CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Receive the August 2021 Financial Report
body
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. The August report provides continued insight on emerging revenue trends and examines their impact on preparing the 2022 budget.
DISCUSSION:
Economic Indicators
Since the July report, the increased prevalence of COVID-19 variants has raised new public health concerns. Staff is closely monitoring the potential economic impacts; however, at this time, all business sectors are operating without restrictions.
State Collected Revenues
In total, state collected revenues exceed budget projections by 21.9%, or $9.1 million through July. State income tax continues to be the best performing revenue compared to 2021 projections. The Illinois Municipal League recently issued its second forecast revision, increasing state income tax forecasts by another 8%. Several other trends have also emerged in recent months:
* Sales tax surpassing 2019 amounts by 20% or more for three consecutive months;
* Home rule sales tax (HRST) exceeding 2019 amounts by 17% or more for three consecutive months; and
* Motor fuel tax exceeding budget projections by 15% over the past three months.
YTD State Collected Revenues through July
Revenue
Projection ($)
Actual
($)
Difference ($)
Difference (%)
Sales Tax
18,743,511
21,512,996
2,769,485
14.8%
State Income Tax
8,960,446
12,782,691
3,822,245
42.7%
Home Rule Sales Tax
7,502,485
9,585,841
2,083,355
27.8%
Motor Fuel Tax/TRF
3,153,465
3,198,994
45,529
1.4%
Local Use Tax
3,412,832
3,831,278
418,447
12.3%
Totals
41,772,740
50,911,800
9,139,060
21.9%
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