Itasca reports $15 million-plus favorable variance as capital projects lag; interest boosts revenues

The Itasca Village Board heard a year-end financial summary on June 17 showing roughly $15 million more cash than budgeted, driven largely by underspending on capital projects and stronger-than-expected interest income.

Jennifer Mitchell, introduced to the board by Trustee Powers as the presenter, told trustees that "as far as revenues are concerned, we are about 2,500,000.0 ahead on revenues in all funds" and that "as far as the expenditures are concerned, we are $12,500,000 under in expenditures." Mitchell said interest revenue was the single largest revenue driver, reporting it was about $1,140,000 over budget.

The nut graf: the combined effect of delayed capital spending and higher interest receipts produced the favorable variance, but staff said much of the underspend is timing-related and will be spent in the coming fiscal year.

Mitchell explained the composition of the variance: sales tax, utility tax and building permit receipts exceeded expectations, while several capital improvement projects — notably street and other CIP projects — were delayed. She said the corporate fund, motor fuel tax fund, downtown TIF fund and water/sewer capital funds accounted for the largest variances. On capital projects, Mitchell summarized that the largest single driver was underspending on street projects, which she estimated at about $7,400,000.

Trustees pressed for details about whether the underspend reflected delayed invoices or canceled projects. Trustee Christensen asked whether the $12 million difference was a payment delay; Mitchell said it was “primarily driven by capital projects” that had been deferred or not yet invoiced. Trustee Powers and other trustees noted that the board approved spending down reserves in the budget but the timing shifted: Trustee Powers concluded that "the majority are getting carried over into the new fiscal year. So we're gonna spend it. It's more a delay in timing of when we spend these things."

Mitchell cautioned the figures were preliminary: she said there were still invoices and adjusting entries to process, so the numbers represent a current, but not final, snapshot. She also walked trustees through the pooled cash chart showing an increase from about $38 million to $42 million to date.

The presentation included fund-level detail: sales tax was roughly $378,000 over budget, utility tax about $373,000 over, building permits about $439,000 over and use tax and replacement tax were down (use tax about $62,000 down) due to changes in state law that staff said had been incorporated into next year’s budget.

Board members and staff emphasized that the variance largely reflected timing issues — projects deferred, grants pending or bids rejected — rather than permanent savings. Mitchell listed several deferred or carried-over projects: rejected bids for Ardmore water main; delayed invoices from IDOT on Bloomingdale Road; Northside infrastructure work awaiting grant or loan processing; and other CIP items the village expects to complete next year.

Trustees asked about where supporting documentation and line-item detail could be found; Mitchell pointed to the budget packet and the fund cover pages and said staff would provide additional references on request.

Ending: Trustees thanked Mitchell for the presentation and noted the figures will inform next year’s capital planning; staff said they will continue to provide updates as accounting adjustments are finalized.