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Kankakee City budget committee reviews December finances, auditors miss deadline, pension payments scheduled
Summary
Comptroller Troy Rogers reported revenues at about 62% of year-to-date expectations and flagged timing issues on corporate replacement and cannabis excise taxes. The committee heard that bond proceeds will be split into three pension payments, and auditors missed the year-end deadline, prompting plans for a new RFP.
The Kankakee City Budget Committee reviewed its December financial statements and heard updates on tax receipts, pension payments and the city audit during its January meeting.
Comptroller Troy Rogers told the committee the city’s year-to-date revenues were running “about 62%” of expected levels compared with a target of roughly 67% and said seasonal timing and one outstanding corporate replacement tax entry were behind much of the gap. “We should be at about 67%. We're sitting at about 62%,” Rogers said.
Rogers said he is manually reconciling the corporate replacement tax because access to the state site is restricted and the monthly amounts vary; he described the figure used in the packet as an estimate. He also reported the cannabis excise tax showed only about 8% collected to date and said that figure is an estimate pulled from bank statements rather than the tax portal.
The committee received an update on expenditures: overall spending was described as below budget, with the city at about 56% of budgeted expenditures year to date. Rogers said many departments were keeping salaries under budget and cited timing for some lower-than-expected expenditures, such as police and fire testing costs.
Rogers described recent movement of bond proceeds for pension funding. He said the city split the pension-related proceeds into three payments and made the first payments at the end of December; the next scheduled disbursement is Jan. 22. He said the pension funds have been notified of the amounts and payment dates.
Committee members asked for clarifications on several programs. Rogers described the home-buyer incentive program, saying it is available to city employees and that “for police and fire, it's actually $5,000 for their contracts.” He said the general employee amount and uptake vary and that payments depend on employee requests under the program. On neighborhood stabilization, Rogers explained the program is intended to stabilize occupied or abandoned houses that have not yet gone through tax sale, with the city performing repairs and placing a lien for repayment if the property later sells.
On the city audit, Rogers told the committee the auditors did not meet the expected filing deadline and that the city would consider issuing a request for proposals for future audit services. “They did not meet our expectations,” Rogers said, adding the auditors could still be compliant if they submit within the next few weeks but the city will likely go out to bid for a new auditor.
Votes at a glance: - Motion to approve the December budget committee minutes — moved by Alderman Osinga, seconded by Alderman Lowell Marshall; voice vote, approved. - Motion to adjourn — moved by Alderman Malone Marshall, seconded by Alderman Jones; voice vote, approved.
The committee confirmed a quorum at roll call and did not go into executive session. Several items Rogers flagged for follow-up included reconciling the corporate replacement tax entry, completing ARPA reimbursement entries, and finalizing the remaining pension disbursements.
