Kane County finance director: general fund running below expected expenses but reserves likely to be tapped

Kane County finance staff told the Executive Committee on Nov. 5 that the general fund is running modestly better than plan in the current year, but officials cautioned that vendor invoices and property-tax timing mean reserves will likely be used more than currently recorded.

Kathleen Hopkinson reported the general fund has a budgeted expense of $144,000,000 and that year-to-date expenses are roughly $115,000,000 versus an expected $120,000,000 at this point in the year — about 5% below where staff planned. Revenue overall is slightly ahead of expectations (about 2%); Hopkinson said sales-tax receipts at this time were $21,200,000 versus $19,000,000 last year, while local use-tax revenue declined after a change in state law (from $1,700,000 last year to $750,000 this year).

Hopkinson said the budgeted planned use of reserves for the general fund was $27,000,000 but that the county has used $13,700,000 so far and she presently forecasts reserve use could approach $20,000,000 when year-end invoices are posted. "So we'll probably come close to using about $20,000,000 in reserves," Hopkinson said. She cautioned vendor bills tend to arrive late and the county will not have final numbers until after invoices post to year-end.

Board members asked whether the projected reserve use would exceed budget and what items drive the variance; staff said personnel-service and contractual services are primary contributors to the variance and that property-tax receipts (which come in large June/September lumps) are a key driver of cash-flow timing.

Hopkinson concluded that the county is running slightly better on revenue and expenses than expected but that the picture could change as outstanding invoices are processed; staff will provide final year-end figures after January accounting closes.