatherm shall reimburse the Village 100 percent of the municipal sales tax payments received. The Village had no incentive payments for the year ended December 31, 2025. In order to encourage BITS to relocate its business operation to the Village of Buffalo Grove, and to assist with their project in the Village, the Village agrees to share a portion of its home rule sales tax received by the Village using a formula which corresponds to new sales tax revenue generated by the business over a finite period of time. For the first sales tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales tax for annual taxable sales greater than $40,000,000. For the second sales tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales greater than $40,000,000. For the third sales tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales greater than $40,000,000. For the fourth sales tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales greater than $40,000,000. For the fifth sales tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales greater than $40,000,000. For the sixth sales tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales greater than $40,000,000. Should BITS relocate or cease its business within the first two years of the agreement BITS shall reimburse the Village 85 percent of the total home rule sales tax distributed. Should BITS relocate or cease business after two years of this agreement than BITS agrees to reimburse the Village 75 percent of the total home rules sales tax payments received. Should BITS relocate or cease business after three years of this agreement than BITS agrees to reimburse the Village 55 percent of the total home rules sales tax payments received. Should BITS relocate or cease business after four years of this agreement than BITS agrees to reimburse the Village 40 percent of the total home rules sales tax payments received. Should BITS relocate or cease business after five years of this agreement than BITS agrees to reimburse the Village 35 percent of the total home rules sales tax payments received. The Village's incentive payments for the year ended December 31, 2025 were $910,170.
72
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued FUND BALANCE CLASSIFICATIONS In the governmental fund financial statements, the Village considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The Village first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available. The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: Capital Projects
Special Revenue Lake Cook Road TIF
Debt Service
161,936 1,850 163,786
— — —
— — —
— — —
— — —
— — —
773,229 795,968 — — — — — 1,569,197
— — — — 1,814,180 — — 1,814,180
— — — — — 16,498 — 16,498
— — — — — — 13,166,005 13,166,005
— — — — — — 3,983,042 3,983,042
— — — — — — — —
— 773,229 — 795,968 5,992,288 5,992,288 22,047 22,047 231,061 2,045,241 — 16,498 — 17,149,047 6,245,396 26,794,318
Committed Capital Projects
38,010,415
—
—
1,860,137
1,229,558
17,745
— 41,117,855
Unassigned
20,394,591
—
—
—
—
—
— 20,394,591
Total Fund Balances
60,137,989
1,814,180
16,498
15,026,142
5,212,600
17,745
6,245,396 88,470,550
General Fund Balances Nonspendable Inventories Prepaids
Restricted IMRF Seizure Funds Motor Fuel Tax Metra Parking Lot TIF Debt Service Capital Projects
$
Vehicle Facilities Street Equipment Development Maintenance Replacement Nonmajor
— — —
Totals
161,936 1,850 163,786
Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not in a spendable form; or b) legally or contractually required to be maintained intact. Restricted Fund Balance. Consists of resources that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific purposes by the government itself, using its highest level of decision-making authority, the Board of Trustees; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint.
73
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued FUND BALANCE CLASSIFICATIONS - Continued Assigned Fund Balance. Consists of amounts that are constrained by the Board of Trustees’ intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by a) the Board of Trustees itself or b) a body or official to which the Board of Trustees has delegated the authority to assign amounts to be used for specific purposes. The Village’s highest level of decision-making authority is the Board of Trustees, who is authorized to assign amounts to a specific purpose. Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds. Minimum Fund Balance Policy. The Village's fund balance policy for the General Fund requires unassigned fund balance to be maintained at a minimum of 25% of budgeted operating expenditures. NET POSITION CLASSIFICATIONS Net investment in capital assets was comprised of the following as of December 31, 2025: Governmental Activities Capital Assets - Net of Accumulated Depreciation/Amortization $ 144,246,098 Plus: Unspent Bond Proceeds
17,149,047
Less Capital Related Debt: Capital Related Accounts Payable General Obligation Bonds Payable Unamortized Bond Premium Installment Note Payable Leases Payable Subscriptions Payable
(4,370,947) (64,180,000) (5,998,590) (388,639) (501,069) (2,369,400)
Net Investment in Capital Assets
83,586,500
Business-Type Activities Capital Assets - Net of Accumulated Depreciation/Amortization $
67,897,859
Less Capital Related Debt: Capital Related Accounts Payable IEPA Loans Payable Installment Note Payable Leases Payable Subscriptions Payable
(2,295,302) (189,966) (2,852,699) (459,081) (295,891)
Net Investment in Capital Assets
61,804,920
74
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the Village’s employees. The Village has purchased insurance from private insurance companies. Risks covered included certain types of liabilities and bonds. Premiums have been displayed as expenditures/expenses in appropriate funds. There were no significant changes in insurance coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. CONTINGENT LIABILITIES Litigation From time to time, the Village is party to various pending claims and legal proceedings with respect to employment, civil rights, property taxes and other matters. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the Village attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the Village's financial position or results of operations. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. JOINT VENTURES Northwest Water Commission (NWWC) The Village is a member of the Northwest Water Commission (NWWC) which consists of four municipalities. NWWC is a municipal corporation and public body politic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). NWWC is empowered under the Act to plan, construct, improve, extend, acquire, finance, operate and maintain a water supply system to serve its members and other potential water purchasers. The four members of NWWC and their percentage shares as of December 31, 2024 are as follows: Percent Share Village of Arlington Heights Village of Buffalo Grove Village of Palatine Village of Wheeling
37.45% 17.67% 29.10% 15.78% 100.00%
75
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES - Continued Northwest Water Commission (NWWC) - Continued These percentage shares are based upon formula contained in the water supply agreement and are subject to change in future years based on consumption by the municipalities. The members form a contiguous geographic service area which is located northwest of downtown Chicago. Under the NWWC Agreement, additional members may join NWWC upon the approval of each member. NWWC is governed by a Board of Commissioners which consists of one Village Manager from each member municipality. Each Commissioner has an equal vote. The officers of NWWC are appointed by the Board of Commissioners. The Board of Commissioners determines the general policy of NWWC, makes all appropriations, approves contracts for sale or purchase of water, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the NWWC Agreement or the by-laws. Summary of financial positions as of December 31, 2024: Current Assets
$
Noncurrent Assets Capital Assets Total Assets
29,756,932
Current Liabilities
$
1,889,327
Noncurrent Liabilities
149,972
Total Liabilities
2,039,299
Net Position
55,602,476
27,884,843 57,641,775
Summary of revenues, expenses and changes in net position for the for the year ended December 31, 2024: Operating Revenues
$
12,813,369
Operating Expenses
13,324,475
Operating (Loss)
(511,106)
Nonoperating Revenue (Expenses)
1,560,106
Change in Net Position
1,049,000
Net Position - Beginning
54,553,476
Net Position - Ending
55,602,476
76
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 – OTHER INFORMATION – Continued JOINT VENTURES – Continued Northwest Water Commission (NWWC) – Continued Complete financial statements can be obtained from the Northwest Water Commission, 1525 North Wolf Road, Des Plaines, Illinois 60015. NWWC’s bonds are revenue obligations. They are limited obligations of NWWC with a claim for payment solely from and secured by a pledge of the revenues of the system and amounts in various funds and accounts established by NWWC resolutions. The bonds are not a debt of any member. NWWC has no power to levy taxes. Revenues of the system consist of: (a) all receipts derived from Water Supply Contracts or any other contract for the supply of water; (b) all income derived from the investment of monies; and (c) all income, fees, water service charges, and all rates, rents and receipts derived by NWWC from the ownership and operation of the system and the sale of water. NWWC covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. NWWC has entered into Water Supply Contracts with the four-member municipalities for a term of 40 years, extending to 2030. The Water Supply Contracts are irrevocable and may not be terminated or amended except as provided in the Water Supply Contract. Each member is obligated, on a “take or pay” basis, to purchase or in any event to pay for a minimum annual quantity of water. NWWC has entered into an agreement with the City of Evanston under which the City has agreed to sell quantities of lake water sufficient to supply the projected water needs of NWWC through the year 2030. The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable, without regard to performance or nonperformance by NWWC of its obligations under this Contract. The payments required to be made by the Village under this Contract are required to be made solely from revenues to be derived by the Village from the operation of the Village’s system. Members are not prohibited by the Contract from using other available funds to make payments required under the Contract. This Contract shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. The obligation of the Village to make payments required by this Agreement from revenues of the Waterworks and Sewerage System shall be payable from the operation and maintenance account of the Water and Sewerage Fund. In accordance with the joint venture agreement, the Village remitted $2,181,522 to NWWC for the year ended December 31, 2025. All payments were paid from the Water and Sewerage Fund. The Village’s share of net position of NWWC was $9,824,958 at December 31, 2025. Solid Waste Agency of Northern Cook County (SWANCC) The Village is a member of the Solid Waste Agency of Northern Cook County (SWANCC) which consists of twenty-three municipalities. SWANCC is a municipal corporation and public body politic established pursuant to the Constitution Act of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended.
77
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 – OTHER INFORMATION – Continued JOINT VENTURES – Continued Solid Waste Agency of Northern Cook County (SWANCC) – Continued SWANCC is empowered to plan, construct, finance, operate, and maintain a solid waste disposal system to serve its members. SWANCC is governed by a Board of Directors which consists of one appointed representative from each member municipality. Each Director has an equal vote. The officers of SWANCC are appointed by the Board of Directors. The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves contracts, adopts resolutions providing for the issuance of bonds or notes by SWANCC, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the SWANCC agreement or the by-laws. Separate audited financial statements are available at 77 W Hintz Road, Suite 200, Wheeling, Illinois 60090. SWANCC’s bonds are revenue obligations. They are limited obligations of SWANCC, with a claim for payment solely from and secured by a pledge of the revenues of the system, and amounts in various funds and accounts established by SWANCC resolutions. SWANCC has no power to levy taxes. Revenues of the system consist of: (a) all receipts derived from Solid Waste Disposal Contracts or any other contracts for the disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees, service charges, and all grants, rents, and receipts derived by SWANCC from the ownership and operation of the system. SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. SWANCC has entered into Solid Waste Disposal Contracts with the member municipalities. The Contracts are irrevocable, and may not be terminated or amended, except as provided in the Contract. Each member is obligated, on a “take or pay” basis, to purchase or in any event to pay for a minimum annual cost of the system. The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable, without regard to performance or nonperformance by SWANCC of its obligations under this Contract. The payments required to be made by the Village under this Contract are required to be made solely from revenues to be derived by the Village from the operation of the Municipal Waste System Fund. The Village is not prohibited by the Contract from using any other funds to make the payments required by the Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. In accordance with the joint venture agreement, the Village remitted $857,770 to SWANCC for the year ended December 31, 2025, which is recorded in the Village’s Refuse Service Fund.
78
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent multiple-employer public employee retirement system and the Police Pension Plan which is a single-employer pension plan, and the Firefighters’ Pension Plan which is a single-employer pension plan. A separate report is issued for the Police Pension Plan and Firefighters’ Pension Plan and may be obtained by writing to the Village at 50 Raupp Boulevard, Buffalo Grove, Illinois 60089. IMRF issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained online at www.imrf.org. The benefits, benefit levels, employee contributions, and employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. The aggregate amounts recognized for the pension plans are: Pension Expense IMRF Police Pension Firefighters' Pension
$
Net Pension Liability
Deferred Outflows
Deferred Inflows
3,133,161 2,498,518 2,213,366
6,413,680 18,817,328 10,158,994
3,727,121 4,053,034 4,883,161
12,089 9,841,313 9,633,989
7,845,045
35,390,002
12,663,316
19,487,391
Illinois Municipal Retirement Fund (IMRF) Plan Descriptions Plan Administration. All employees (other than those covered by the Police and Firefighters’ Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources’ measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date.). IMRF provides two tiers of pension benefits. Employees hired before January 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement.
79
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Benefits Provided - Continued. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: •
3% of the original pension amount, or
•
1/2 of the increase in the Consumer Price Index of the original pension amount.
Plan Membership. As of December 31, 2024, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits Inactive Plan Members Entitled to but not yet Receiving Benefits Active Plan Members
134 74 104
Total
312
Contributions. As set by statute, the Village’s Regular Plan Members are required to contribute 4.50% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. For the fiscal year-ended December 31, 2025, the Village’s contribution was 9.94% of covered payroll. Net Pension Liability. The Village’s net pension liability was measured as of December 31, 2024. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.
80
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Actuarial Assumptions. The total pension liabilities were determined by an actuarial valuation performed, as of December 31, 2024, using the following actuarial methods and assumptions: Actuarial Cost Method
Entry Age Normal
Asset Valuation Method
Fair Value
Actuarial Assumptions Interest Rate
7.25%
Salary Increases
2.85% to 13.75%
Cost of Living Adjustments
2.75%
Inflation
2.25%
For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 108.0%) and Female (adjusted 106.4%) tables, and future mortality improvements projected using scale MP-2021. For disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2021. For active members, the Pub-2010, Amount-Weighted, below-median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2021. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation.
81
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Actuarial Assumptions - Continued. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Long-Term Expected Real Rate of Return
Fixed Income Domestic Equities International Equities Real Estate Blended Cash and Cash Equivalents
24.50% 33.50% 18.00% 10.50% 12.50% 1.00%
5.20% 4.35% 5.40% 6.40% 4.85% - 6.25% 3.60%
Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate as well as what the Village’s net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease (6.25%) Net Pension Liability/(Asset)
$
15,747,303
82
Current Discount Rate (7.25%) 6,413,680
1% Increase (8.25%) (1,064,029)
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Changes in the Net Pension Liability Total Pension Liability (A) Balances at December 31, 2023
$
Plan Fiduciary Net Position (B)
Net Pension Liability (A) - (B)
80,804,377
74,045,658
6,758,719
862,596 5,722,054 —
— — —
862,596 5,722,054 —
Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Experience of the Total Pension Liability Changes of Assumptions Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer)
550,246 — — — —
— — 1,001,794 462,694 7,321,767
550,246 — (1,001,794) (462,694) (7,321,767)
(4,621,595) —
(4,621,595) (1,306,320)
— 1,306,320
Net Changes
2,513,301
2,858,340
(345,039)
Balances at December 31, 2024
83,317,678
76,903,998
6,413,680
83
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the fiscal year ended December 31, 2025, the Village recognized pension expense of $3,133,161. At December 31, 2025, the Village reported deferred outflows or resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Pension Expense to be Recognized in Future Periods Pension Contributions Made Subsequent to the Measurement Date Total Deferred Amounts Related to IMRF
$
Deferred Inflows of Resources
Totals
886,820 —
— (12,089)
886,820 (12,089)
1,749,456 2,636,276
— (12,089)
1,749,456 2,624,187
1,090,845
—
1,090,845
3,727,121
(12,089)
3,715,032
$1,090,845 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the reporting year ended December 31, 2026. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Outflows/ (Inflows) of Resources
Fiscal Year 2026 2027 2028 2029 2030 Thereafter
$
Totals
1,360,364 2,561,537 (874,662) (423,052) — — 2,624,187
84
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan Plan Descriptions Plan Administration. The Police Pension Plan is a single-employer defined benefit pension plan that covers all sworn police personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is governed by a five-member pension board. Two members of the Board are appointed by the Village Mayor, one member is elected by pension beneficiaries and two members are elected by active police employees. Plan Membership. At December 31, 2025, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits Inactive Plan Members Entitled to but not yet Receiving Benefits Active Plan Members
74 9 59
Total
142
Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of ½ of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Police officer salary for the pension purposes was capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., ½ percent for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent or ½ of the change in the Consumer Price Index for the preceding calendar year. 85
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Plan Descriptions - Continued Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the fiscal year-ended December 31, 2025, the Village’s contribution was 45.36% of covered payroll. Concentrations. At year-end, the Pension Fund does not have any investments over 5 percent of net plan position available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2025, using the following actuarial methods and assumptions: Actuarial Cost Method
Entry Age Normal (Level %)
Asset Valuation Method
Fair Value
Actuarial Assumptions Interest Rate
7.00%
Salary Increases
4.00% - 8.67%
Cost of Living Adjustments
2.50%
Inflation
2.50%
Mortality rates are based on Sex Distinct Raw Rates as developed in the PubS-2010(A) Study. Mortality improvement uses MP-2021 Improvement Rates applied on a generational basis. Discount Rate The discount rate used to measure the total pension liability was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 86
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate as well as what the Village’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease (5.27%) Net Pension Liability
$
32,535,145
Current Rate (7.00%)
1% Increase (7.27%)
18,817,328
421,604
Changes in the Net Pension Liability
Balances at December 31, 2024
$
Total Pension Liability (A)
Plan Fiduciary Net Position (B)
Net Pension Liability (A) - (B)
129,638,703
101,126,752
28,511,951
1,780,384 8,929,351 —
— — —
1,780,384 8,929,351 —
Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Experience of the Total Pension Liability Changes of Assumptions Contributions - Employer Contributions - Employees Contributions - Other Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer) Prior Period Adjustment
1,352,948 — — — — —
— — 3,406,430 744,504 8,352 17,669,774
1,352,948 — (3,406,430) (744,504) (8,352) (17,669,774)
(6,827,900) — —
(6,827,900) (71,754) —
— 71,754 —
Net Changes
5,234,783
14,929,406
(9,694,623)
134,873,486
116,056,158
18,817,328
Balances at December 31, 2025
87
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the fiscal year ended December 31, 2025, the Village recognized pension expense of $2,498,518. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments
$
Total Deferred Amounts Related to Police Pension
Deferred Inflows of Resources
Totals
3,937,590 115,444
(1,121,029) (361,897)
2,816,561 (246,453)
—
(8,358,387)
(8,358,387)
4,053,034
(9,841,313)
(5,788,279)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Outflows/ (Inflows) of Resources
Fiscal Year 2026 2027 2028 2029 2030 Thereafter
$
Total
603,717 (2,612,146) (1,829,100) (1,950,750) — — (5,788,279)
88
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters’ Pension Plan Plan Descriptions Plan Administration. The Firefighters’ Pension Plan is a single-employer defined benefit pension plan that covers all sworn firefighter personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-101) and may be amended only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is governed by a five-member pension board. Two members of the Board are appointed by the Village President, one member is elected by retired and disabled members, and two members are elected by active fire employees. Plan Membership. At December 31, 2025, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits Inactive Plan Members Entitled to but not yet Receiving Benefits Active Plan Members
57 1 55
Total
113
Benefits Provided. The following is a summary of the Firefighters’ Pension Plan as provided for in Illinois State Statutes. The Firefighters’ Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of ½ of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least ten years but less than 20 years of creditable service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Firefighters’ salary for the pension purposes was capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., ½ percent for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent or ½ of the change in the Consumer Price Index for the proceeding calendar year. 89
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters’ Pension Plan - Continued Plan Descriptions - Continued Contributions. Covered employees are required to contribute 9.455% of their base salary to the Firefighters’ Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the fiscal year-ended December 31, 2025, the Village’s contribution was 34.42% of covered payroll. Concentrations. At year end, the Pension Plan had no investments (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) in any one organization that represent 5 percent or more of net plan position available for benefits. Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2025, using the following actuarial methods and assumptions: Actuarial Cost Method
Entry Age Normal (Level %)
Asset Valuation Method
Fair Value
Actuarial Assumptions Interest Rate
7.00%
Salary Increases
4.00% - 9.73%
Cost of Living Adjustments
2.50%
Inflation
2.50%
Mortality rates are based on Sex Distinct Raw Rates as developed in the PubS-2010(A) Study. Mortality improvement uses MP-2021 Improvement Rates applied on a generational basis. Discount Rate The discount rate used to measure the total pension liability was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 90
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters’ Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate as well as what the Village’s net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease (6.00%) Net Pension Liability/(Asset)
$
25,037,500
Current Rate (7.00%)
1% Increase (8.00%)
10,158,994
(2,070,744)
Changes in the Net Pension Liability
Balances at December 31, 2024
$
Total Pension Liability (A)
Plan Fiduciary Net Position (B)
Net Pension Liability (A) - (B)
106,569,989
87,462,037
19,107,952
1,600,400 7,294,178 —
— — —
1,600,400 7,294,178 —
Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Experience of the Total Pension Liability Changes of Assumptions Contributions - Employer Contributions - Employees Contributions - Other Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer)
265,691 — — — — —
— — 2,343,742 646,519 — 15,220,860
265,691 — (2,343,742) (646,519) — (15,220,860)
(5,316,713) —
(5,316,713) (101,894)
— 101,894
Net Changes
3,843,556
12,792,514
(8,948,958)
110,413,545
100,254,551
10,158,994
Balances at December 31, 2025
91
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters’ Pension Plan - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the fiscal year ended December 31, 2025, the Village recognized pension expense of $2,213,366. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments
$
Total Deferred Amounts Related to Firefighters' Pension
Deferred Inflows of Resources
Totals
2,603,958 2,279,203
(1,718,311) (108,175)
885,647 2,171,028
—
(7,807,503)
(7,807,503)
4,883,161
(9,633,989)
(4,750,828)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Outflows/ (Inflows) of Resources
Fiscal Year 2026 2027 2028 2029 2030 Thereafter
$
Total
922,512 (3,052,603) (2,048,935) (1,242,834) 557,249 113,783 (4,750,828)
92
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS General Information about the OPEB Plan Plan Description. The Village’s defined benefit OPEB plan, Village of Buffalo Grove Retiree Benefits Plan (RBP), provides OPEB for all permanent full-time general and public safety employees of the Village. RBP is a single-employer defined benefit OPEB plan administered by the Village. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the Village Board. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. There are no separately issued financial statements. Benefits Provided. RBP offers medical, prescription, vision, dental, life insurance coverage to retirees. Retirees pay full cost of coverage. Coverage ends at age 65 or once retirees are eligible for Medicare. Plan Membership. As of December 31, 2025, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits Inactive Plan Members Entitled to but not yet Receiving Benefits Active Plan Members
58 — 207
Total
265
Total OPEB Liability The Village’s total OPEB liability was measured as of December 31, 2025, and was determined by an actuarial valuation as of December 31, 2024. Actuarial Assumptions and Other Inputs. The net OPEB liability in the December 31, 2024 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation
2.50%
Salary Increases
3.00%
Discount Rate
4.83%
Healthcare Cost Trend Rates
7.58% initial trend 2025 PPO and 7.49% initial trend 2025 HMO decreasing to an ultimate rate of 5.00% by 2034
Retirees' Share of Benefit-Related Costs
100% of Benefit-Related costs
The discount rate was based on a combination of the expected long-term rate of return on plan investments an the Municipal Bond Rate.
93
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued Total OPEB Liability - Continued Mortality rates for IMRF are based on PubG-2010(B) Improved Generationally using MP-2021 Improvement Rates, weighted per IMRF Experience Study Report dated January 4, 2024 and for police and fire are based on Active Mortality follows the Sex Distinct Raw Rates as developed in the PubS-2010(A) Study improved to 2021 using MP-2021 Improvement Rates.These rates are then improved generationally using MP-2021 Improvement Rates. Changes in the Net OPEB Liability Total OPEB Liability Balance at December 31, 2024
$ 11,065,720
Changes for the Year: Service Cost Interest on the Total OPEB Liability Changes of Benefit Terms Difference Between Expected and Actual Experience Changes of Assumptions or Other Inputs Benefit Payments Other Changes Net Changes
591,609 442,145 — — (1,011,464) (457,640) — (435,350)
Balance at December 31, 2025
10,630,370
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The discount rate used to measure the total pension liability was 4.83%, while the prior valuation used 4.08%. The following presents the total OPEB liability, calculated using the discount rate, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher:
Total OPEB Liability
$
1% Decrease (3.83%)
Current Discount (4.83%)
1% Increase (5.83%)
12,013,041
10,630,370
9,485,105
94
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, calculated using a variable Healthcare Trend Rate, as well as what the total OPEB liability would be if it were calculated using a Healthcare Trend Rate that is one percentage point lower or one percentage point higher:
Total OPEB Liability
$
1% Decrease (Varies)
Healthcare Cost Trend Rates (Varies)
1% Increase (Varies)
9,145,621
10,630,370
12,507,300
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended December 31, 2025, the Village recognized OPEB expense of $933,049. At December 31, 2025, the Village and reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on OPEB Plan Investments
$
Total Deferred Amounts Related to OPEB
95
Deferred Outflows of Resources
Deferred Inflows of Resources
Totals
601,951 2,210,652
(3,515,147) (2,819,195)
(2,913,196) (608,543)
—
—
—
2,812,603
(6,334,342)
(3,521,739)
VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2025
NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Continued Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Net Deferred (Inflows) of Resources
Fiscal Year 2026 2027 2028 2029 2030 Thereafter
$
Total
(100,705) (80,034) (78,864) (449,481) (605,996) (2,206,659) (3,521,739)
96
REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information includes financial information and disclosures that are required by the GASB but are not considered a part of the basic financial statements. Such information includes: •
Schedule Employer Contributions - Last Ten Fiscal Years Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund
•
Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund
•
Schedule of Investment Returns - Last Ten Fiscal Years Police Pension Fund Firefighters' Pension Fund
•
Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefits Plan
•
Budgetary Comparison Schedules General Fund Lake Cook Road TIF - Special Revenue Fund
Notes to the Required Supplementary Information Budgetary Information - Budgets are adopted on a basis consistent with generally accepted accounting principles.
97
VILLAGE OF BUFFALO GROVE, ILLINOIS Illinois Municipal Retirement Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2025
Fiscal Year
Actuarially Determined Contribution
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$ 1,112,901 1,164,635 1,218,342 1,045,988 1,212,986 1,129,458 1,054,873 932,160 1,001,794 1,090,845
Contributions in Relation to the Actuarially Determined Contribution $
1,112,901 1,164,635 1,218,342 1,053,229 1,212,986 1,140,015 1,054,873 932,160 1,001,794 1,090,845
Contribution Excess/ (Deficiency) $
— — — 7,241 — 10,557 — — — —
Covered Payroll $
8,023,803 8,384,700 8,758,756 9,272,947 8,899,385 8,517,782 9,016,005 9,832,907 10,446,242 10,975,998
Contributions as a Percentage of Covered Payroll 13.87% 13.89% 13.91% 11.36% 13.63% 13.38% 11.70% 9.48% 9.59% 9.94%
Notes to the Required Supplementary Information: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age
Mortality
Aggregate Entry Age Normal Level % Pay (Closed) 19 Years 5-Year Smoothed Fair Value 2.25% 2.75% to 13.75%, Including Inflation 7.25% Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 2020 valuation pursuant to an experience study of the period 2017-2019. For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020. For disabled retirees, the Pub-2010, Amount-Weighted, belowmedian income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-Weighted, belowmedian income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020.
98
VILLAGE OF BUFFALO GROVE, ILLINOIS Police Pension Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2025
Fiscal Year
Actuarially Determined Contribution
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$ 2,407,865 2,538,183 2,673,256 2,795,672 3,034,524 3,361,940 3,394,077 2,775,930 3,020,850 3,165,550
Contributions in Relation to the Actuarially Determined Contribution $
2,430,017 2,641,453 2,668,632 2,899,820 3,095,593 3,333,876 3,374,694 3,795,905 3,401,081 3,406,430
Contribution Excess/ (Deficiency) $
22,152 103,270 (4,624) 104,148 61,069 (28,064) (19,383) 1,019,975 380,231 240,880
Covered Payroll $
6,406,672 6,565,793 6,738,022 6,957,008 7,316,636 6,594,984 6,994,975 7,127,249 7,114,133 7,509,085
Contributions as a Percentage of Covered Payroll 37.93% 40.23% 39.61% 41.68% 42.31% 50.55% 48.24% 53.26% 47.81% 45.36%
Notes to the Required Supplementary Information: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age Mortality
Entry Age Normal Level % Pay (Closed) 100% Funded over 17 Years 5-Year Smoothed Fair Value 2.25% 3.75% - 8.42% 7.00% Graded by Age (22% at 50 to 100% at age 65) Pub-2010 Adjusted for Plan Status, Demographics, and Illinois Public Pension Data, as Described
99
VILLAGE OF BUFFALO GROVE, ILLINOIS Firefighters' Pension Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2025
Fiscal Year
Actuarially Determined Contribution
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$ 1,728,496 1,862,674 1,897,942 1,859,212 1,984,773 2,390,386 2,424,085 1,872,940 2,221,220 2,275,342
Contributions in Relation to the Actuarially Determined Contribution $
2,166,040 1,864,498 1,897,968 1,915,164 2,019,305 2,370,805 2,410,584 2,027,065 2,341,392 2,343,742
Contribution Excess/ (Deficiency) $
437,544 1,824 26 55,952 34,532 (19,581) (13,501) 154,125 120,172 68,400
Covered Payroll $
5,390,509 5,585,881 5,836,466 6,026,152 5,890,818 5,846,393 6,114,396 6,346,072 6,573,240 6,809,622
Contributions as a Percentage of Covered Payroll 40.18% 33.38% 32.52% 31.78% 34.28% 40.55% 39.42% 31.94% 35.62% 34.42%
Notes to the Required Supplementary Information: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age Mortality
Entry Age Normal Level % Pay (Closed) 100% Funded over 17 Years 5-Year Smoothed Fair Value 2.25% 3.75% - 9.48% 7.00% Graded by Age (15% at 50 to 100% at age 65) Pub-2010 Adjusted for Plan Status, Demographics, and Illinois Public Pension Data, as Described
100
VILLAGE OF BUFFALO GROVE, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years December 31, 2025
Total Pension Liability Service Cost Interest Differences Between Expected and Actual Experience Change of Assumptions Benefit Payments, Including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning
$
Total Pension Liability - Ending Plan Fiduciary Net Position Contributions - Employer Contributions - Members Net Investment Income Benefit Payments, Including Refunds of Member Contributions Other (Net Transfer) Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning
$
Plan Net Position - Ending Employer's Net Pension Liability/(Asset)
$
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll
$
Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll
12/31/2015
12/31/2016
12/31/2017
860,654 4,031,299 1,338,146 145,117
871,953 4,310,485 (921,372) (220,386)
858,070 4,434,597 40,460 (1,963,662)
(2,416,367) 3,958,849 54,600,269
(2,582,301) 1,458,379 58,559,118
(2,637,150) 732,315 60,017,497
58,559,118
60,017,497
60,749,812
1,093,142 402,168 241,715
1,112,901 428,936 3,350,903
1,164,635 377,312 8,949,122
(2,416,367) 520,582 (158,760) 48,803,503
(2,582,301) (346,357) 1,964,082 48,644,743
(2,637,150) (974,388) 6,879,531 50,608,825
48,644,743
50,608,825
57,488,356
9,914,375
9,408,672
3,261,456
83.07%
84.32%
94.63%
8,157,772
8,023,803
8,384,700
121.53%
117.26%
38.90%
Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2015 through 2018 and 2020. Changes in assumptions related to the demographics were made in 2017.
101
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
843,915 4,483,157 582,645 1,849,878
908,935 4,689,245 492,814 —
941,942 4,904,123 980,313 (738,149)
785,687 5,082,733 1,307,006 —
763,454 5,316,538 915,422 —
841,833 5,521,164 903,021 (27,155)
862,596 5,722,054 550,246 —
(2,792,678) 4,966,917 60,749,812
(2,983,908) 3,107,086 65,716,729
(3,303,412) 2,784,817 68,823,815
(3,789,614) 3,385,812 71,608,632
(4,089,234) 2,906,180 74,994,444
(4,335,110) 2,903,753 77,900,624
(4,621,595) 2,513,301 80,804,377
65,716,729
68,823,815
71,608,632
74,994,444
77,900,624
80,804,377
83,317,678
1,218,342 394,144 (2,997,666)
1,053,229 421,491 10,038,062
1,212,986 400,474 8,789,950
1,140,015 383,301 12,021,830
1,054,873 422,799 (10,239,835)
932,160 444,911 7,471,162
1,001,794 462,694 7,321,767
(2,792,678) 938,575 (3,239,283) 57,488,356
(2,983,908) 58,920 8,587,794 54,249,073
(3,303,412) 872,831 7,972,829 62,836,867
(3,789,614) 289,920 10,045,452 70,809,696
(4,089,234) (375,979) (13,227,376) 80,855,148
(4,335,110) 1,904,763 6,417,886 67,627,772
(4,621,595) (1,306,320) 2,858,340 74,045,658
54,249,073
62,836,867
70,809,696
80,855,148
67,627,772
74,045,658
76,903,998
11,467,656
5,986,948
798,936
(5,860,704)
10,272,852
6,758,719
6,413,680
82.55%
91.30%
98.88%
107.81%
86.81%
91.64%
92.30%
8,758,756
9,272,947
8,899,385
8,517,782
9,016,005
9,832,907
10,446,242
130.93%
64.56%
8.98%
(68.81%)
113.94%
68.74%
61.40%
102
VILLAGE OF BUFFALO GROVE, ILLINOIS Police Pension Fund Schedule of Changes in the Employer's Net Pension Liability - Last Ten Measurement Years December 31, 2025
Total Pension Liability Service Cost Interest Differences Between Expected and Actual Experience Change of Assumptions Changes in Benefit Terms Benefit Payments, Including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning
12/31/2016
12/31/2017
12/31/2018
1,534,051 5,861,687 358,140 170,816 —
1,637,139 6,171,179 353,405 (3,590,403) —
1,628,794 6,489,093 (92,557) — —
(3,283,543) 4,641,151 88,992,905
(3,602,086) 969,234 93,634,056
(3,803,918) 4,221,412 94,603,290
93,634,056
94,603,290
98,824,702
2,430,017 622,198 — 3,418,114
2,524,306 627,548 117,147 8,300,527
2,668,632 674,488 28,742 (2,726,611)
(3,283,543) (43,969) 3,142,817 56,384,952
(3,602,086) (62,733) 7,904,709 59,527,769
(3,803,919) (51,073) (3,209,741) 67,432,478
59,527,769
67,432,478
64,222,737
$ 34,106,287
27,170,812
34,601,965
63.57%
71.28%
64.99%
6,406,672
6,565,793
6,738,022
532.36%
413.82%
513.53%
$
Total Pension Liability - Ending Plan Fiduciary Net Position Contributions - Employer Contributions - Members Contributions - Other Net Investment Income Benefit Payments, Including Refunds of Member Contributions Administrative Expenses Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning
$
Plan Net Position - Ending Employer's Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll
$
Employer's Net Pension Liability as a Percentage of Covered Payroll
103
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
12/31/2025
1,649,198 6,772,474 1,380,756 1,501,809 425,172
1,978,338 7,214,313 832,348 (639,813) —
1,833,711 7,526,496 2,734,913 105,796 —
1,545,376 7,732,224 (5,311,797) 530,076 (46,145)
1,615,521 8,166,966 2,187,882 — —
1,563,710 8,609,406 3,155,052 (606,423) 256,146
1,780,384 8,929,351 1,352,948 — —
(4,150,161) 7,579,248 98,824,702
(4,677,746) 4,707,440 106,403,950
(5,271,645) 6,929,271 111,111,390
(4,961,571) (511,837) 118,040,661
(5,971,910) 5,998,459 117,528,824
(6,866,471) 6,111,420 123,527,283
(6,827,900) 5,234,783 129,638,703
106,403,950
111,111,390
118,040,661
117,528,824
123,527,283
129,638,703
134,873,486
2,899,820 660,350 83,945 13,161,796
3,095,593 820,098 — 8,491,232
3,333,876 702,138 — 15,052,674
3,374,694 691,080 147,907 (13,134,888)
3,795,905 684,746 418,623 11,480,741
3,401,081 704,975 156,383 9,130,489
3,406,430 744,504 8,352 17,669,774
(4,150,161) (59,767) 12,595,983 64,222,737
(4,677,746) (56,614) 7,672,563 76,818,720
(5,271,645) (52,096) 13,764,947 84,491,283
(4,961,571) (57,842) (13,940,620) 98,256,230
(5,971,910) (63,118) 10,344,987 84,315,610
(6,866,471) (60,302) 6,466,155 94,660,597
(6,827,900) (71,754) 14,929,406 101,126,752
76,818,720
84,491,283
98,256,230
84,315,610
94,660,597
101,126,752
116,056,158
29,585,230
26,620,107
19,784,431
33,213,214
28,866,686
28,511,951
18,817,328
72.20%
76.04%
83.24%
71.74%
76.63%
78.01%
86.05%
6,957,008
7,316,636
6,594,984
6,994,975
7,127,249
7,114,133
7,509,085
425.26%
363.83%
299.99%
474.82%
405.02%
400.78%
250.59%
104
VILLAGE OF BUFFALO GROVE, ILLINOIS Firefighters' Pension Fund Schedule of Changes in the Employer's Net Pension Liability - Last Ten Measurement Years December 31, 2025
Total Pension Liability Service Cost Interest Changes in Benefit Terms Differences Between Expected and Actual Experience Change of Assumptions Benefit Payments, Including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning
12/31/2016
12/31/2017
12/31/2018
1,260,242 4,757,917 — (133,067) (588,791)
1,348,459 4,961,836 — 204,895 —
1,325,255 5,226,040 — 234,796 —
(2,225,410) 3,070,891 69,082,934
(2,540,912) 3,974,278 72,153,825
(2,940,773) 3,845,318 76,128,103
72,153,825
76,128,103
79,973,421
2,166,040 516,422 — 3,415,513
1,863,911 520,184 588 7,601,179
1,897,968 533,534 — (2,917,744)
(2,225,410) (42,284) 3,830,281 50,348,164
(2,540,912) (60,925) 7,384,025 54,178,445
(2,940,773) (75,110) (3,502,125) 61,562,470
54,178,445
61,562,470
58,060,345
$ 17,975,380
14,565,633
21,913,076
75.09%
80.87%
72.60%
5,390,509
5,585,881
5,836,466
333.46%
260.76%
375.45%
$
Total Pension Liability - Ending Plan Fiduciary Net Position Contributions - Employer Contributions - Members Contributions - Other Net Investment Income Benefit Payments, Including Refunds of Member Contributions Administrative Expenses Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning
$
Plan Net Position - Ending Employer's Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll
$
Employer's Net Pension Liability as a Percentage of Covered Payroll
105
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
12/31/2025
1,264,639 5,477,561 640,951 1,246,145 1,195,177
1,621,266 5,825,574 — (121,525) (453,769)
1,591,437 6,039,648 — 1,916,946 81,975
1,443,273 6,222,731 (140,724) (3,700,466) 367,867
1,451,261 6,622,246 — 2,335,231 —
1,518,155 6,862,695 — 250,665 2,636,920
1,600,400 7,294,178 — 265,691 —
(3,445,092) 6,379,381 79,973,421
(3,823,483) 3,048,063 86,352,802
(4,182,238) 5,447,768 89,400,865
(4,412,534) (219,853) 94,848,633
(4,740,134) 5,668,604 94,628,780
(4,995,830) 6,272,605 100,297,384
(5,316,713) 3,843,556 106,569,989
86,352,802
89,400,865
94,848,633
94,628,780
100,297,384
106,569,989
110,413,545
1,915,164 542,215 — 11,064,141
2,019,305 535,959 — 10,436,145
2,370,805 554,144 — 10,590,082
2,410,584 588,028 — (12,711,873)
2,027,065 598,067 — 10,851,258
2,341,392 623,808 206 8,679,003
2,343,742 646,519 — 15,220,860
(3,445,092) (104,664) 9,971,764 58,060,345
(3,823,483) (74,148) 9,093,778 68,032,109
(4,182,238) (60,102) 9,272,691 77,125,887
(4,412,534) (49,317) (14,175,112) 86,398,578
(4,740,134) (50,021) 8,686,235 72,223,466
(4,995,830) (96,243) 6,552,336 80,909,701
(5,316,713) (101,894) 12,792,514 87,462,037
68,032,109
77,125,887
86,398,578
72,223,466
80,909,701
87,462,037
100,254,551
18,320,693
12,274,978
8,450,055
22,405,314
19,387,683
19,107,952
10,158,994
78.78%
86.27%
91.09%
76.32%
80.67%
82.07%
90.80%
6,026,152
5,890,818
5,846,393
6,114,396
6,346,072
6,573,240
6,809,622
304.02%
208.37%
144.53%
366.44%
305.51%
290.69%
149.19%
106
VILLAGE OF BUFFALO GROVE, ILLINOIS Police Pension Fund Schedule of Investment Returns - Last Ten Fiscal Years December 31, 2025
Fiscal Year
Annual MoneyWeighted Rate of Return, Net of Investment Expense
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
5.71% 14.38% (4.09%) 20.58% 11.06% 17.79% (13.49%) 13.66% 9.59% 17.79%
107
VILLAGE OF BUFFALO GROVE, ILLINOIS Firefighters' Pension Fund Schedule of Investment Returns - Last Ten Fiscal Years December 31, 2025
Fiscal Year
Annual MoneyWeighted Rate of Return, Net of Investment Expense
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
6.78% 14.05% (4.77%) 19.23% 15.46% 13.76% (15.79%) 15.36% 10.91% 17.57%
108
VILLAGE OF BUFFALO GROVE, ILLINOIS Retiree Benefits Plan Schedule of Changes in the Employer's Net OPEB Liability December 31, 2025
12/31/2018 Total OPEB Liability Service Cost Interest Change in Benefit Terms Differences Between Expected and Actual Experience Change of Assumptions Benefit Payments Other (Net Transfer) Net Change in Total OPEB Liability Total OPEB Liability - Beginning Total OPEB Liability - Ending
$
298,851 321,987 — — (774,109) (389,489) — (542,760) 9,548,871 9,006,111
Covered-Employee Payroll
$ 21,900,270
Total OPEB Liability as a Percentage of Covered-Employee Payroll
41.12%
Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75 Changes of Assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate from 2018 through 2025.
109
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
12/31/2025
263,570 360,862 — — 2,158,863 (409,592) — 2,373,703 9,006,111
525,258 304,253 — 1,668,331 1,494,795 (551,381) — 3,441,256 11,379,814
630,551 290,591 — — 400,334 (583,085) — 738,391 14,821,070
643,540 314,733 (293,086) (996,070) (2,658,932) (562,325) — (3,552,140) 15,559,461
558,758 436,067 — — 850,677 (570,174) — 1,275,328 12,007,321
648,308 423,996 464,315 (3,495,881) 295,602 (553,269) — (2,216,929) 13,282,649
591,409 442,145 — — (1,011,464) (457,640) — (435,550) 11,065,720
11,379,814
14,821,070
15,559,461
12,007,321
13,282,649
11,065,720
10,630,170
22,925,736
19,323,659
20,861,759
21,487,612
22,132,240
23,970,435
22,126,950
49.64%
76.70%
74.58%
55.88%
60.01%
46.16%
48.04%
110
VILLAGE OF BUFFALO GROVE, ILLINOIS General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Revenues Taxes Intergovernmental Charges for Services Licenses and Permits Fines and Forfeitures Investment Income Miscellaneous Total Revenues Expenditures General Government Public Safety Public Works Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures
Original Budget
Final Budget
Actual
Variance with Final Budget
$ 29,552,172 19,065,269 2,433,300 411,352 2,876,645 710,000 1,064,000 56,112,738
29,552,172 19,065,269 2,433,300 411,352 2,876,645 710,000 1,064,000 56,112,738
31,933,124 22,891,387 3,081,510 393,747 3,724,858 2,940,786 1,300,634 66,266,046
2,380,952 3,826,118 648,210 (17,605) 848,213 2,230,786 236,634 10,153,308
11,020,529 34,817,411 8,589,467 200,000
11,020,529 34,817,411 8,589,467 200,000
11,038,558 33,323,559 7,336,844 182,294
(18,029) 1,493,852 1,252,623 17,706
— — 54,627,407
— — 54,627,407
70,678 1,815 51,953,748
(70,678) (1,815) 2,673,659
1,485,331
1,485,331
14,312,298
12,826,967
854,900 (9,570,873) (8,715,973)
854,900 (9,570,873) (8,715,973)
854,900 (7,493,658) (6,638,758)
— 2,077,215 2,077,215
(7,230,642)
(7,230,642)
7,673,540
14,904,182
Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out
Net Change in Fund Balance Fund Balance - Beginning
52,464,449
Fund Balance - Ending
60,137,989
111
VILLAGE OF BUFFALO GROVE, ILLINOIS Lake Cook Road TIF - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Taxes Property Tax Investment Income Total Revenues
$
Expenditures General Government Net Change in Fund Balance
Final Budget
Actual
847,500 — 847,500
847,500 — 847,500
850,320 12,378 862,698
2,820 12,378 15,198
—
817,519
817,519
—
847,500
29,981
45,179
15,198
Fund Balance - Beginning
1,769,001
Fund Balances Ending
1,814,180
112
Variance with Final Budget
OTHER SUPPLEMENTARY INFORMATION Other supplementary information includes financial statements and schedules not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis. Such statements and schedules include: •
Budgetary Comparison Schedules - Major Governmental Funds
•
Combining Statements - Nonmajor Governmental Funds
•
Budgetary Comparison Schedules - Nonmajor Governmental Funds
•
Budgetary Comparison Schedules - Major Enterprise Funds
•
Combining Statements - Nonmajor Enterprise Funds
•
Budgetary Comparison Schedules - Nonmajor Enterprise Funds
•
Combining Statements - Internal Service Funds
•
Budgetary Comparison Schedules - Internal Service Funds
•
Combining Statements - Pension Trust Funds
•
Budgetary Comparison Schedules - Pension Trust Funds
113
INDIVIDUAL FUND DESCRIPTIONS
GENERAL FUND The General Fund is used to account for all financial resources except those required to be accounted for in another fund.
SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than fiduciary funds or capital project funds) that are legally restricted to expenditure for specified purposes. Lake Cook Road TIF Fund The Lake Cook Road TIF Fund is used to account for incremental revenues generated within the TIF boundaries and costs incurred from the formation and redevelopment of the Village's Lake Cook Road Corridor. Motor Fuel Tax Fund The Motor Fuel Tax Fund is used to account for expenditures related to approved motor fuel tax projects and revenue from the state gasoline tax as collected and distributed by the State of Illinois. Local Motor Fuel Tax Fund The Local Motor Fuel Tax Fund is used to finance local road and street improvements from local gasoline tax revenues collected and distributed by the State of Illinois. Metra Parking Lot Fund The Metra Parking Lot Fund is used to account for revenue generated and costs incurred from the operation of the Metra parking lot operated by the Village. Dundee Road TIF Fund The Dundee Road TIF Fund is used to account for incremental revenues generated within the TIF boundaries and costs incurred from the formation and redevelopment of the Village's Dundee Road Corridor.
DEBT SERVICE FUND The Debt Service Fund is used to account for monies restricted, committed or assigned to pay for principal and interest payments on the Village’s debt obligations.
114
INDIVIDUAL FUND DESCRIPTIONS - Continued
CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for all resources used for the acquisition of capital assets except those financed by Proprietary Funds. Facilities Development Fund The Facilities Development Fund is used to account for and reports financial resources that are restricted, committed or assigned to expenditures for acquisition, construction, improvement, repair, and replacement of the Village’s capital facilities. Street Maintenance Fund The Street Maintenance Fund is used to account for and reports financial resources that are restricted, committed or assigned to expenditures for acquisition, construction, improvement, repair, and replacement of the Village’s roadways. Vehicle Equipment Replacement Fund The Vehicle Equipment Replacement Fund is used to account for the purchase of vehicles and capital equipment for the General Fund operating departments. Financing is typically provided by the General Fund committed fund balance.
ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where it has been decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purpose. Water and Sewerage Fund The Water and Sewerage Fund is used to account for the revenue and expenses related to the operation of the water and sewerage system. Arboretum Golf Fund The Arboretum Fund is used to account for the revenues and expenses related to the operation of the Arboretum golf course.
115
INDIVIDUAL FUND DESCRIPTIONS - Continued
ENTERPRISE FUNDS - Continued Buffalo Grove Golf Fund The Buffalo Grove Golf Fund is used to account for revenue and expenses associated with operating the Village's golf course. Refuse Service Fund The Refuse Fund is used to account for refuse services contracted by the Village for the benefit of its citizens by a private entity. The fund is financed by the fees charged to residents by the private entity and remitted back to the Village of Buffalo Grove.
INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies other governmental unit, or to other governmental units, on a costreimbursement basis. Information Technology Fund The Technology Fund is used to account for all costs associated with providing technology services to all departments in the Village. This fund accounts for global technology costs, shared, and/or exclusive department specific hardware, software, and other technology needs. Costs are assessed to each department by combining the cost of all direct and indirect/shared services as incurred. The indirect/shared costs are charged back per the user base of service(s). Central Garage Fund The Central Garage Fund is used to account for the activities required to operate and maintain the Village’s automotive fleet. Department charges are derived from the work order process; which documents the type of work performed and cost(s) associated with the work. Building Maintenance Fund The Building Maintenance Fund is used to account for providing a clean, healthy, and safe working environment in Village facilities, meeting areas and public areas.
116
INDIVIDUAL FUND DESCRIPTIONS - Continued
PENSION TRUST FUNDS Police Pension Fund The Police Pension Fund is used to account for the resources necessary to provide retirement and disability pension benefits to full-time sworn police personnel. Although this is a single-employer pension plan, the defined benefits and employer and employee contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. Financing is provided by the Village contributions, employee payroll withholdings, and investment income. Firefighters' Pension Fund The Firefighters’ Pension Fund is used to account for the accumulation of resources to be used for retirement annuity payments to employees of the fire department at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law and by the Village at amounts determined by an annual actuarial study.
117
VILLAGE OF BUFFALO GROVE, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget
Final Budget
Actual
Variance with Final Budget
$ 16,780,272 7,361,900 990,000 70,000 650,000 1,000,000 1,600,000 1,100,000 — — 29,552,172
16,780,272 7,361,900 990,000 70,000 650,000 1,000,000 1,600,000 1,100,000 — — 29,552,172
16,622,295 9,374,122 1,194,158 144,138 753,030 1,059,860 1,554,119 1,104,017 307 127,078 31,933,124
(157,977) 2,012,222 204,158 74,138 103,030 59,860 (45,881) 4,017 307 127,078 2,380,952
9,926,210 6,900,012 40,000 251,551 1,246,330 25,000 128,752 185,000 362,414 19,065,269
9,926,210 6,900,012 40,000 251,551 1,246,330 25,000 128,752 185,000 362,414 19,065,269
13,394,094 7,825,838 35,306 215,100 387,660 152,527 127,755 216,183 536,924 22,891,387
3,467,884 925,826 (4,694) (36,451) (858,670) 127,527 (997) 31,183 174,510 3,826,118
Charges for Services
2,433,300
2,433,300
3,081,510
648,210
Licenses and Permits
411,352
411,352
393,747
(17,605)
Fines and Forfeitures
2,876,645
2,876,645
3,724,858
848,213
Investment Income
710,000
710,000
2,940,786
2,230,786
Miscellaneous
1,064,000
1,064,000
1,300,634
236,634
Total Revenues
56,112,738
56,112,738
66,266,046
10,153,308
Taxes Property Tax Sales Tax - Home Rule Real Estate Transfer Tax Hotel/Motel Tax Telecommunications Tax Food and Beverage Tax Electricity Tax Natural Gas Tax Auto Rental Tax Foreign Fire
Intergovernmental Sales Tax Income Tax Replacement Tax Cannabis Tax Local Use Road and Bridge Tax Wheeling Road and Bridge Tax Vernon Video Gaming Tax Local Reimbursement
118
VILLAGE OF BUFFALO GROVE, ILLINOIS Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Taxes Property Tax Investment Income Total Revenues
$
Final Budget
Actual
Variance with Final Budget
335,269 5,000 340,269
335,269 5,000 340,269
329,510 — 329,510
(5,759) (5,000) (10,759)
Expenditures Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures
2,646,180 2,290,552 4,936,732
2,646,180 2,531,890 5,178,070
2,646,180 2,531,890 5,178,070
— — —
Excess (Deficiency) of Revenues Over (Under) Expenditures
(4,596,463)
(4,837,801)
(4,848,560)
(10,759)
Other Financing Sources Transfers In
4,598,464
4,598,464
4,839,626
241,162
2,001
(239,337)
(8,934)
230,403
Net Change in Fund Balance Fund Balance - Beginning
25,432
Fund Balance - Ending
16,498
119
VILLAGE OF BUFFALO GROVE, ILLINOIS Facilities Development - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Intergovernmental Grants Investment Income Total Revenues Expenditures Capital Outlay Debt Service Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Debt Issuance Premium on Debt Issuance Transfers In
$
Final Budget
Actual
Variance with Final Budget
171,400 — 171,400
171,400 — 171,400
— 497,110 497,110
(171,400) 497,110 325,710
13,560,033
13,560,033
4,665,877
8,894,156
— 13,560,033
— 13,560,033
263,144 4,929,021
(263,144) 8,631,012
(13,388,633) (13,388,633)
(4,431,911)
8,956,722
17,400,000 — 1,999,633 19,399,633
17,400,000 — 1,999,633 19,399,633
16,735,000 929,362 431,876 18,096,238
(665,000) 929,362 (1,567,757) (1,303,395)
6,011,000
6,011,000
13,664,327
7,653,327
Net Change in Fund Balance Fund Balance - Beginning
1,361,815
Fund Balance - Ending
15,026,142
120
VILLAGE OF BUFFALO GROVE, ILLINOIS Street Maintenance - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Revenues Intergovernmental Grants Investment Income Total Revenues Expenditures Capital Outlay Debt Service Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Debt Issuance Premium on Debt Issuance Transfers In
Original Budget
Final Budget
Actual
Variance with Final Budget
$ 13,351,879 — 13,351,879
13,351,879 — 13,351,879
5,700,429 227,817 5,928,246
(7,651,450) 227,817 (7,423,633)
26,350,094
26,350,094
16,092,046
10,258,048
— 26,350,094
— 26,350,094
114,116 16,206,162
(114,116) 10,143,932
(12,998,215) (12,998,215) (10,277,916)
2,720,299
8,000,000 — 4,998,215 12,998,215
8,000,000 — 4,998,215 12,998,215
7,325,000 789,116 5,321,577 13,435,693
(675,000) 789,116 323,362 437,478
—
—
3,157,777
3,157,777
Net Change in Fund Balance Fund Balance - Beginning
2,054,823
Fund Balance - Ending
5,212,600
121
VILLAGE OF BUFFALO GROVE, ILLINOIS Vehicle Equipment Replacement - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Miscellaneous
$
Final Budget
Variance with Final Budget
Actual
315,000
315,000
—
(315,000)
Expenditures Capital Outlay
2,579,617
2,579,617
1,844,986
734,631
Excess (Deficiency) of Revenues Over (Under) Expenditures
(2,264,617)
(2,264,617)
(1,844,986)
419,631
— 2,264,617 2,264,617
— 2,264,617 2,264,617
40,364 1,804,622 1,844,986
40,364 (459,995) (419,631)
—
—
—
—
Other Financing Sources Disposal of Capital Assets Transfers In
Net Change in Fund Balance Fund Balance - Beginning
17,745
Fund Balance - Ending
17,745
122
VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Governmental Combining Balance Sheet December 31, 2025
Motor Fuel Tax
Special Revenue Local Metra Motor Parking Fuel Tax Lot
Dundee Road TIF
Totals
ASSETS Cash and Investments Receivables - Net of Allowances Other
$ 4,873,749
943,596
24,130
1,622
5,843,097
174,943
—
—
234,612
409,555
5,048,692
943,596
24,130
236,234
6,252,652
—
—
2,083
5,173
7,256
Restricted
5,048,692
943,596
22,047
231,061
6,245,396
Total Liabilities and Fund Balances
5,048,692
943,596
24,130
236,234
6,252,652
Total Assets LIABILITIES Accounts Payable FUND BALANCES
123
VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Governmental Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2025
Motor Fuel Tax Revenues Property Tax Intergovernmental Charges for Services Fines and Forfeitures Investment Income Total Revenues
Dundee Road TIF
Totals
— 1,972,765 — — 209,989 2,182,754
— 563,107 — — — 563,107
— — 30 75,144 — 75,174
268,370 — — — 277 268,647
268,370 2,535,872 30 75,144 210,266 3,089,682
—
—
69,436
5,173
74,609
Excess (Deficiency) of Revenues Over (Under) Expenditures
2,182,754
563,107
5,738
263,474
3,015,073
Other Financing (Uses) Transfers Out
(2,246,577)
(246,950)
—
—
(2,493,527)
Net Change in Fund Balances
(63,823)
316,157
5,738
263,474
521,546
Fund Balances - Beginning
5,112,515
627,439
16,309
(32,413)
5,723,850
Fund Balances - Ending
5,048,692
943,596
22,047
231,061
6,245,396
Expenditures General Government
$
Special Revenue Local Metra Motor Parking Fuel Tax Lot
124
VILLAGE OF BUFFALO GROVE, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Variance with Final Budget
Original Budget
Final Budget
Actual
1,951,000 190,000 2,141,000
1,951,000 190,000 2,141,000
1,972,765 209,989 2,182,754
21,765 19,989 41,754
—
—
—
—
Excess (Deficiency) of Revenues Over (Under) Expenditures
2,141,000
2,141,000
2,182,754
41,754
Other Financing (Uses) Transfers Out
(1,923,215)
(2,246,578)
(2,246,577)
1
217,785
(105,578)
(63,823)
41,755
Revenues Intergovernmental Motor Fuel Tax Investment Income Total Revenues
$
Expenditures None
Net Change in Fund Balance Fund Balance - Beginning
5,112,515
Fund Balance - Ending
5,048,692
125
VILLAGE OF BUFFALO GROVE, ILLINOIS Local Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Intergovernmental Local Motor Fuel Tax
$
Final Budget
Variance with Final Budget
Actual
640,000
640,000
563,107
(76,893)
—
—
—
—
Excess (Deficiency) of Revenues Over (Under) Expenditures
640,000
640,000
563,107
(76,893)
Other Financing (Uses) Transfers Out
(246,950)
(246,950)
(246,950)
—
Net Change in Fund Balance
393,050
393,050
316,157
(76,893)
Expenditures None
Fund Balance - Beginning
627,439
Fund Balance - Ending
943,596
126
VILLAGE OF BUFFALO GROVE, ILLINOIS Metra Parking Lot - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Charges for Services Fines and Forfeitures Total Revenues
$
Final Budget
Variance with Final Budget
Actual
— 61,000 61,000
— 61,000 61,000
30 75,144 75,174
30 14,144 14,174
Expenditures General Government
220,958
220,958
69,436
151,522
Excess (Deficiency) of Revenues Over (Under) Expenditures
(159,958)
(159,958)
5,738
165,696
Other Financing Sources Transfers In
160,000
160,000
—
(160,000)
42
42
5,738
5,696
Net Change in Fund Balance Fund Balance - Beginning
16,309
Fund Balance - Ending
22,047
127
VILLAGE OF BUFFALO GROVE, ILLINOIS Dundee Road TIF - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget Revenues Taxes Property Tax Investment Income Total Revenues
$
Expenditures General Government Net Change in Fund Balance
Final Budget
Actual
59,000 — 59,000
59,000 — 59,000
268,370 277 268,647
209,370 277 209,647
—
5,173
5,173
—
59,000
53,827
263,474
209,647
Fund Balance - Beginning
(32,413)
Fund Balances Ending
231,061
128
Variance with Final Budget
VILLAGE OF BUFFALO GROVE, ILLINOIS Water and Sewerage - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget
Final Budget
Actual
Variance with Final Budget
$ 17,240,293 111,000 — 17,351,293
17,240,293 111,000 — 17,351,293
16,767,176 42,415 422,222 17,231,813
(473,117) (68,585) 422,222 (119,480)
Operating Expenses Operations Water Sewer Water Purchases Capital Outlay Total Operating Expenses
3,633,927 5,156,844 2,300,026 9,849,000 20,939,797
3,633,927 5,156,844 2,300,026 9,849,000 20,939,797
2,807,547 4,821,748 2,181,522 6,715,935 16,526,752
826,380 335,096 118,504 3,133,065 4,413,045
Operating Income (Loss)
(3,588,504)
(3,588,504)
705,061
4,293,565
80,000 (81,878) (1,878)
80,000 (81,878) (1,878)
610,379 (81,878) 528,501
530,379 — 530,379
Income (Loss) Before Transfers
(3,590,382)
(3,590,382)
1,233,562
4,823,944
Transfers Out
(2,959,791)
(2,959,791)
(2,959,791)
—
Non-GAAP Basis Change in Net Position
(6,550,173)
(6,550,173)
(1,726,229)
4,823,944
— — —
— — —
6,660,619 (2,115,678) 4,544,941
6,660,619 (2,115,678) 4,544,941
(6,550,173)
(6,550,173)
2,818,712
9,368,885
Operating Revenues Charges for Services Water and Sewer Charges Connection and Recapture Fees Miscellaneous Total Operating Revenues
Nonoperating Revenues (Expenses) Investment Income Interest Expense
Adjustments to GAAP Basis Capital Assets Capitalized Depreciation and Amortization
Change in Net Position Net Position - Beginning
73,373,946
Net Position - Ending
76,192,658
129
VILLAGE OF BUFFALO GROVE, ILLINOIS Arboretum Golf - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Variance with Final Budget
Original Budget
Final Budget
Actual
1,071,350 67,000 400,750 58,100 1,597,200
1,071,350 67,000 400,750 58,100 1,597,200
1,236,554 154,569 449,250 81,192 1,921,565
165,204 87,569 48,500 23,092 324,365
Operating Expenses Operations Golf Operations Cost of Sales - Pro Shop Total Operating Expenses
1,759,701 55,000 1,814,701
1,759,701 55,000 1,814,701
1,476,643 102,298 1,578,941
283,058 (47,298) 235,760
Operating Income (Loss)
(217,501)
(217,501)
342,624
560,125
7,500 — 7,500
7,500 — 7,500
20,417 (12,607) 7,810
12,917 (12,607) 310
(210,001)
(210,001)
350,434
560,435
—
—
(189,050)
(189,050)
(210,001)
(210,001)
161,384
371,385
Operating Revenues Charges for Services Daily Greens Fee and Membership Merchandise Sales Cart, Club and Other Rentals Miscellaneous Total Operating Revenues
$
Nonoperating Revenues (Expenses) Investment Income Interest Expense
Non-GAAP Basis Change in Net Position Adjustments to GAAP Basis Depreciation and Amortization Change in Net Position Net Position - Beginning
6,730,303
Net Position - Ending
6,891,687
130
VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Net Position December 31, 2025
Buffalo Grove Golf
Refuse Service
Totals
ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Leases Other Inventories Total Current Assets
$
Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Total Noncurrent Assets Total Assets
1,981,702
315,964
2,297,666
723,922 7,234 30,891 2,743,749
— — — 315,964
723,922 7,234 30,891 3,059,713
978,776 3,731,639 (2,992,897) 1,717,518 4,461,267
— — — — 315,964
978,776 3,731,639 (2,992,897) 1,717,518 4,777,231
90,326 23,903 114,229 4,575,496
— — — 315,964
90,326 23,903 114,229 4,891,460
DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - RBP Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources
131
Buffalo Grove Golf
Refuse Service
Totals
LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Compensated Absences Payable Total OPEB Liability - RBP Leases Payable Total Current Liabilities
$
20,536 14,479 15,348 3,890 57,388 111,641
— — — — — —
20,536 14,479 15,348 3,890 57,388 111,641
61,392 155,432 86,453 121,527 424,804 536,445
— — — — — —
61,392 155,432 86,453 121,527 424,804 536,445
293 53,833 599,426 653,552 1,189,997
— — — — —
293 53,833 599,426 653,552 1,189,997
Net Investment in Capital Assets Unrestricted
1,538,603 1,846,896
— 315,964
1,538,603 2,162,860
Total Net Position
3,385,499
315,964
3,701,463
Noncurrent Liabilities Compensated Absences Payable Net Pension Liability - IMRF Total OPEB Liability - RBP Leases Payable Total Long-Term Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - RBP Deferred Items - Leases Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION
132
VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Revenues, Expenses, and Changes in Net Position For the Fiscal Year Ended December 31, 2025
Buffalo Grove Golf
Refuse Service
Totals
$
1,872,342
1,110,014
2,982,356
1,424,236 103,455 1,527,691
857,771 — 857,771
2,282,007 103,455 2,385,462
344,651
252,243
596,894
58,815 (8,051) 50,764
— — —
58,815 (8,051) 50,764
395,415
252,243
647,658
—
(175,000)
(175,000)
Change in Net Position
395,415
77,243
472,658
Net Position - Beginning
2,990,084
238,721
3,228,805
Net Position - Ending
3,385,499
315,964
3,701,463
Operating Revenues Charges for Services Operating Expenses Operations Depreciation Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Investment Income Interest Expense
Income Before Transfers Transfers Out
133
VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2025
Buffalo Grove Golf
Refuse Service
Totals
$
2,007,946 (366,423) (1,124,018) 517,505
1,110,014 — (857,771) 252,243
3,117,960 (366,423) (1,981,789) 769,748
—
(175,000)
(175,000)
(55,250) (8,051) (63,301)
— — —
(55,250) (8,051) (63,301)
Cash Flows from Investing Activities Investment Income
58,815
—
58,815
Net Change in Cash and Cash Equivalents
513,019
77,243
590,262
Cash and Cash Equivalents - Beginning
1,468,683
238,721
1,707,404
Cash and Cash Equivalents - Ending
1,981,702
315,964
2,297,666
Cash Flows from Operating Activities Receipts from Customers and Users Payments to Employees Payments to Suppliers
Cash Flows from Noncapital Financing Activities Transfers Out Cash Flows from Capital and Related Financing Activities Principal Paid on Debt Interest Expense
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization Expense (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities
344,651
252,243
596,894
103,455 135,604 (66,205)
— — —
103,455 135,604 (66,205)
Net Cash Provided by Operating Activities
517,505
252,243
769,748
134
VILLAGE OF BUFFALO GROVE, ILLINOIS Buffalo Grove Golf - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Operating Revenues Charges for Services Daily Greens Fee and Membership Merchandise Sales Cart, Club and Other Rentals Driving Range Fees Miscellaneous Total Operating Revenues
Variance with Final Budget
Original Budget
Final Budget
Actual
966,200 82,000 336,660 171,200 24,000 1,580,060
966,200 82,000 336,660 171,200 24,000 1,580,060
1,060,482 125,447 433,191 210,834 42,388 1,872,342
94,282 43,447 96,531 39,634 18,388 292,282
1,228,816 55,000 169,000 1,452,816
1,297,600 81,886 169,000 1,548,486
1,307,049 81,886 35,301 1,424,236
(9,449) — 133,699 124,250
127,244
31,574
448,106
416,532
15,000 — 15,000
15,000 — 15,000
58,815 (8,051) 50,764
43,815 (8,051) 35,764
142,244
46,574
498,870
452,296
—
—
(103,455)
(103,455)
142,244
46,574
395,415
348,841
$
Operating Expenses Operations Golf Operations Cost of Sales - Pro Shop Capital Outlay Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Investment Income Interest Expense
Non-GAAP Basis Change in Net Position Adjustments to GAAP Basis Depreciation and Amortization Change in Net Position Net Position - Beginning
2,990,084
Net Position - Ending
3,385,499
135
VILLAGE OF BUFFALO GROVE, ILLINOIS Refuse Service - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget
Final Budget
Actual
Variance with Final Budget
1,230,560
1,230,560
1,110,014
(120,546)
1,026,750
1,026,750
857,771
168,979
Income Before Transfers
203,810
203,810
252,243
48,433
Transfers Out
(175,000)
(175,000)
(175,000)
—
28,810
28,810
77,243
48,433
Operating Revenues Charges for Services SWANCC User Fees
$
Operating Expenses Operations Refuse
Change in Net Position Net Position - Beginning
238,721
Net Position - Ending
315,964
136
VILLAGE OF BUFFALO GROVE, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2025
Information Technology
Central Garage
Building Maintenance
Totals
ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Leases Total Current Assets
$
525,119
170,012
303,669
998,800
— 525,119
— 170,012
544,475 848,144
544,475 1,543,275
2,633,822 (473,569) 2,160,253 2,685,372
— — — 170,012
— — — 848,144
2,633,822 (473,569) 2,160,253 3,703,528
LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Accrued Interest Installment Loans Payable Subscriptions Payable Total Current Liabilities
127,716 — 63,183 57,573 163,462 411,934
133,845 31,074 — — — 164,919
226,805 22,040 — — — 248,845
488,366 53,114 63,183 57,573 163,462 825,698
Noncurrent Liabilities Installment Loans Payable Subscriptions Payable Total Long-Term Liabilities Total Liabilities
331,066 2,205,938 2,537,004 2,948,938
— — — 164,919
— — — 248,845
331,066 2,205,938 2,537,004 3,362,702
Noncurrent Assets Capital Assets Depreciable/Amortizable Accumulated Depreciation/Amortization Total Noncurrent Assets Total Assets
DEFERRED INFLOWS OF RESOURCES Deferred Items - Leases Total Liabilities and Deferred Inflows of Resources
—
—
528,750
528,750
2,948,938
164,919
777,595
3,891,452
NET POSITION Net Investment in Capital Assets Unrestricted
(597,786) 334,220
— 5,093
— 70,549
(597,786) 409,862
Total Net Position
(263,566)
5,093
70,549
(187,924)
137
VILLAGE OF BUFFALO GROVE, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position For the Fiscal Year Ended December 31, 2025
Information Technology
Central Garage
Building Maintenance
Totals
2,319,939
1,808,235
2,056,838
6,185,012
Operating Expenses Operations Information Technology Central Garage Building Maintenance Depreciation and Amortization Total Operating Expenses
2,214,121 — — 202,948 2,417,069
— 1,808,235 — — 1,808,235
— — 2,056,838 — 2,056,838
2,214,121 1,808,235 2,056,838 202,948 6,282,142
Operating (Loss)
(97,130)
—
—
(97,130)
— — (166,436) (166,436)
— — — —
29,019 117,331 — 146,350
29,019 117,331 (166,436) (20,086)
(263,566)
—
146,350
(117,216)
—
—
(130,625)
(130,625)
Change in Net Position
(263,566)
—
15,725
(247,841)
Net Position - Beginning
—
5,093
54,824
59,917
(263,566)
5,093
70,549
(187,924)
Operating Revenues Interfund Services
$
Nonoperating Revenues (Expenses) Investment Income Miscellaneous Income Interest Expense
Income (Loss) Before Transfers Transfers Out
Net Position - Ending
138
VILLAGE OF BUFFALO GROVE, ILLINOIS Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2025
Information Technology
Central Garage
Building Maintenance
Totals
2,319,939 — (2,160,335) 159,604
1,808,235 (569,005) (1,178,686) 60,544
2,174,169 (568,962) (903,488) 701,719
6,302,343 (1,137,967) (4,242,509) 921,867
— — —
— — —
(544,475) (130,625) (675,100)
(544,475) (130,625) (675,100)
(209,609) (166,436) (376,045)
— — —
— — —
(209,609) (166,436) (376,045)
—
—
29,019
29,019
Net Change in Cash and Cash Equivalents
(216,441)
60,544
55,638
(100,259)
Cash and Cash Equivalents - Beginning
741,560
109,468
248,031
1,099,059
Cash and Cash Equivalents - Ending
525,119
170,012
303,669
998,800
(97,130)
—
—
(97,130)
202,948 — 53,786
— — 60,544
— 117,331 584,388
202,948 117,331 698,718
159,604
60,544
701,719
921,867
Cash Flows from Operating Activities Interfund Services Provided Payments to Employees Payments to Suppliers
$
Cash Flows from Noncapital Financing Activities Net Change in Lessor Lease Transactions Transfers In
Cash Flows from Capital and Related Financing Activities Principal Paid on Debt Interest Expense
Cash Flows from Investing Activities Investment Income
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization Expense Other Income Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities
139
VILLAGE OF BUFFALO GROVE, ILLINOIS Information Technology - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget
Final Budget
Actual
Variance with Final Budget
2,674,074
2,674,074
2,319,939
(354,135)
Operating Expenses Operations
2,570,142
2,570,142
2,214,121
356,021
Operating Income
103,932
103,932
105,818
1,886
Nonoperating (Expenses) Interest Expense
(3,457)
(3,457)
(166,436)
(162,979)
Non-GAAP Basis Change in Net Position
100,475
100,475
(60,618)
(161,093)
(100,475) — (100,475)
(100,475) — (100,475)
— (202,948) (202,948)
100,475 (202,948) (102,473)
—
—
(263,566)
(263,566)
Operating Revenues Interfund Services
$
Adjustments to GAAP Basis Principal Retirement Depreciation and Amortization
Change in Net Position Net Position - Beginning
—
Net Position - Ending
(263,566)
140
VILLAGE OF BUFFALO GROVE, ILLINOIS Central Garage - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Operating Revenues Interfund Services
Original Budget
Final Budget
Actual
Variance with Final Budget
1,957,335
1,957,335
1,808,235
(149,100)
1,957,335
1,957,335
1,808,235
149,100
—
—
—
—
$
Operating Expenses Operations Central Garage Change in Net Position Net Position - Beginning
5,093
Net Position - Ending
5,093
141
VILLAGE OF BUFFALO GROVE, ILLINOIS Building Maintenance - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget
Final Budget
Actual
Variance with Final Budget
2,277,980
2,277,980
2,056,838
(221,142)
2,277,980
2,277,980
2,056,838
221,142
—
—
—
—
— — —
— — —
29,019 117,331 146,350
29,019 117,331 146,350
Income Before Transfers
—
—
146,350
146,350
Transfers Out
—
—
(130,625)
(130,625)
Change in Net Position
—
—
15,725
15,725
Operating Revenues Interfund Services
$
Operating Expenses Operations Building Maintenance Operating Income Nonoperating Revenues Investment Income Miscellaneous Income
Net Position - Beginning
54,824
Net Position - Ending
70,549
142
VILLAGE OF BUFFALO GROVE, ILLINOIS Pension Trust Funds Combining Statement of Fiduciary Net Position December 31, 2025
Police Pension
Firefighters' Pension
Totals
ASSETS Cash and Cash Equivalents Investments Illinois Police Pension Investment Fund Illinois Firefighters' Pension Investment Fund Equity Securities Due from Municipality Prepaids Total Assets
$
692,715
148,741
841,456
114,183,160 — 114,183,160 — 99,862,059 99,862,059 831,653 — 831,653 357,790 247,182 604,972 1,575 6,943 8,518 116,066,893 100,264,925 216,331,818
LIABILITIES 10,735
Accounts Payable
10,374
21,109
NET POSITION Net Position Restricted for Pensions
116,056,158 100,254,551 216,310,709
143
VILLAGE OF BUFFALO GROVE, ILLINOIS Pension Trust Funds Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2025
Police Pension
Firefighters' Pension
Totals
3,406,430 744,504 8,352 4,159,286
2,343,742 646,519 — 2,990,261
5,750,172 1,391,023 8,352 7,149,547
606,263 17,157,358 17,763,621 (93,847) 17,669,774 21,829,060
1,815,712 13,597,923 15,413,635 (192,775) 15,220,860 18,211,121
2,421,975 30,755,281 33,177,256 (286,622) 32,890,634 40,040,181
Deductions Administration Benefits and Refunds Total Deductions
71,754 6,827,900 6,899,654
101,894 5,316,713 5,418,607
173,648 12,144,613 12,318,261
Change in Fiduciary Net Position
14,929,406
12,792,514
27,721,920
Net Position Restricted for Pensions Beginning
101,126,752
87,462,037 188,588,789
Ending
116,056,158 100,254,551 216,310,709
Additions Contributions - Employer Contributions - Plan Members Contributions - Other Total Contributions
$
Investment Income Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Total Additions
144
VILLAGE OF BUFFALO GROVE, ILLINOIS Police Pension - Pension Trust Fund Schedule of Changes in the Fiduciary Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Original Budget
Final Budget
Actual
Variance with Final Budget
3,446,992 897,700 — 4,344,692
3,446,992 897,700 — 4,344,692
3,406,430 744,504 8,352 4,159,286
(40,562) (153,196) 8,352 (185,406)
Less Investment Expenses Net Investment Income Total Additions
1,346,100 8,335,300 9,681,400 (86,000) 9,595,400 13,940,092
1,346,100 8,335,300 9,681,400 (86,000) 9,595,400 13,940,092
606,263 17,157,358 17,763,621 (93,847) 17,669,774 21,829,060
(739,837) 8,822,058 8,082,221 (7,847) 8,074,374 7,888,968
Deductions Administration Benefits and Refunds Total Deductions
54,000 6,500,250 6,554,250
54,000 6,500,250 6,554,250
71,754 6,827,900 6,899,654
(17,754) (327,650) (345,404)
Change in Fiduciary Net Position
7,385,842
7,385,842
14,929,406
7,543,564
Additions Contributions - Employer Contributions - Plan Members Contributions - Other Total Contributions Investment Income Interest Earned Net Change in Fair Value
$
Net Position Restricted for Pensions Beginning
101,126,752
Ending
116,056,158
145
VILLAGE OF BUFFALO GROVE, ILLINOIS Firefighters' Pension - Pension Trust Fund Schedule of Changes in the Fiduciary Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2025
Variance with Final Budget
Original Budget
Final Budget
Actual
2,371,240 680,500 3,051,740
2,371,240 680,500 3,051,740
2,343,742 646,519 2,990,261
(27,498) (33,981) (61,479)
Less Investment Expenses Net Investment Income Total Additions
1,082,000 5,380,300 6,462,300 (130,000) 6,332,300 9,384,040
1,082,000 5,380,300 6,462,300 (130,000) 6,332,300 9,384,040
1,815,712 13,597,923 15,413,635 (192,775) 15,220,860 18,211,121
733,712 8,217,623 8,951,335 (62,775) 8,888,560 8,827,081
Deductions Administration Benefits and Refunds Total Deductions
7,100 5,248,900 5,256,000
7,100 5,248,900 5,256,000
101,894 5,316,713 5,418,607
(94,794) (67,813) (162,607)
Change in Fiduciary Net Position
4,128,040
4,128,040
12,792,514
8,664,474
Additions Contributions - Employer Contributions - Plan Members Total Contributions
$
Investment Income Interest Earned Net Change in Fair Value
Net Position Restricted for Pensions Beginning
87,462,037
Ending
100,254,551
146
SUPPLEMENTAL SCHEDULES
147
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements General Obligation Bonds of 2012 December 31, 2025
August 27, 2012 June 30, 2030 $6,000,000 2.00% - 2.75% June 30 and December 30 December 30 Amalgamated Bank of Chicago
Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030
Principal $
Interest
Totals
650,000 650,000 700,000 750,000 750,000
86,938 72,313 56,875 39,375 20,625
736,938 722,313 756,875 789,375 770,625
3,500,000
276,126
3,776,126
148
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements General Obligation Bonds of 2016 December 31, 2025
May 3, 2016 December 30, 2031 $6,125,000 2.00% - 3.00% June 30 and December 30 December 30 Amalgamated Bank of Chicago
Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030 2031
Principal $
Interest
Totals
330,000 335,000 345,000 350,000 360,000 370,000
52,131 45,531 38,413 30,650 21,900 11,100
382,131 380,531 383,413 380,650 381,900 381,100
2,090,000
199,725
2,289,725
149
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements General Obligation Bonds of 2020 December 31, 2025
May 20, 2020 December 30, 2035 $24,000,000 3.00% - 5.00% June 30 and December 30 December 30 Amalgamated Bank of Chicago
Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Principal $
Interest
Totals
1,330,000 1,400,000 1,465,000 1,540,000 1,585,000 1,635,000 1,685,000 1,735,000 1,785,000 1,840,000
563,900 497,400 427,400 354,150 307,950 260,400 211,350 160,800 108,750 55,200
1,893,900 1,897,400 1,892,400 1,894,150 1,892,950 1,895,400 1,896,350 1,895,800 1,893,750 1,895,200
16,000,000
2,947,300
18,947,300
150
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements General Obligation Bonds of 2022 December 31, 2025
September 13, 2022 December 30, 2042 $19,000,000 4.00% - 5.00% June 30 and December 30 December 30 Amalgamated Bank of Chicago
Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
Principal $
Interest
Totals
100,000 100,000 — — 100,000 860,000 1,290,000 1,350,000 1,420,000 1,510,000 2,340,000 2,460,000 2,580,000 1,035,000 1,085,000 1,130,000 1,170,000
892,650 887,650 882,650 882,650 882,650 877,650 834,650 770,150 702,650 631,650 556,150 439,150 316,150 187,150 135,400 92,000 46,800
992,650 987,650 882,650 882,650 982,650 1,737,650 2,124,650 2,120,150 2,122,650 2,141,650 2,896,150 2,899,150 2,896,150 1,222,150 1,220,400 1,222,000 1,216,800
18,530,000
10,017,800
28,547,800
151
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements General Obligation Bonds of 2025 December 31, 2025
April 8, 2025 December 30, 2045 $24,060,000 4.00% - 5.00% June 30 and December 30 December 30 Amalgamated Bank of Chicago
Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
Principal $
Interest
Totals
790,000 830,000 875,000 915,000 965,000 1,010,000 1,065,000 1,115,000 1,170,000 1,235,000 1,295,000 1,360,000 2,305,000 2,415,000 1,010,000 1,050,000 1,095,000 1,140,000 1,185,000 1,235,000
1,143,326 1,103,824 1,062,326 1,018,574 972,826 924,576 874,074 820,826 765,074 706,576 644,824 580,076 512,074 396,826 276,074 235,676 193,674 149,876 102,850 52,486
1,933,326 1,933,824 1,937,326 1,933,574 1,937,826 1,934,576 1,939,074 1,935,826 1,935,074 1,941,576 1,939,824 1,940,076 2,817,074 2,811,826 1,286,074 1,285,676 1,288,674 1,289,876 1,287,850 1,287,486
24,060,000
12,536,438
36,596,438
152
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements IEPA Loan Payable of 2013 - Pump Stations Improvements December 31, 2025
November 20, 2013 December 1, 2033 $407,307 2.30% June 1 and December 1 December 1 Illinois Environmental Protection Agency
Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030 2031 2032 2033
Principal $
Interest
Totals
21,893 22,398 22,915 23,444 23,985 24,539 25,105 25,687
4,235 3,730 3,213 2,684 2,143 1,589 1,023 441
26,128 26,128 26,128 26,128 26,128 26,128 26,128 26,128
189,966
19,058
209,024
153
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements Installment Note Payable of 2015 December 31, 2025
March 27, 2015 June 1, 2029 $6,970,999 2.35% Quarterly Quarterly U.S. Bank National Association
Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029
Principal $
Interest
Totals
746,658 822,046 902,537 381,458
60,610 42,367 22,304 3,372
807,268 864,413 924,841 384,830
2,852,699
128,653
2,981,352
154
VILLAGE OF BUFFALO GROVE, ILLINOIS Long-Term Debt Requirements Installment Note Payable of 2023 December 31, 2025
May 1, 2023 April 30, 2032 $571,266 4.00% Annually Annually Axon Enterprise, Inc.
Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Date Payable at
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year 2026 2027 2028 2029 2030 2031 2032
Principal $
Interest
Totals
57,573 59,876 50,069 52,072 54,155 56,321 58,573
2,399 2,495 2,086 2,169 2,256 2,347 2,441
59,972 62,371 52,155 54,241 56,411 58,668 61,014
388,639
16,193
404,832
155
STATISTICAL SECTION (Unaudited) This part of the annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village’s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the Village’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the Village’s most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs.
156
VILLAGE OF BUFFALO GROVE, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2025 (Unaudited)
See Following Page
157
VILLAGE OF BUFFALO GROVE, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2025 (Unaudited)
2016
2017
2018
51,756,933 1,632,934 (36,592,629) 16,797,238
53,318,041 1,629,079 (36,022,097) 18,925,023
49,126,833 1,909,851 (41,165,382) 9,871,302
Business-Type Activities Net Investment in Capital Assets Restricted Unrestricted Total Business-Type Activities Net Position
35,494,070 — 11,034,826 46,528,896
36,802,425 — 10,837,462 47,639,887
36,831,535 — 11,296,427 48,127,962
Primary Government Net Investment in Capital Assets Restricted Unrestricted (Deficit)
87,251,003 1,632,934 (25,557,803)
90,120,466 1,629,079 (25,184,635)
85,958,368 1,909,851 (29,868,955)
63,326,134
66,564,910
57,999,264
Governmental Activities Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Governmental Activities Net Position
$
Total Primary Government Net Position
*Accrual Basis of Accounting Data Source: Audited Financial Statements
158
2019
2020
2021
2022
2023
2024
2025
50,663,992 1,839,449 (40,174,356) 12,329,085
50,847,075 4,004,829 (35,571,215) 19,280,689
51,402,847 4,920,687 (19,615,536) 36,707,998
49,965,851 10,537,281 (30,036,888) 30,466,244
54,846,913 7,450,035 (17,354,191) 44,942,757
74,625,942 9,392,806 (23,321,549) 60,697,199
83,586,500 9,628,773 (12,480,211) 80,735,062
37,080,189 — 11,417,357 48,497,546
38,677,933 — 16,662,780 55,340,713
44,312,875 — 20,140,083 64,452,958
53,308,186 890,233 22,409,315 76,607,734
54,553,279 — 25,108,129 79,661,408
58,923,878 — 24,409,176 83,333,054
61,804,920 — 24,980,888 86,785,808
87,744,181 1,839,449 (28,756,999)
89,525,008 4,004,829 (18,908,435)
95,715,722 4,920,687 524,547
103,274,037 11,427,514 (7,627,573)
109,400,192 7,450,035 7,753,938
133,549,820 9,392,806 1,087,627
145,391,420 9,628,773 12,500,677
60,826,631
74,621,402
101,160,956
107,073,978
124,604,165
144,030,253
167,520,870
159
VILLAGE OF BUFFALO GROVE, ILLINOIS Changes in Net Position - Last Ten Fiscal Years* December 31, 2025 (Unaudited)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
6,441,707 30,528,127 8,078,874 356,799 45,405,507
6,642,798 27,384,964 9,764,874 384,073 44,176,709
7,576,163 30,266,207 9,173,584 363,925 47,379,879
7,040,728 30,187,967 10,161,059 252,590 47,642,344
7,164,852 26,110,362 7,760,350 1,206,369 42,241,933
7,742,034 23,840,822 8,011,808 1,013,033 40,607,697
27,146,989 30,816,345 8,038,122 1,187,011 67,188,467
12,936,534 30,167,512 7,359,700 3,548,463 54,012,209
9,767,455 35,138,534 8,199,121 2,747,619 55,852,729
14,373,864 33,709,203 9,557,962 2,575,541 60,216,570
Business-Type Activities Water and Sewer Refuse Service Golf Courses Total Business-Type Activities Expenses
9,001,632 703,565 2,886,404 12,591,601
9,454,554 705,393 2,888,873 13,048,820
10,078,594 868,794 2,748,035 13,695,423
9,671,845 816,849 2,828,168 13,316,862
10,375,028 803,999 2,664,715 13,843,742
10,645,623 908,620 2,766,546 14,320,789
10,550,484 897,956 2,378,190 13,826,630
13,197,356 930,853 3,018,199 17,146,408
11,759,931 924,041 3,056,654 15,740,626
12,063,689 857,771 3,316,340 16,237,800
Total Primary Government Expenses
57,997,108
57,225,529
61,075,302
60,959,206
56,085,675
54,928,486
81,015,097
71,158,617
71,593,355
76,454,370
Program Revenues Governmental Activities Charges for Services General Government Public Safety Public Works Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues
1,855,506 1,718,647 1,151,594 1,281,732 — 6,007,479
2,148,760 1,687,759 1,209,784 1,271,602 1,478,015 7,795,920
1,748,555 1,686,390 1,134,383 1,309,324 — 5,878,652
2,001,018 1,796,065 1,141,998 1,664,537 254,814 6,858,432
1,658,024 1,675,331 1,409,408 3,781,784 2,002,648 10,527,195
3,612,362 1,951,101 254,557 3,157,451 1,642,292 10,617,763
3,569,113 2,506,306 (16,340) 5,181,407 1,610,891 12,851,377
3,393,303 2,473,489 22,203 3,229,239 259,079 9,377,313
2,989,198 3,785,678 — 6,174,517 197,573 13,146,966
3,550,431 3,674,206 50,652 3,072,796 5,700,429 16,048,514
Business-Type Activities Charges for Services Water and Sewerage Refuse Service Golf Courses Capital Grants and Contributions Total Business-Type Activities Program Revenues
10,304,638 1,135,748 2,240,868 94,326 13,775,580
11,060,938 970,268 2,201,460 — 14,232,666
10,832,782 1,053,759 2,042,747 250,622 14,179,910
10,663,766 1,058,282 2,039,584 350,000 14,111,632
14,589,445 1,148,303 2,469,642 341,254 18,548,644
15,909,163 1,122,716 2,843,203 — 19,875,082
15,710,593 1,072,015 2,718,412 300,000 19,801,020
17,822,403 1,181,549 3,361,957 — 22,365,909
16,043,682 1,208,326 3,722,951 — 20,974,959
16,809,591 1,110,014 3,793,907 — 21,713,512
Total Primary Government Program Revenues
19,783,059
22,028,586
20,058,562
20,970,064
29,075,839
30,492,845
32,652,397
31,743,222
34,121,925
37,762,026
Expenses Governmental Activities General Government Public Safety Public Works Interest on Long-Term Debt Total Governmental Activities Expenses
$
160
2016 Net (Expense) Revenue Governmental Activities Business-Type Activities
2017
2018
2019
2020
2021
2022
2023
2024
2025
$ (39,398,028) (36,380,789) (41,501,227) (40,783,912) (31,714,738) (29,989,934) (54,337,090) (44,634,896) (42,705,763) 1,183,979 1,183,846 484,487 794,770 4,704,902 5,554,293 5,974,390 5,219,501 5,234,333
(44,168,056) 5,475,712
(38,214,049) (35,196,943) (41,016,740) (39,989,142) (27,009,836) (24,435,641) (48,362,700) (39,415,395) (37,471,430)
(38,692,344)
15,034,583 9,095,471 4,994,426 1,513,254 2,659,554 1,115,360 1,110,503 65,600 1,596,806 1,062,190 1,385 38,249,132
15,510,127 9,229,254 4,843,251 1,586,128 2,532,662 1,256,919 1,019,807 153,816 1,409,537 958,315 8,758 38,508,574
15,980,771 10,159,866 5,221,827 1,761,326 2,805,912 969,039 1,087,497 292,340 1,884,579 53,715 — 40,216,872
16,321,876 9,945,744 5,852,397 1,304,425 2,763,471 1,024,769 1,340,564 807,330 2,694,331 1,186,788 — 43,241,695
17,035,362 9,829,765 6,422,488 906,071 2,643,697 989,118 987,097 305,366 1,176,737 (1,629,358) — 38,666,343
16,970,657 16,013,177 7,259,195 716,737 2,662,956 1,601,370 1,268,677 (33,773) 2,210,580 (1,955,738) — 46,713,838
17,037,557 18,309,654 8,846,932 666,083 2,688,047 2,001,475 1,753,939 334,289 1,771,784 (5,314,424) — 48,095,336
18,050,357 18,599,362 8,629,906 716,612 2,632,410 1,091,309 1,904,316 3,592,939 689,286 3,204,912 — 59,111,409
17,696,110 18,050,925 8,970,403 637,733 2,493,261 1,013,228 1,881,788 3,630,670 2,216,645 2,867,212 — 59,457,975
18,070,495 22,768,216 8,213,498 753,030 2,658,136 1,194,158 2,078,254 3,917,376 1,417,965 3,134,791 — 64,205,919
Business-Type Activities Investment Income Miscellaneous Transfers Total Business-Type Activities General Revenues
14,159 249,946 (1,062,190) (798,085)
492,132 393,328 (958,315) (72,855)
359,371 242,058 (53,715) 547,714
487,333 274,269 (1,186,788) (425,186)
472,703 36,204 1,629,358 2,138,265
394,698 417,516 1,955,738 2,767,952
457,233 408,729 5,314,424 6,180,386
666,334 372,751 (3,204,912) (2,165,827)
708,059 670,654 (2,867,212) (1,488,499)
689,611 422,222 (3,134,791) (2,022,958)
Total Primary Government General Revenues
37,451,047
38,435,719
40,764,586
42,816,509
40,804,608
49,481,790
54,275,722
56,945,582
57,969,476
62,182,961
(1,148,896) 385,894
2,127,785 1,110,991
(1,284,355) 1,032,201
2,457,783 369,584
6,951,605 6,843,167
16,723,904 8,322,245
(6,241,754) 12,154,776
14,476,513 3,053,674
16,752,212 3,745,834
20,037,863 3,452,754
(763,002)
3,238,776
(252,154)
2,827,367
13,794,772
25,046,149
5,913,022
17,530,187
20,498,046
23,490,617
Total Primary Government Net (Expense) Revenue General Revenues and Other Changes in Net Position Governmental Activities Taxes and Intergovernmental Property Tax Sales and Home Rule Tax Income and Use Tax Telecommunications Tax Utility Tax Property Transfer Tax Other Taxes and Intergovernmental Investment Income (Loss) Miscellaneous Transfers Gain on Sales of Assets Total Governmental Activities
Changes in Net Position Governmental Activities Business-Type Activities Total Primary Government Changes in Net Position *Accrual Basis of Accounting Data Source: Audited Financial Statements
161
VILLAGE OF BUFFALO GROVE, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2025 (Unaudited)
2016
2017
2018
167,957 229,953 8,511,306 16,143,726
132,843 252,729 7,758,348 18,902,476
132,134 607,411 6,827,236 17,039,974
25,052,942
27,046,396
24,606,755
1,632,934 — (3,859,964)
1,629,079 — (3,714,759)
1,302,440 — (268,260)
Total All Other Governmental Funds
(2,227,030)
(2,085,680)
1,034,180
Total Governmental Funds
22,825,912
24,960,716
25,640,935
General Fund Nonspendable Restricted Committed Unassigned
$
Total General Fund All Other Governmental Funds Restricted Committed Unassigned
*Modified Accrual Basis of Accounting Data Source: Audited Financial Statements
162
2019
2020
2021
2022
2023
2024
2025
159,494 484,881 8,313,902 18,939,974
571,654 760,160 9,052,502 20,134,162
583,442 865,185 14,326,113 22,485,209
138,071 1,094,350 28,857,031 17,701,070
142,941 1,273,347 36,791,201 18,522,000
147,993 1,867,542 30,609,676 19,839,238
163,786 1,569,197 38,010,415 20,394,591
27,898,251
30,518,478
38,259,949
47,790,522
56,729,489
52,464,449
60,137,989
1,354,568 261,007 —
19,842,763 300,803 —
12,040,606 857,573 —
11,943,487 1,977,875 —
7,200,791 2,460,432 (84,372)
7,550,696 3,434,383 (32,413)
25,225,121 3,107,440 —
1,615,575
20,143,566
12,898,179
13,921,362
9,576,851
10,952,666
28,332,561
29,513,826
50,662,044
51,158,128
61,711,884
66,306,340
63,417,115
88,470,550
163
VILLAGE OF BUFFALO GROVE, ILLINOIS Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2025 (Unaudited)
2016
2017
2018
15,034,583 9,701,271 326,177 11,843,812 3,025,628 1,504,400 65,600 1,610,746 43,112,217
15,510,127 9,816,523 1,763,982 3,043,453 330,475 11,709,919 153,816 1,456,876 43,785,171
15,980,771 10,494,959 344,389 12,623,735 2,820,773 1,600,263 292,340 1,884,579 46,041,809
5,693,142 27,407,019 6,978,307 8,252,604
5,774,748 25,776,184 8,101,888 1,362,213
6,804,142 26,732,460 8,710,363 1,502,272
525,000 371,456 49,227,528
1,275,000 401,609 42,691,642
1,315,000 370,202 45,434,439
Excess (Deficiency) of Revenues Over (Under) Expenditures
(6,115,311)
1,093,529
607,370
Other Financing Sources (Uses) Transfers In Transfers Out Disposal of Capital Assets Debt Issuance Premium of Debt Issuance Transfer to Escrow Agent Total Other Financing Sources (Uses)
3,402,595 (2,253,984) 1,385 6,125,000 100,778 — 7,375,774
4,204,943 (3,192,426) 28,758 — — — 1,041,275
9,068,487 (8,995,638) — — — — 72,849
Net Change in Fund Balances
1,260,463
2,134,804
680,219
Debt Service as a Percentage of Noncapital Expenditures
2.19%
4.24%
3.89%
Revenues Taxes Property Taxes Other Taxes Licenses and Permits Intergovernmental Fines and Forteitures Charges for Services Investment Income (Loss) Miscellaneous Total Revenues
$
Expenditures General Government Public Safety Public Works Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures
*Modified Accrual Basis of Accounting Data Source: Village Records
164
2019
2020
2021
2022
2023
2024
2025
16,321,876 9,835,616 362,747 14,074,544 3,121,111 1,695,784 807,330 2,694,331 48,913,339
17,035,362 8,970,163 301,321 18,417,351 3,137,339 1,479,257 305,366 1,176,737 50,822,896
16,970,657 12,777,682 301,917 21,544,173 2,221,275 3,294,828 (33,773) 2,210,580 59,287,339
17,037,557 14,524,352 416,436 26,534,076 2,533,385 3,109,258 334,289 1,771,784 66,261,137
18,050,357 13,751,250 361,283 23,310,983 2,570,411 2,957,301 3,592,939 689,286 65,283,810
17,696,110 13,118,502 357,246 26,300,926 3,853,905 2,563,725 3,630,670 2,216,645 69,737,729
18,070,495 15,310,829 393,747 31,127,688 3,800,002 3,081,540 3,888,357 1,300,634 76,973,292
6,293,156 27,561,835 7,341,611 3,689,375
6,834,043 28,891,545 6,973,359 9,571,463
8,919,334 29,352,949 6,324,738 8,500,778
29,296,182 30,178,107 6,775,205 20,584,538
10,804,209 30,513,656 6,813,495 13,669,168
10,507,753 32,279,399 6,941,940 21,533,522
11,930,686 33,323,559 7,336,844 22,785,203
1,210,000 325,743 46,421,720
1,299,030 1,196,044 54,765,484
2,550,445 1,200,773 56,849,017
2,570,990 1,374,751 90,779,773
2,717,078 2,163,093 66,680,699
2,681,819 1,800,380 75,744,813
2,716,858 2,910,965 81,004,115
2,491,619
(3,942,588)
2,438,322
(24,518,636)
(1,396,889)
(6,007,084)
(4,030,823)
5,397,700 (4,171,708) 163,085 1,449,275 — (1,457,080) 1,381,272
12,345,886 (13,975,244) — 24,000,000 2,720,164 — 25,090,806
13,079,260 (15,034,998) 13,500 — — — (1,942,238)
11,361,834 (16,676,258) — 37,530,000 — — 32,215,576
11,597,148 (8,392,236) 1,521,191 1,265,242 — — 5,991,345
25,270,377 (22,403,165) 250,647 — — — 3,117,859
13,252,601 (9,987,185) 40,364 24,060,000 1,718,478 — 29,084,258
3,872,891
21,148,218
496,084
7,696,940
4,594,456
(2,889,225)
25,053,435
3.48%
5.70%
7.72%
5.00%
9.20%
8.47%
9.62%
165
VILLAGE OF BUFFALO GROVE, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years December 31, 2025 (Unaudited)
Tax Levy Year
Residential Property
Commercial Property
2016
$ 1,299,550,777
$ 310,452,203
2017
1,336,606,286
318,894,119
3,900,196
2018
1,347,695,708
334,731,537
4,684,958
2019
1,445,252,883
365,037,719
5,211,860
2020
1,493,688,565
284,382,018
5,900,081
2021
1,395,918,824
346,305,368
5,803,116
2022
1,466,270,692
348,472,843
6,097,410
2023
1,555,899,082
354,467,306
1,138,212
2024
1,665,137,821
359,794,082
1,206,277
2025
1,812,212,231
391,111,472
—
Data Source: Office of the County Clerk
166
Industrial Property $
3,611,330
Tax Rate for Lake County
33.3%
0.921
Total Taxable Assessed Value
Estimated Actual Taxable Value
636,718
$ 1,614,251,028
$ 4,842,753,084
628,731
1,660,029,332
4,980,087,996
33.3%
0.908
653,520
1,687,765,723
5,063,297,169
33.3%
0.907
42,604
1,815,545,066
5,446,635,198
33.3%
0.890
691,021
1,784,661,685
5,353,985,055
33.3%
0.903
42,089
1,748,069,397
5,244,208,191
33.3%
0.904
689,345
1,821,530,290
5,464,590,870
33.3%
0.897
704,095
1,912,208,695
5,736,626,085
33.3%
0.862
672,215
2,026,810,395
6,080,431,185
33.3%
0.798
758,122
2,204,081,825
6,612,245,475
33.3%
0.746
Other Property $
Taxable Assessed Ratio of Total Assessed Value to Total Estimated Actual Value
167
$
VILLAGE OF BUFFALO GROVE, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years December 31, 2025 (Unaudited)
2016 Direct Rate Lake County - Village of Buffalo Grove Cook County - Village of Buffalo Grove Total Direct Tax Rate Overlapping Rates Lake County Forest Preserve Combined School Districts (102, 125, 532) Buffalo Grove Park District Vernon Area Public Library All Other (1) Cook County Forest Preserve Metropolitan Water Reclamation District of Greater Chicago Combined School Districts (21, 214, 512) Buffalo Grove Park District Indian Trails Public Library District All Other (2) Total Overlapping Tax Rates (3) Total Direct and Overlapping Rates
2017
2018
0.921 1.138 2.059
0.908 1.210 2.118
0.907 1.260 2.167
0.825 6.680 0.492 0.293 0.104
0.809 6.634 0.482 0.291 0.099
0.794 6.665 0.480 0.294 0.096
0.596 0.406 7.909 0.606 0.476 0.073 18.460
0.558 0.402 8.010 0.641 0.481 0.108 18.515
0.489 0.396 8.388 0.666 0.493 0.079 18.840
20.519
20.633
21.007
(1) Includes Road and Bridge and General Assistance for the Township herein. (2) Includes Northwest Mosquito Abatement, Consolidated Elections, Road and Bridge, and General Assistance for the Township herein. (3) Representative tax rates for other government units are from Vernon Township Tax Code 16-92, which the largest portion of the Village's 2023 EAV. Representative tax rates for other government units are from Cook County Tax Code 38077, which represents the largest portion of the Village's 2019 EAV within Cook County. Data Source: Cook County Tax Extension/Lake County Tax Extension Notes: Taxes Levied on a calendar year basis for collection in the subsequent year. The Village is home rule unit under the 1970 Illinois State Constitution and, as such, has no statutory tax rate limitations. N/A - Data Available
168
2019
2020
2021
2022
2023
2024
2025
0.890 1.136 2.026
0.903 1.165 2.068
0.904 1.273 2.177
0.897 1.103 2.000
0.862 1.023 1.885
0.798 1.049 1.847
0.746 N/A 0.746
0.776 6.459 0.465 0.293 0.091
0.780 6.754 0.478 0.304 0.093
0.777 6.952 0.491 0.312 0.095
0.762 7.186 0.509 0.320 0.096
0.754 7.712 0.519 0.321 0.131
0.713 7.530 0.497 0.312 0.127
0.677 6.367 0.461 0.297 0.120
0.513 0.389 7.450 0.584 0.446 0.100 17.566
0.511 0.378 7.474 0.612 0.458 0.068 17.910
0.504 0.382 8.326 0.690 0.497 0.094 19.120
0.512 0.374 7.397 0.628 0.454 0.064 18.302
0.461 0.345 7.598 0.619 0.463 0.102 19.025
0.459 0.340 7.915 0.652 0.471 0.029 19.045
N/A N/A N/A N/A N/A N/A 7.922
19.592
19.978
21.297
20.302
20.910
20.892
8.668
169
VILLAGE OF BUFFALO GROVE, ILLINOIS Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2025 (Unaudited)
Taxpayer Chevy Chase Business Park Ltd Penobscot Management LLC Newport Equities Rexam, Inc. BGA Residential LLC G&I X Windbrooke Crossing LLC SL Buffalo Grove LLC Hamilton Partners Inc. BRI 1862 Riverwalk II LLC Chicago Food Property LLC Millbrook Riverwalk South LLC Aptakisic Creek Corporate Park Arthur Rodgers and Company Manufactures Life Insurance
Taxable Assessed Value $ 31,457,568 14,405,425 11,007,436 10,717,628 10,606,622 10,549,762 9,780,834 9,773,951 9,165,736 7,902,464
2025
2016
Percentage of Total Village Taxable Assessed Rank Value
Percentage of Total Village Taxable Assessed Rank Value
1 2 3 4 5 6 7 8 9 10
1.55% 0.71% 0.54% 0.53% 0.52% 0.52% 0.48% 0.48% 0.45% 0.39%
MRFEVF-Winbrooke LP
Total
125,367,426
6.19%
Taxable Assessed Value $ 27,410,584 9,036,652
1 5
1.70% 0.56%
12,230,070 9,109,603
2 4
0.76% 0.56%
9,532,000 8,264,447 7,827,747 7,487,894 6,310,270 6,053,195
3 6 7 8 9 10
0.59% 0.51% 0.48% 0.46% 0.39% 0.37%
103,262,462
6.38%
Data Source: Lake and Cook County Clerk's Office Note: Based on 2025 EAV for Lake County and 2024 EAV for Cook County, the most current available.
170
VILLAGE OF BUFFALO GROVE, ILLINOIS Property Tax Levies and Collections - Last Ten Tax Levy Years December 31, 2025 (Unaudited)
Lake County Collected within the Fiscal Year of the Levy Percentage Amount of Levy
Cook County Collected within the Fiscal Year of the Levy Percentage Amount of Levy
Taxes Levied for the Fiscal Year
Collections in Subsequent Years
11,761,365
99.82%
$ 3,811,228
$ 3,748,763
98.36%
$
Fiscal Year
Taxes Levied for the Fiscal Year
2016
$ 11,783,047
2017
12,055,130
12,055,130
100.00%
4,022,627
3,916,453
2018
12,296,750
12,273,540
99.81%
4,177,992
2019
12,767,830
12,528,898
98.13%
2020
12,663,437
12,618,734
2021
12,663,437
2022
Total Collections to Date Percentage Amount of Levy
—
$ 15,510,128
99.46%
97.36%
—
15,971,583
99.34%
4,048,337
96.90%
—
16,321,877
99.07%
4,333,453
4,245,195
97.96%
—
16,774,093
98.09%
99.65%
4,455,175
4,312,066
96.79%
—
16,930,800
98.90%
12,618,734
99.65%
4,455,175
4,312,066
96.79%
—
16,930,800
98.90%
12,621,129
12,561,544
99.53%
4,494,542
4,459,000
99.21%
—
17,020,544
99.44%
2023
12,716,520
12,684,686
99.75%
4,455,173
4,407,610
98.93%
—
17,092,296
99.54%
2024
12,883,519
12,794,515
99.31%
4,266,905
4,126,573
96.71%
—
16,921,088
98.66%
2025
12,830,478
12,798,272
99.75%
4,388,422
4,153,534
94.65%
—
16,951,806
98.45%
$
Data Source: Office of the County Clerk of Cook/ Office of the County Clerk of Lake
171
VILLAGE OF BUFFALO GROVE, ILLINOIS Sales Base Tax - Last Ten Fiscal Years December 31, 2025 (Unaudited)
2016
2017
2018
86,125 1,481,195 1,118,330 92,409 369,583 2,074,008 867,250 1,986,578 2,231,299 220,927
— 1,557,474 1,107,878 68,075 380,907 2,357,551 1,007,356 1,568,024 2,573,323 200,727
— 1,836,131 1,133,048 66,797 1,250,788 2,202,029 1,068,115 1,536,061 2,470,229 180,646
10,527,704
10,821,315
11,743,844
Village Direct Sales Tax Rate
1.0%
1.0%
1.0%
Village Home Rule Tax Rate
1.0%
1.0%
1.0%
General Merchandise Food Drinking and Eating Places Apparel Furniture, Households and Radio Lumber, Building and Hardware Automobile and Filling Stations Drugs and Misc. Retail Agriculture and All Others Manufacturers
$
Total
Data Source: Illinois Department of Revenue
172
2019
2020
2021
2022
2023
2024
2025
— 2,419,704 1,203,642 167,211 1,294,886 2,119,185 1,089,620 1,481,357 2,484,560 213,851
66,754 2,485,816 987,063 57,933 1,482,689 2,267,449 848,373 1,515,668 2,303,808 170,291
133,228 2,772,036 1,166,982 94,887 2,132,025 3,132,250 1,059,622 3,054,824 2,364,628 192,379
127,776 3,649,009 1,189,430 101,998 2,079,488 3,612,201 1,178,431 3,188,075 2,902,778 247,896
141,693 3,518,435 1,243,306 87,149 1,834,845 3,794,887 982,187 3,313,520 3,604,098 81,468
167,322 3,541,406 1,299,792 89,836 1,637,808 3,153,608 865,086 3,469,951 3,698,402 206,342
229,962 3,434,024 1,437,726 270,508 836,652 3,317,491 994,359 4,428,859 7,041,047 967,043
12,474,016
12,185,844
16,102,861
18,277,082
18,601,588
18,129,553
22,957,671
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
173
VILLAGE OF BUFFALO GROVE, ILLINOIS Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years December 31, 2025 (Unaudited)
Fiscal Year
Village Direct Rate
Village Home Rule Rate
State of Illinois Sales Tax Rate
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5%
Data Source: Illinois Department of Revenue
174
VILLAGE OF BUFFALO GROVE, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2025 (Unaudited)
See Following Page
175
VILLAGE OF BUFFALO GROVE, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2025 (Unaudited)
Governmental Activities General Obligation Bonds
Fiscal Year
Installment Note
TIF Revenue Note
Leases Payable
Subscriptions Payable
IEPA Loan
15,881,408 $
— $
— $
—$
— $
366,060
2017
14,581,706
—
—
—
—
348,233
2018
13,243,707
—
—
—
—
329,993
2019
11,936,027
—
—
—
—
311,332
2020
37,350,765
—
—
—
—
292,240
2021
34,612,580
—
—
—
—
272,708
2022
53,240,666
—
19,000,000
—
—
252,725
2023
50,318,820
497,228
19,000,000
642,201
984,191
232,281
2024
47,376,874
443,998
19,000,000
571,747
2,523,650
211,365
2025
70,178,590
388,639
19,000,000
501,069
2,369,400
189,966
2016
$
(1) See the Schedule of Demographic and Economic Statistics for personal income and population data. (2) See the Schedule of Assessed Value and Actual Value of Taxable Property for equalized assessed valuation Data Source: Village Records Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
176
Business-Type Activities Installment Note $
Leases Payable
Subscriptions Payable
Total Primary Government
Ratio of Total Outstanding Debt to Equalized Assessed Valuation (2)
Total Outstanding Debt Per Capita (1)
Debt Outstanding as a Percentage of Personal Income
6,894,447 $
— $
— $ 23,141,915
0.48%
557.64
1.19%
6,638,399
—
—
21,568,338
0.43%
523.17
1.11%
6,341,869
—
—
19,915,569
0.39%
487.49
0.98%
6,001,817
—
—
18,249,176
0.34%
450.66
0.84%
5,615,015
—
—
43,258,020
0.81%
1,068.26
2.00%
5,178,045
—
—
40,063,333
0.76%
927.13
1.70%
4,687,283
—
—
77,180,674
1.41%
1,813.07
3.24%
4,138,887
737,330
329,616
76,880,554
1.34%
1,809.72
3.31%
3,528,795
600,847
313,388
74,570,664
1.23%
1,731.30
3.21%
2,852,699
459,081
295,891
96,235,335
1.46%
2,247.86
3.47%
177
VILLAGE OF BUFFALO GROVE, ILLINOIS Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2025 (Unaudited)
General Obligation Bonds
Fiscal Year 2016
$
15,881,408
Less: Amount Available for Debt Service $
—
Total $
Percentage of Estimated Actual Value of Taxable Property (1)
Per Capita (2)
15,881,408
0.33%
382.68
2017
14,581,706
—
14,581,706
0.29%
353.70
2018
13,243,707
—
13,243,707
0.26%
324.18
2019
11,936,027
803
11,935,224
0.22%
294.74
2020
37,350,765
231,373
37,119,392
0.69%
916.66
2021
34,612,580
247,676
34,364,904
0.66%
795.26
2022
53,240,666
32,249
53,208,417
0.97%
1,249.93
2023
50,318,820
—
50,318,820
0.88%
1,184.47
2024
47,376,874
—
47,376,874
0.78%
1,099.95
2025
70,178,590
—
70,178,590
3.46%
1,639.23
(1) See the Schedule of Assessed Value and Actual Value of Taxable Property for property value data. (2) See the Schedule of Demographics and Economic Statistics for population data. Data Source: Village Records Note: Details regarding the Village's outstanding debt can be found in the Notes to the Financial Statements.
178
VILLAGE OF BUFFALO GROVE, ILLINOIS Schedule of Direct and Overlapping Governmental Activities Debt December 31, 2025 (Unaudited)
Governmental Unit Village
$
Overlapping Debt: School Districts Cook County School District #21 Aptakisic-Tripp Community Consolidated #102 Lincolnshire-Half Day District #103 Adlai E. Stevenson H.S. District #125 Wheeling Township H.S. District #214 Harper Community College #512 College of Lake County #532 Total School Districts
Gross Debt
Percentage to Debt Applicable to Village (1)
92,437,698
100.00%
70,375,000 58,930,000 5,710,000 28,720,000 13,270,000 196,740,000 65,840,000
17.04% 74.90% 12.24% 37.99% 3.67% 1.72% 5.09%
439,585,000
Other than School Districts Lake County Lake County Forest Preserve Cook County Cook County Forest Preserve Metropolitan Water Reclamation District Buffalo Grove Park District Wheeling Park District
119,280,000 156,220,000 1,760,191,750 70,975,000 2,555,076,024 14,276,000 6,940,000
Village's Share of Debt $
92,437,698
11,990,525 44,139,384 698,801 10,910,586 486,947 3,374,226 3,351,422 74,951,891
4.90% 4.90% 0.21% 0.21% 0.21% 95.70% 6.14%
5,793,605 7,587,835 3,525,865 142,171 5,203,269 13,729,537 447,047
Total Other than School Districts
4,682,958,774
36,429,329
Total Direct and Overlapping Debt
5,214,981,472
203,818,918
(1) Determined by ratio of assessed valuation of property subject to taxation in the Village to valuation of property subject to taxation in overlapping unit. Overlapping debt percentages based on 2025 EAV for Lake County and 2024 EAV for Cook County, the most current data available. Data Source: Lake and Cook County Clerks and MSRB's Electronic Market Access Website (EMMA)
179
VILLAGE OF BUFFALO GROVE, ILLINOIS Schedule of Legal Debt Margin December 31, 2025 (Unaudited)
The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois constitution governs computation of legal debt margin. The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by some home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property...(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum...shall not be included in the foregoing percentage amounts. To date the General Assembly has set no limits for home rule municipalities.
180
VILLAGE OF BUFFALO GROVE, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2025 (Unaudited)
Fiscal Year
Population
Equalized Valuation
2016
41,500
$ 1,614,251,028
2017
41,226
2018
Per Capita Personal EAV
Personal Income
Per Capita Income
Unemployment Rate
38,898 $ 1,949,794,500 $
46,983
4.2%
1,660,029,332
40,267
1,938,570,198
47,023
4.3%
40,853
1,687,765,723
41,313
2,041,301,851
49,967
5.7%
2019
40,494
1,815,545,066
44,835
2,161,569,720
53,380
3.3%
2020
40,494
1,784,661,685
44,072
2,159,342,550
53,325
3.0%
2021
43,212
1,748,069,397
40,453
2,356,263,936
54,528
13.7%
2022
42,569
1,821,530,290
42,790
2,379,862,514
55,906
3.8%
2023
42,482
1,912,208,695
45,012
2,323,156,444
54,686
3.5%
2024
43,072
2,026,810,395
47,056
2,323,156,444
53,937
4.2%
2025
42,812
2,204,081,825 **
51,483
2,775,776,763
64,836
3.8%
*
$
*U.S. Census Bureau estimate for 2025. ** Most recent data available. Data Source: U.S. Census Bureau, Illinois Department of Employment Security, and Lake and Cook County Clerk's offices.
181
VILLAGE OF BUFFALO GROVE, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2025 (Unaudited)
Employer
2025
2016
Percentage of Total Village Employees Rank Population
Percentage of Total Village Employees Rank Population
Siemens Building Technologies ESS Plexus Corp Veritas Document Solutions US LBM Holdings, LLC Village of Buffalo Grove Vapor Bus International Crosscom National, LLC Schultes Precision Manufacturing CORPTAX, Inc I.S.I. Dell Intelligent Hospital Solutions Leica Microsystems, Inc Berry Plastics
1,800 550 370 300 250 217 200 170 170 160
Total
4,187
1 2 3 4 5 6 7 8 9 10
4.20% 1.28% 0.86% 0.70% 0.58% 0.51% 0.47% 0.40% 0.40% 0.37%
9.77%
1,800 550 370 300
1 3 4 5
4.34% 1.33% 0.89% 0.72%
200
8
0.48%
1,200 225 200 200 180
2 6 7 9 10
2.89% 0.54% 0.48% 0.48% 0.43%
5,225
Data Source: 2025 Illinois Services Directory and the 2025 Illinois Manufacturers Directory.
182
12.58%
VILLAGE OF BUFFALO GROVE, ILLINOIS Full-Time Equivalent Employees by Function/Program - Last Ten Fiscal Years December 31, 2025 (Unaudited)
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183
VILLAGE OF BUFFALO GROVE, ILLINOIS Full-Time Equivalent Employees by Function/Program - Last Ten Fiscal Years December 31, 2025 (Unaudited)
2016
2017
2018
General Government Administration Village Managers Office Communications Human Resources Administrative Services Finance Community Development
5.0 — 2.0 — 9.0 12.0
5.5 — 2.0 — 9.0 14.0
5.5 — 2.0 — 9.0 15.0
Public Safety Police Full-Time Police Officers Community Service Officers Civilians
63.0 3.0 15.5
61.0 2.0 16.0
61.0 2.0 16.0
Fire Full-Time Firefighters/Paramedics Civilians
59.0 1.0
58.0 4.5
59.0 5.0
Public Works Public Works Administration Streets/Forestry Water/Sewer Central Garage Building Maintenance
6.0 20.0 9.0 5.5 6.0
12.0 20.0 12.0 5.5 4.5
11.5 20.0 12.0 5.5 4.5
Recreation Administration Grounds Maintenance
4.0 0.0
4.0 0.0
4.0 0.0
Totals
220.0
230.0
232.0
Recreation Seasonal
30.0
30.0
30.0
Data Source: Village Finance Department
184
2020
2019
2021
2022
2023
2024
2025
5.5 — 2.0 — 8.0 13.0
4.5 — 2.0 — 9.0 13.0
4.5 — 2.0 — 8.0 10.0
5.0 — 2.0 3.5 7.0 10.0
3.0 2.0 2.5 3.5 7.0 12.0
3.0 2.0 2.5 3.0 7.0 12.0
3.0 2.0 2.5 3.0 7.0 12.0
63.0 2.0 20.0
60.0 2.0 16.0
58.0 2.0 12.5
60.0 2.0 12.0
62.0 2.0 12.0
62.0 2.0 12.0
62.0 2.0 12.0
56.0 7.0
56.0 9.0
57.0 4.5
57.0 5.0
57.0 5.5
57.0 5.5
57.0 5.5
10.0 17.0 13.0 5.5 4.5
11.0 17.0 12.0 5.5 4.5
11.0 15.0 12.0 5.5 3.0
11.0 15.0 12.0 5.5 3.0
11.0 15.0 12.0 5.5 4.0
11.0 13.0 13.0 5.0 5.0
11.0 13.0 13.0 5.0 5.0
2.0 0.0
2.0 0.0
2.0 0.0
2.0 0.0
2.0 0.0
2.0 0.0
2.0 0.0
228.5
223.5
207.0
212.0
218.0
217.0
217.0
29.0
38.0
38.0
38.0
38.0
37.5
38.0
185
VILLAGE OF BUFFALO GROVE, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2025 (Unaudited)
2016
2017
2018
General Government Building and Zoning Building Permits Issued Building Inspections Conducted Property Maintenance Inspections Conducted
2,957 9,053 2,160
2,567 6,692 1,954
2,502 6,817 1,902
Public Safety Police Physical Arrests Parking Violations Traffic Violations DUI Arrests Vehicle Crashes
521 5,754 6,054 74 1,473
441 6,781 5,310 87 1,294
452 5,748 6,054 85 1,353
Fire Ambulance Calls/EMS Service Calls Fire Calls Auto Aid/Mutual Aid
3,160 309 1,279 987
3,201 293 1,082 1,045
3,145 309 1,257 967
11.40
2.76
0.97
46
46
46
53,599
51,138
48,770
19 3.60 5.54
3 3.23 5.98
23 3.49 5.69
Public Works Streets Street Resurfacing (Miles) Parks and Recreation Park Sites Golf Course - Combined Golf Rounds Played - Paid Water New Connections (Tap ons) Average Daily Consumption (1) Peak Daily Consumption (1)
(1) - Millions of Gallons Data Source: Various Village Departments
186
2019
2020
2021
2022
2023
2024
2025
3,443 7,361 2,254
2,697 5,540 1,856
3,339 6,097 1,543
3,127 8,543 1,135
3,141 8,782 1,725
2,919 7,979 1,807
2,434 5,852 1,392
406 3,404 4,844 74 1,459
283 2,185 3,439 54 829
233 2,180 3,760 44 948
401 1,481 4,934 45 941
623 1,742 4,903 67 1,404
355 1,532 4,393 89 995
410 1,364 4,657 46 1,036
3,145 409 1,253 1,193
3,276 249 1,096 1,198
3,444 256 1,209 790
3,656 373 1,135 786
3,738 278 1,223 807
3,626 381 1,122 681
3,808 350 1,335 709
2.64
4.97
4.50
2.75
—
1.78
5.72
46
46
46
49
49
50
50
44,000
58,297
71,617
71,773
73,506
82,937
80,217
11 3.13 4.83
23 3.33 4.97
34 3.51 5.67
67 3.62 6.39
32 3.51 4.99
7 3.36 5.31
3 3.40 5.71
187
VILLAGE OF BUFFALO GROVE, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2025 (Unaudited)
2016 Public Safety Police Stations Vehicles Fire Stations Vehicles*
2017
2018
1 29
1 31
1 30
3 20
3 20
3 20
Public Works Streets Street (Miles) Streetlights
118.22 2,789
114.02 2,790
114.02 2,755
Water Water Mains Fire Hydrants
181.31 2,501
181.97 2,514
185.99 2,507
Wastewater Sanitary Sewers
139.92
139.96
141.60
*Includes fire engines/towers, ambulances, and staff cars Data Source: Various Village Departments
188
2019
2020
2021
2022
2023
2024
2025
1 29
1 30
1 31
1 31
1 34
1 37
1 32
3 20
3 20
3 20
3 20
3 23
3 24
3 24
113.90 2,437
110.83 3,115
116.07 2,958
116.07 2,559
116.90 2,927
116.29 2,927
119.97 3,040
186.19 2,507
188.60 2,584
185.43 2,607
185.36 2,628
188.53 2,606
188.50 2,611
188.91 2,865
135.94
137.38
137.08
137.08
137.68
143.68
142.22
189
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS
190
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS June 5, 2026 The Honorable Village President Members of the Board of Trustees Village of Buffalo Grove, Illinois We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo Grove (the Village), Illinois, as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements, and have issued our report thereon dated June 5, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Village’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Village’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
191
Village of Buffalo Grove, Illinois June 5, 2026 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
LAUTERBACH & AMEN, LLP
192