The document summarizes the city's financial performance for fiscal year 2011. It reports that while general fund revenues were slightly below budget, expenditures were below budget, resulting in a $1.8 million surplus. Several other funds also saw favorable variances. However, lower than expected grants negatively impacted some funds like capital improvement. Enterprise funds like parking, water and sewer saw surpluses, while solid waste had a deficit. Pension funding remains a concern going forward.

1. Fiscal Year 2011
Year-End Financial Review
February 28, 2012

2. Executive Summary
• All figures in this report have been updated, but are unaudited. Annual
audited report distribution date is anticipated in June.
• General Fund revenues finished below budget (unfavorable variance)
by approximately $698K or 0.9%.
• General Fund expenditures finished below budget (favorable variance)
by approximately $2.5M or 3.3%.
• The result is a General Fund net surplus of approximately $1.8M.
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3. General Fund Revenues
• Property Taxes came in at approximately $16M compared to $16.5M
budgeted, or about $500K under budget.
• Approximately $750K of the $1.8M General Fund surplus was due to
revenue from the sale of land on Chicago Avenue, which is considered
one-time revenue.
• Real Estate Transfer Taxes came in at approximately $2M or about
$500K above budget.
• Income Taxes came in at approximately $4.9M or about $200K above
budget.
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4. General Fund Revenues
• Building Permits came in at approximately $1.8M or about $700K
below budget.
• Utility Taxes (electric, natural gas, telecommunications) came in at
approximately $6.3M or $600K under budget. This was primarily due
to the Natural Gas Distribution Tax.
• Sales Tax came in at $12.2M or about $300K above budget.
• Total revenue came in at approximately $73.2M or about $700K below
budget.
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5. General Fund Expenditures
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• Total expenditures
came in at
approximately $71.4M
or 3.3% below budget.
• Police expenditures
exceeded budget by
0.7% primarily due to
higher than anticipated
payouts and overtime.
• The $1.8M General
Fund surplus for FY
2011 increased fund
balance from $14.6M to
$16.4M.
Expenditures Budget Actual
% of
Budget
Legislative 523,131$ 514,586$ 98.4%
City Administration 1,675,952 1,329,524 79.3%
Law Department 828,120 816,863 98.6%
Administrative Services 8,206,488 7,030,956 85.7%
Community and Economic Dev. 2,824,205 2,677,868 94.8%
Police Department 20,263,642 20,400,229 100.7%
Fire & Life Safety Services 11,192,783 11,005,350 98.3%
Health Department 2,135,313 1,989,997 93.2%
Public Works 6,862,268 6,576,242 95.8%
Public Library 3,708,359 3,650,508 98.4%
Parks, Rec. & Comm. Serv. 15,653,221 15,407,209 98.4%
Total Expenditures 73,873,482$ 71,399,332$ 96.7%

6. 12/31/11 Fund Balance Estimate
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General
Fund
General
Fund (Revised)
Audited unrestricted, undesignated fund balance @ 2/28/11 $ 14,581,963 $ 14,581,963
Audited unrestricted, designated fund balance @ 2/28/11 $ 5,426,913 $ 5,426,913
Total Unrestricted Fund Balance @ 2/28/11 $ 20,008,876 $ 20,008,876
Unaudited General Fund revenues FY 2011 $ 73,175,352 $ 73,175,352
Change in Property Tax Receivables $ (6,500,000)
Unaudited General Fund expenditures FY 2011 $ 71,399,332 $ 71,399,332
Unaudited net surplus (deficit) FY 2011 $ 1,776,020 $ (4,723,980)
Estimated unrestricted, fund balance @ 12/31/11 $ 21,784,896 $ 15,284,896
Estimated unrestricted, cash balance @ 12/31/11 $ 10,572,661 $ 10,572,661

7. Other Funds
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8. Other Fund Revenue – Major Variances
• The unfavorable variance (actual revenue less than budgeted revenue)
of $3.7M in the Neighborhood Stabilization Fund is primarily due to
lower than anticipated grant proceeds and programmatic revenue.
• The following funds ended FY 2011 with unfavorable revenue
variances due to lower than anticipated intergovernmental program
entitlements:
– CDBG Fund - $646K
– HOME Fund - $489K
• The unfavorable variance of $243K in the Economic Development
Fund is due to lower than anticipated hotel and amusement tax
revenue.
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9. Other Fund Revenues – Major Variances
• The favorable variance of $350K in the Washington National TIF Fund
is primarily due to higher than anticipated property tax increment.
• The unfavorable variance of $4.9M in the Capital Improvement Fund
was due to budgeted grants which were not awarded to the City.
• The unfavorable variance of $1.9M in the Parking Fund was primarily
due to reserve funds for future capital repairs which were not collected.
• The favorable variance of $2.3M in the Water Fund was primarily due
to debt proceeds and other miscellaneous program revenues.
• The favorable variance of $5.1M in the Sewer Fund was primarily due
to higher than anticipated operational revenue.
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10. Other Fund Expenditures
• The following funds ended FY 2011 with favorable expenditure
variances due to lower than anticipated development activity
expenses:
– Neighborhood Stabilization Program 2 Fund - $3.7M
– CDBG Fund - $477K
– Economic Development Fund - $160K
– HOME Fund - $484K
– Affordable Housing Fund - $221K
• The favorable variance of $219K in the Motor Fuel Tax Fund was
primarily due to favorable bid pricing for street resurfacing projects.
• The favorable variance of $5.4M in the Capital Improvement Fund was
primarily due to grant-funded projects which were deferred when the
City was not awarded the anticipated grants.
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11. Other Fund Expenditures
• The following funds ended FY 2011 with favorable variances primarily
due to lower than anticipated capital project expenditures:
– Emergency 911 Fund - $197K
– Washington National TIF Fund - $796K
– West Evanston TIF Fund - $426K
– Special Assessment Fund - $867K
– Fleet Fund - $1.2M
• The favorable variance of $732K in the Insurance Fund was primarily
due to the reduced premium costs for the City.
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12. 12
Other Fund Expenditures
• The following enterprise funds ended FY 2011 with favorable variances
due to lower than anticipated capital and operating expenditures:
– Parking Fund - $5.8M
– Water Fund - $3.6M
– Sewer Fund - $764K
• The unfavorable variance of $245K in the Solid Waste Fund was
primarily due to higher than anticipated expenditures associated with
the City’s refuse, recycling and yard waste program.

13. Fiscal Year 2011 Summary
• General Fund
– FY 2011 revenues were close to budget and expenditures were held below budget
– FY 2011 surplus of approximately $1.8M (without receivable adjustment)
– General Fund Budget savings/one-time Capital expenses discussion in March.
• Capital Improvement Program
– Capital revenues and expenditures for FY 2011 were below budget
– $4M of anticipated project grants were not awarded to City
• Enterprise Funds
– Parking, Water and Sewer Funds ended FY 2011 with surpluses
– Solid Waste Fund ended FY 2011 with a $1.4M deficit.
• Pension funding remains a major financial concern.
• Moody’s and Fitch rating services have affirmed the City’s Aaa and
AAA ratings respectively.
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14. Questions?