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Riverwoods reports $773,000 third-quarter surplus; TIF 2 hit by FedLife demolition costs
Summary
Finance Director Eloisa Velasquez told trustees the village’s unaudited third-quarter results show a $773,000 surplus and stronger-than-expected revenue performance, while TIF Number 2 has been reduced by Federal Life demolition costs pending reimbursements.
Finance Director Velasquez presented the village’s third-quarter unaudited financial statements and told the board the general fund is ‘‘now showing a $773,000 surplus at the end of the third quarter,’’ ahead of the $517,000 surplus at the same point last year. She said revenues are ‘‘overall trending ahead of our budgeted target for the year with over 88% of budgeted revenue received at this point,’’ noting property taxes, home-rule taxes and municipal sales taxes exceed projections.
Velasquez said a matured certificate of deposit brought $250,000 in one-time revenue that will be reinvested after consultation with the treasurer, and that without that CD the general fund would still be at about 83% of projected revenues. She told trustees that expenses are ‘‘overall near 75% for the year’’ at the third-quarter mark and described the budget posture as conservative.
On other funds, Velasquez reported municipal fuel taxes are at 68% of budget and hotel taxes at 82%. The motor-fuel-tax (MFT) fund is ‘‘right on target’’ with revenue at 77% and expenditures at 0% because anticipated Saunders Road work has not started. The water fund is at roughly 75% of expected revenue for the year and the sewer fund is at 103% of budgeted revenue; the capital fund’s expenditures are low at about 6% of the annual budget.
Velasquez said the capital fund budget is large partly because of Saunders Road and related 2025 capital plans; she reiterated staff’s recommendation to review capital-project timing at the upcoming finance workshop. She also confirmed a $2 million transfer to the capital fund was included in the 2025 budget and that the village again budgeted a $2 million transfer for 2026 planning purposes.
Regarding TIF Number 2, Velasquez said the fund ‘‘continues to post decreases in its overall standing due to the expenses related to the demolition of the Federal Life Building located in TIF Number 2.’’ She said staff recently met with the fire district to reconcile invoices for the demolition and that the district’s expected reimbursement will improve the TIF 2 cash balance as year end approaches.
Trustees asked several clarifying questions about recognition of retroactive pay for represented police employees and the composition of transfers shown in the operating results. Velasquez said retroactive increases were reflected in payroll beginning in the first pay period of October and that some transfers shown under operating activity include sewer-forgiveness support and a transfer to TIF 2.
Why it matters: the village’s reported surplus and stronger-than-expected revenue positions give the board leeway on capital planning, but several major capital projects remain delayed or contingent on external approvals. The FedLife demolition has placed pressure on TIF 2 cash balances pending reimbursements; staff said those reimbursements will be reflected as they are received.
Provenance: Director Vasquez’s report beginning at 00:08:19 through 00:18:58 in the transcript supports the revenue, surplus, CD, fund-by-fund percentages, and TIF 2 statements (topicintro), and the exchanges on retroactive pay and transfers at 00:18:58 (topicfinish).
