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Midyear report: Evanston projects midyear deficit but several revenues running ahead of budget
Summary
Finance staff reported a midyear general fund position showing $66M in revenues, $67.3M in expenses (a $1.4M midpoint deficit) and a combined general fund and parks deficit of about $2.4M; staff noted timing anomalies and flagged potential year‑end favorable scenarios of $5–9M depending on revenues such as sales and transfer taxes.
Finance staff told the committee that at midyear general fund revenues stood at $66,000,000 (roughly 49% of budget) and expenses at $67,300,000 (about 46%), producing a year‑to‑date net deficit of approximately $1.4 million. The presenter said an additional Parks & Recreation deficit of about $1,000,000 yields a combined midpoint shortfall near $2.4 million.
“At the midpoint of the year, the general fund revenues are sitting at 66,000,000, which is 49% of budget. Expenses are at 67,300,000, 46% of budget for a net deficit of 1,400,000 at the midpoint,” staff said, noting that timing differences — delayed pension transfers and a three‑paycheck month in July — make midyear figures look different than true cash performance. Staff listed two large administrative timing items (a $2.5M pension contribution that hit in July and an unbudgeted $1M debt service fund transfer) that affect the midpoint position.
Committee members pressed staff on property tax distributions and Cook County reporting. Staff said a timing and reporting issue left the city short roughly $2.7M in levy receipts from the prior year, and county agency tax reports that differentiate tax years remain unavailable, preventing a full reconciliation.
Staff also presented revenue strengths: sales taxes and real‑estate transfer taxes were ahead of prior years (transfer taxes up 46% through June, with spikes tied to particular property sales), and building‑permit revenue could receive a large one‑time boost from a 605 Davis permit expected in December. Based on current trends, staff estimated a potential $5–$9M favorable result for revenues at year end, leaving reserves $2.2–$8.0M above planned levels in a best‑case scenario.
The committee requested separate display of the Parks & Recreation fund for public reporting and asked staff to reconcile packet numbers with the annual audit’s treatment of transfers; staff said they will reconcile and return with updated figures in September.
