CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Receive the March 2022 Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Regular monitoring and reporting served the City well over the past two years of economic uncertainty driven by the pandemic. Monthly financial reports to City Council help inform the public on important issues related to City finances, including discussions around short- and long-term financial strategies.
This month's report focuses on local, state, and national trends observed in the first two months of the year, including ongoing global supply chain, inflationary, and financial market issues. In addition, staff has begun initial analysis of how the State of Illinois 2023 budget proposal may impact municipalities.
DISCUSSION:
Local Economic Trends
State and Home Rule Sales Taxes
Revenues generated by sales and use taxes continue to be one of the best indicators of local economic activity across the many business sectors that collect these taxes. The table below shows sales tax and home rule sales tax (HRST) revenue for the first two months of 2022 (October and November 2021 sales). Revenue continues to be strong in both categories and exceeded budget projections by 8.2% and 10.5% respectively. Expectations for another strong month in March (December sales) are high as the National Retail Federation reported 2021 holiday sales were up 14.1% over 2020.
Sales Tax Receipts through February
Projection
Actual
Diff ($)
Diff (%)
2022 Budget
% of Budget YTD
Sales Tax
6,871,395
7,437,754
566,360
8.2
41,837,584
17.8
HRST
2,771,421
3,061,346
289,925
10.5
16,186,610
18.9
Local Taxes
Monthly sales data submitted with local tax returns also provides valuable information on economic trends. The information is timelier than state data but covers a limited number of business sectors. The table below shows a comparison of fourth quarter (October - Decem...
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