Vernon Hills posts $12.8 million net position increase in FY25; auditors issue clean opinion

Vernon Hills — The village’s finance director told trustees on Oct. 21 that government-wide net position grew by $12.8 million during the fiscal year that ended April 30, 2025, and that revenues outperformed budget while expenditures remained below budget.

Finance director Tom Lyons told the board that net position finished the year at about $110.1 million and that capital assets accounted for roughly $75 million of that total. “Net position does not equal cash,” Lyons cautioned in his presentation.

Why it matters: The village’s fiscal health affects bond ratings, capital projects and service levels. Village staff said the stronger results supported transfers to capital and vehicle-replacement funds and maintained robust coverage in the general fund.

Lyons said government-wide revenues grew about $3 million (6 percent) to $53 million, driven in part by a $1.7 million increase in the one-percent municipal sales tax and higher investment income. Expenses grew about $3.8 million (10.4 percent) to $40.2 million, and the general fund ended the year with cash and investments that gave a coverage ratio of roughly 133 percent of expenditures after transfers.

The village also transferred $11.3 million from the general fund to capital and vehicle replacement funds during the year; Lyons said that money remains in the village’s fund structure but now sits in targeted funds for future projects.

Independent auditor Ed Tracy of Southern Fox presented the fiscal 2025 audit and said the audit resulted in an unmodified (clean) opinion. “The purpose of the audit is to provide reasonable but not absolute assurance that the financial statements are fairly presented,” Tracy said. He told the board auditors identified no adjustments that rose to materiality and that they found no reportable deficiencies in internal control that required a management letter.

Tracy also noted two accounting-standard changes the village adopted this year: GASB Statement 101 on compensated absences, which required a restatement reducing beginning net position by more than $1 million to recognize additional sick-pay liabilities, and early adoption of GASB Statement 103 related to financial-reporting model improvements tied to the village’s fund-structure changes.

Board reaction and next steps: Trustees asked for clarifications about quarter-four figures and a breakdown of sales tax and incentives. Lyons and the auditor said the annual comprehensive financial report (ACFR) and management discussion and analysis section are available in the meeting packet for more detail. The village anticipates continuing the financial practices reflected in the audit and will present further budget and rate information as needed.

Sources: Presentation by Finance Director Tom Lyons and audit presentation by Ed Tracy, Southern Fox, Oct. 21, 2025.