TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 4, 2024
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the year ended December 31, 2023
Body
Dear Sir:
Attached is a report on revenues and expenditures for the year ended December 31, 2023. This report is prepared on an unaudited budgetary basis of accounting.
The 2023 Corporate Fund actual net tax revenues ended at $426.2 million and consisted of $362.6 million in current year tax receipts and $63.6 million in prior year tax receipts. The delayed property tax billings in 2022 resulted in a portion of 2021 taxes due in 2022 being received in 2023. The 2023 Corporate Fund actual non-tax revenue of $99.7 million includes user charge income of $38.5 million, rental and easement income of $31.0 million, investment income of $12.6 million, TIF distributions of $12.3 million, and other miscellaneous revenues.
The 2023 actual year-end expenditures of $410.5 million are 86.4 percent of the Corporate Fund budget. Two of the primary expenditure drivers, energy and healthcare costs, are monitored closely throughout the year. Energy expenditures (electricity and gas) are $10.5 million more than through the same period in 2022. The increase is mainly contributed to the expiration of Carbon-Free Energy Resource Adjustment (CFRA) credits from ComEd. Healthcare costs are $1.2 million lower than the same period in 2022. The decrease is primarily due to lower claims costs for the retiree population during this period.
Personal Property Replacement Tax (PPRT) totaled $120.5 million with $18.4 million first allocated to the Retirement Fund, $25.0 million allocated to the Construction Fund, and $77.1 million allocated to the Corporate Fund. Treasury and the Budget Office continue to monitor the economically sensitive PPRT, but it is projected to slowly decline year-over-year for the next five years and remain steady near $75.0 million annually.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through December 2023, the Illinois Association of Realtors reported that Chicago metropolitan area home sales are down 6.8 percent, while the median sales price increased 7.0 percent compared to the same period in 2022.
According to the Bureau of Labor Statistics, the all-items index increased 3.4 percent for the 12 months ending in December 2023. The all-items less food and energy index rose 3.9 percent over the last 12 months. The energy index decreased 2.0 percent for the 12 months ending in December 2023 and the food index increased 2.7 percent over the last year.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2024.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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