Fiscal Year 2012 Budget 172
Budget Process and Documents
The Trust Indenture requires a tentative budget of the operating expenses for the ensuing fiscal year
on or before October 31st of each fiscal year. The tentative budget must also be submitted to the
Trustee and the Consulting Engineer. The tentative budget must include the recommendations of the
Consulting Engineers as to the Renewal and Replacement Deposit (for preservation of the Tollway
System). The Tollway must provide accompanying estimates of the amount which will be available
for credit to the Improvement Account (for improvements to the Tollway System). The Tollway must
also provide a statement of the actual revenues for the first eight months of the current fiscal year and
estimated revenues for the next four months of the current fiscal year and for the ensuing fiscal year.
The budget must be divided into reasonable classifications and divisions. The tentative budget shall
include the amounts budgeted for operating expenses and amounts required to be deposited into the
Renewal and Replacement Account.
The Trust Indenture and budgetary calendar govern the budget process. The Tollway budget is
required to generate revenues sufficient to pay for operating costs, debt service and a required deposit
for the maintenance and repair of the toll roads as certified by an independent engineer.
Budget Review Process and Implementation
The Tollway’s budget process begins in early July of each year. The budget office prepares and
distributes a preliminary budget for each department at department and cost center levels based on
actual and projected expenditures. Departments are asked to submit planning requirements, new
initiatives, programs, headcount changes or other assumptions to be incorporated into both their
upcoming maintenance and operations budget as well as their capital budget. Once the departmental
budget requests are returned to the budget office, the initial preliminary budget is compared to the
departmental budget request indicating dollar and percent changes along with proper justification.
The preliminary/departmental comparison budget is then presented to the chief of finance by the
budget office. Financial impacts are discussed and the chief of finance reviews and questions certain
requests based on the justification provided. The budget office will then meet with the department
chiefs to obtain further justification on items denied by the chief of finance.
Revised budget requests are returned to the budget office and chief of finance for review. Meetings
are held with budget staff, department chiefs and the chief of finance to discuss and finalize the budget
requests. Final review and sign-off is completed by the chief of finance and the Executive Director.
This process results in the tentative budget.
The tentative budget is presented to the Board of Directors in October. Requested changes by the
Board of Directors and executive management will be incorporated into the Tentative Budget and
public hearings will be held at this time. The budget office will review and incorporate changes
from the Board of Directors, executive management, and public comments. The final budget is then
presented to the Board of Directors in December.
The budget is monitored throughout the fiscal year. Quarterly budget reports are provided to the
Board of Directors and posted on the Illinois Tollway’s Web site.
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