Page 78 - FINAL Combined CB2_Neat

B U S I N E S S D E V E L O P M E N T

While FY 2016 business development sales were not calculated in relation to our targeted $6.0M
in gross fee sales and $4.0M in net fee sales, overall Municipal profit of $242,012 was 43% of our
target of $564,473, significantly under our target.

Municipal Practice Summary
Business Overview
9/30/2017 100% Benchmark at September 30, 2017

Sales/Revenue/Marketing Costs
Summary
Sales (see Sales Report) Annual Target Actual YTD Percent of Target
Gross Fees $6,024,600
Net Fees $4,026,000

Marketing Costs Annual Target Actual YTD Percent of Target
Labor (Hours) 7,132
Labor ($) $270,000 $303,922 113%
Out-of-pocket expense $178,515 $168,954 95%
Total Marketing Cost $448,515 $472,876 105%

Project Performance
Annual Target Actual YTD Percent of Target
Gross Fees (Revenue) $5,014,623
Net Fees (Revenue) $3,763,154 $3,444,338 92%
Profit (Loss) $564,473 $242,012 43%
Percent of Net Revenue 15% 7%

Forecast As at
10/01/2015
Through Sep 30, 2017 $0
Oct 1, 2017 through Sep 30, 2018 $2,442,603
Total Backlog $2,442,603

Municipal market growth was still very strong in police and combined village hall, police and fire
facilities during FY 2017. At last year’s Annual Meeting we discussed a trend during the previous
fiscal year of many of our client’s decisions to delay projects which decreased our projected net
revenue during the fiscal year significantly. While we were optimistic this trend would end quickly
last fiscal year, quite the opposite happened. The delay for many of our clients continued well
past the State of Illinois budget impasse due to potential tax rate freeze legislation. The result of
these political influences affected the progress of the following projects: the remodeling of three
floors of the Cook County Building (delayed), City of St. Charles, IL Police Station (property
acquisition indecision), the Village of Broadview Village Hall and Police station (political
indecision), Village of Mt. Prospect Police Station (funding delay), Roxana Combined Facility
(political indecision), City of Highwood City Hall conversion (cancelled due to politics) and
Arlington Heights Park District Olympic Park Recreation Center (tax rate delay). The combined
reduction to the Municipal projected net revenue for FY 2017 is approximately $447,000.