CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the 2018 2nd Quarter Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
The Financial Advisory Board (FAB) reviewed this report at their July 30, 2018 meeting
BACKGROUND:
Attached is the 2018 2nd Quarter Financial Report. The information contained within will be presented by staff during the August 21 City Council meeting; providing Council an opportunity for discussion related to the information contained in the reports.
Below are highlights from the second quarter, more detailed information can be found in the attached documents.
DISCUSSION:
Overall Highlights
State Actions
In early June, the State of Illinois passed its Fiscal Year 2019 budget. Included in the budget were two provisions, effective July 1, that directly impact the City's budget.
* Administrative Fee on Home Rule Sales Tax (HRST) - For the 2018 state budget fiscal year, the state implemented a 2% administrative fee on HRST collections. This reduced the City's collection by around $180,000 annually. In 2019, the state reduced this fee to 1.5% of collections. Due to this action, the City projects to see $30,000 of incremental revenues in 2018 and an estimated $70,000 of incremental revenues in 2019.
* Income Tax - The State distributes income taxes through the Local Government Distributive Fund (LGDF) on a per capita basis. For the 2018 state budget year, which ran through June 30 of this year, the state reduced disbursements by 10%. For the 2019 budget year, the state decided to once again reduce disbursements, this time by 5%. This unanticipated decrease for the second half of 2018 will reduce the City's projected revenues by $312,000. It will also reduce the City's budgeted revenues in 2019 by $732,000.
United States Supreme Court Decision
On June 21, the United States Supreme Court issued an opinion in the South Dakota v. Wayfair case. This decisions stat...
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