Kankakee audit shows stronger fund balances; city reviews February financial report

Kankakee City’s audit firm presented the city’s audited financial statements for the year ended April 30, 2024, to the Budget Committee and reported the statements were materially correct, while city staff reviewed February 2025 monthly financial reports showing revenues generally outperforming expenditures.

The audit presentation by Dale Garrett of Abraham Eshelman and Garrett concluded that “we believe the financial statements are materially correct,” and highlighted capital assets (roads, buildings, infrastructure) as the largest portion of city assets. Auditor Carlos Marin told the committee that net pension liabilities remain the largest liability, accounting for just over half of total liabilities on the citywide balance sheet.

The audit packet showed the general fund balance increased by $16,700,000 over the last three fiscal years — roughly $4,000,000 per year on average — driven primarily by higher-than-budgeted intergovernmental receipts and investment income, according to the auditors. “General fund has been performing quite well,” Carlos Marin said during the presentation.

Jennifer Doss, who presented the enterprise/ESU (enterprise services unit) results, said ESU net position rose by about $6,600,000 for the year after accounting for depreciation and nonoperating items, and that revenue increases were tied in part to an equity interest in a joint venture identified in the packet as Karma.

Comptroller Victoria Rogers reviewed February 2025 budget-to-actual reports and said taxes were running slightly under budget but overall revenues were 1.5% below budget “because of timing issues,” while total expenditures remained materially under budget. Rogers noted fees and service charges were above expectations and that staffing changes in code enforcement had affected fines and fees collections.

Committee members pressed for clarity on pension measures. The city manager reminded the committee that the audit is a snapshot as of April 30, 2024, and therefore does not reflect a second tranche of pension obligation bonds issued later in the summer of 2024: “For audits, it’s always as it was just like your checkbook. You either had it in your account that day or you didn't,” the city manager said.

The committee moved through routine business after the presentations. Members approved the minutes of the Feb. 10, 2025, meeting on a motion by Alderman Marzak, seconded by Alderman Jones; verbal assent was recorded. The committee also received an offer to place the audit summary and full report on a future meeting agenda if members had follow-up questions after reviewing the packet posted on the city website.

The meeting closed with a brief administrative update and a motion to adjourn that carried on a second and verbal “aye.”