Riverwoods finance director reports $1 million general-fund surplus at midyear
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Summary
Village Finance Director Vasquez told the Board of Trustees the unaudited second-quarter 2025 financials show a roughly $1,000,000 general-fund surplus driven by strong sales-tax performance, security deposits and a matured bond; water and capital funds face timing and capital planning issues.
The Village of Riverwoods' finance director reported an unaudited general-fund surplus of about $1,000,000 at the close of the second quarter, citing stronger-than-expected sales-tax receipts and one-time items. Director Vasquez presented the second-quarter financial report during the Board of Trustees meeting.
Vasquez said the village is "overall trending ahead of our budgeted target for the year, with over 61% of budgeted revenue received at the halfway point," noting that property-tax receipts and stronger sales-tax collections helped push general-fund revenue to roughly 63% of annual budget at midyear. "In fact, both home rule and municipal sales taxes are currently exceeding 70% of budget at this point in the year," Vasquez said.
The report attributed most of the surplus to three items: robust sales-tax receipts, about $170,000 being held as security deposits in the building department, and a $250,000 matured bond the village received earlier in the year. Vasquez said that without the security deposits or the matured bond, general-fund revenue would be about 52% of budget and the surplus would be closer to $590,000.
Vasquez reviewed other funds and near-term budget risks. Motor Fuel Tax (MFT) revenues were "right on target at 50%" but related MFT expenditures are anticipated later in the year for the Saunders Road project. The water fund was at about 35% of budgeted revenue at midyear; Vasquez said quarterly billing and summer usage typically increase that figure in later quarters and that water purchases from Northbrook will raise costs July–October. He noted the water fund entered 2025 about $800,000 below its $2,000,000 target fund balance because of significant 2024 capital spending and said he plans to discuss water rates at the upcoming committee workshop to move toward the target fund balance.
The sewer fund showed 67% of budgeted revenue and 13% of expenditures at midyear; Vasquez said much sewer spending is scheduled later in the year and that the fund currently exceeds its balance target. He also flagged a long-term capital need including lift-station replacements and a discussed $1,000,000 capital project currently planned for 2029.
On capital funding, the village budgeted a $2,000,000 transfer from the general fund to the capital fund in 2025 (matching a similar 2024 transfer); Vasquez said neither the anticipated transfer nor grant revenue had occurred by midyear and that the village budgeted a high-expenditure scenario for capital projects, so not all listed projects may proceed in 2025.
Vasquez closed by noting the cash report reflected nearly $600,000 in property-tax receipts during the quarter and a $1,000,000 increase in cash vs. the prior quarter. Trustee Clayton asked whether sales-tax gains were concentrated in particular sectors; Vasquez said he had requested confidential sales-tax detail and would review it when available.
The report presented was unaudited and the director repeatedly described timing and one-time items that affected midyear results; he said more detail will be available at the fall finance workshop and at the committee-of-the-whole meeting where rate and capital-transfer decisions will be discussed.
