CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Receive the August 2022 Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Throughout the COVID-19 pandemic, City staff has provided timely financial information to the City Council through regular reports focused on Naperville's financial position and the local economy. Over time, these reports have evolved to focus on broader discussions around long-term trends that may impact the City's financial position moving forward.
This month's report reviews the overall performance of the City's budget through the first six months of 2022 and introduces trends that will impact 2023 budget development.
DISCUSSION:
Overall Financial Performance
Despite concerns over inflation, the City's overall budget remains in line with expectations through the first six months of 2022 and continues to show positive trends in revenues and expenses.
Revenues
Across all funds, revenues through the first six months total $239.46 million, which is just below staff's projection of $246.32 million. However, this exceeds 2021 revenue by 7.6%.
Revenues
2022
Budget
2022 YTD
Projection
2022 YTD
Actual
Variance
Maint. & Operating Funds
416.22
191.23
199.32
4.2%
Capital & Debt Service Funds
100.19
33.77
22.18
-34.3%
Special Funds
41.47
21.32
17.96
-15.8%
Total
557.88
246.32
239.46
-2.8%
*$ in millions
Revenues in the Maintenance & Operating Funds continue to be strong, exceeding projections by 4.2%. General Fund revenues drive the outperformance across these funds. Sources of strength continue to be sales tax, state income tax, real estate transfer tax, and utility taxes. Revenue in both the Electric and Water utility funds is lower than expected through the first six months. The decline in Electric revenue is largely driven by the purchased power adjustment (PPA), which was budgeted as a positive revenue but has been a credit for most of the year...
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