Fiscal year 2011 year end financial review

1. Fiscal Year 2011
Year-End Financial Review
February 28, 2012

2. Executive Summary
• All figures in this report have been updated, but are unaudited. Annual
audited report distribution date is anticipated in June.
• General Fund revenues finished below budget (unfavorable variance)
by approximately $698K or 0.9%.
• General Fund expenditures finished below budget (favorable variance)
by approximately $2.5M or 3.3%.
• The result is a General Fund net surplus of approximately $1.8M.
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3. General Fund Revenues
• Property Taxes came in at approximately $16M compared to $16.5M
budgeted, or about $500K under budget.
• Approximately $750K of the $1.8M General Fund surplus was due to
revenue from the sale of land on Chicago Avenue, which is considered
one-time revenue.
• Real Estate Transfer Taxes came in at approximately $2M or about
$500K above budget.
• Income Taxes came in at approximately $4.9M or about $200K above
budget.
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4. General Fund Revenues
• Building Permits came in at approximately $1.8M or about $700K
below budget.
• Utility Taxes (electric, natural gas, telecommunications) came in at
approximately $6.3M or $600K under budget. This was primarily due
to the Natural Gas Distribution Tax.
• Sales Tax came in at $12.2M or about $300K above budget.
• Total revenue came in at approximately $73.2M or about $700K below
budget.
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5. General Fund Expenditures
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• Total expenditures
came in at
approximately $71.4M
or 3.3% below budget.
• Police expenditures
exceeded budget by
0.7% primarily due to
higher than anticipated
payouts and overtime.
• The $1.8M General
Fund surplus for FY
2011 increased fund
balance from $14.6M to
$16.4M.
Expenditures Budget Actual
% of
Budget
Legislative 523,131$ 514,586$ 98.4%
City Administration 1,675,952 1,329,524 79.3%
Law Department 828,120 816,863 98.6%
Administrative Services 8,206,488 7,030,956 85.7%
Community and Economic Dev. 2,824,205 2,677,868 94.8%
Police Department 20,263,642 20,400,229 100.7%
Fire & Life Safety Services 11,192,783 11,005,350 98.3%
Health Department 2,135,313 1,989,997 93.2%
Public Works 6,862,268 6,576,242 95.8%
Public Library 3,708,359 3,650,508 98.4%
Parks, Rec. & Comm. Serv. 15,653,221 15,407,209 98.4%
Total Expenditures 73,873,482$ 71,399,332$ 96.7%

6. 12/31/11 Fund Balance Estimate
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General
Fund
General
Fund (Revised)
Audited unrestricted, undesignated fund balance @ 2/28/11 $ 14,581,963 $ 14,581,963
Audited unrestricted, designated fund balance @ 2/28/11 $ 5,426,913 $ 5,426,913
Total Unrestricted Fund Balance @ 2/28/11 $ 20,008,876 $ 20,008,876
Unaudited General Fund revenues FY 2011 $ 73,175,352 $ 73,175,352
Change in Property Tax Receivables $ (6,500,000)
Unaudited General Fund expenditures FY 2011 $ 71,399,332 $ 71,399,332
Unaudited net surplus (deficit) FY 2011 $ 1,776,020 $ (4,723,980)
Estimated unrestricted, fund balance @ 12/31/11 $ 21,784,896 $ 15,284,896
Estimated unrestricted, cash balance @ 12/31/11 $ 10,572,661 $ 10,572,661

7. Other Funds
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8. Other Fund Revenue – Major Variances
• The unfavorable variance (actual revenue less than budgeted revenue)
of $3.7M in the Neighborhood Stabilization Fund is primarily due to
lower than anticipated grant proceeds and programmatic revenue.
• The following funds ended FY 2011 with unfavorable revenue
variances due to lower than anticipated intergovernmental program
entitlements:
– CDBG Fund - $646K
– HOME Fund - $489K
• The unfavorable variance of $243K in the Economic Development
Fund is due to lower than anticipated hotel and amusement tax
revenue.
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9. Other Fund Revenues – Major Variances
• The favorable variance of $350K in the Washington National TIF Fund
is primarily due to higher than anticipated property tax increment.
• The unfavorable variance of $4.9M in the Capital Improvement Fund
was due to budgeted grants which were not awarded to the City.
• The unfavorable variance of $1.9M in the Parking Fund was primarily
due to reserve funds for future capital repairs which were not collected.
• The favorable variance of $2.3M in the Water Fund was primarily due
to debt proceeds and other miscellaneous program revenues.
• The favorable variance of $5.1M in the Sewer Fund was primarily due
to higher than anticipated operational revenue.
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10. Other Fund Expenditures
• The following funds ended FY 2011 with favorable expenditure
variances due to lower than anticipated development activity
expenses:
– Neighborhood Stabilization Program 2 Fund - $3.7M
– CDBG Fund - $477K
– Economic Development Fund - $160K
– HOME Fund - $484K
– Affordable Housing Fund - $221K
• The favorable variance of $219K in the Motor Fuel Tax Fund was
primarily due to favorable bid pricing for street resurfacing projects.
• The favorable variance of $5.4M in the Capital Improvement Fund was
primarily due to grant-funded projects which were deferred when the
City was not awarded the anticipated grants.
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11. Other Fund Expenditures
• The following funds ended FY 2011 with favorable variances primarily
due to lower than anticipated capital project expenditures:
– Emergency 911 Fund - $197K
– Washington National TIF Fund - $796K
– West Evanston TIF Fund - $426K
– Special Assessment Fund - $867K
– Fleet Fund - $1.2M
• The favorable variance of $732K in the Insurance Fund was primarily
due to the reduced premium costs for the City.
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12. 12
Other Fund Expenditures
• The following enterprise funds ended FY 2011 with favorable variances
due to lower than anticipated capital and operating expenditures:
– Parking Fund - $5.8M
– Water Fund - $3.6M
– Sewer Fund - $764K
• The unfavorable variance of $245K in the Solid Waste Fund was
primarily due to higher than anticipated expenditures associated with
the City’s refuse, recycling and yard waste program.

13. Fiscal Year 2011 Summary
• General Fund
– FY 2011 revenues were close to budget and expenditures were held below budget
– FY 2011 surplus of approximately $1.8M (without receivable adjustment)
– General Fund Budget savings/one-time Capital expenses discussion in March.
• Capital Improvement Program
– Capital revenues and expenditures for FY 2011 were below budget
– $4M of anticipated project grants were not awarded to City
• Enterprise Funds
– Parking, Water and Sewer Funds ended FY 2011 with surpluses
– Solid Waste Fund ended FY 2011 with a $1.4M deficit.
• Pension funding remains a major financial concern.
• Moody’s and Fitch rating services have affirmed the City’s Aaa and
AAA ratings respectively.
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14. Questions?