CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the June 2021 Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The monthly financial report, developed in response to the COVID-19 pandemic, provides timely information and data related to the City's financial position and the local economy. As the state moves closer to Phase 5 of the Restore Illinois Plan, monthly reporting will become less focused on the month-to-month performance of revenue indicators and more focused on broader financial discussions around the short- and long-term health of the City's financial position.
DISCUSSION:
Economic Indicators
As public health metrics continue to improve, short-term events are having less impact on the local economy and City finances than they did in 2020. The move to the Bridge Phase on June 1, and the possible move to Phase 5 as early as June 11, are widely seen as the next step to economic stabilization.
City staff continues to monitor various revenue streams, particularly those that are more economically sensitive; however, as the economy stabilizes, reporting will focus more on long-term trends than month-to-month variations in revenue streams.
State Collected Revenues: Revenues collected by the state continue to exceed expectations, with the five revenues below exceeding budget projections by 9.2% in May. State sales tax, with the addition of online sales tax revenue, and state income tax continue to be strong. Sales tax outperformed projections by 10.4%, and that does not include revenue from one of the largest e-commerce retailers which was held for review with the Illinois Department of Revenue (IDOR). Once validated, that revenue could add nearly 2% to the monthly sales tax total. That hold also impacts May HRST, which outperformed budget projections for the first time since the beginning of 2021.
May State Collected Revenues
Revenue
Projection ($)
Act...
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