TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 6, 2020
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the first quarter of 2020, ended March 31, 2020
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Dear Sir:
Attached is a report of revenues and expenditures for the first quarter of 2020, ended March 31, 2020. This report is prepared on an unaudited budgetary basis of accounting.
The actual 2020 Corporate Fund net tax revenue of $124.2 million is 47.4 percent of the budgeted revenues and is $7.1 million above the collections for the same period in 2019. Actual Corporate Fund non-tax revenue for 2020 includes the following: user charge income of $16.0 million, TIF surplus distributions of $15.0 million, and rental and easement income of $4.6 million. During the period, 78.9 percent of the 2020 expected TIF surplus distribution was received.
The 2020 first quarter expenditures of $76.5 million are 19.2 percent of the $398.2 million Corporate Fund budget. Energy and healthcare costs, two of the primary expenditure drivers, are monitored closely throughout the year. Energy expenditures (electricity and gas) in 2020 are 5.7 percent lower than the same period in 2019. Healthcare costs to date are 4.2 percent lower than the same period in 2019.
The two primary economic factors driving the District’s revenues are the Consumer Price Index (CPI) and the real estate market. Over the last 12 months, the index increased 1.5 percent before seasonal adjustment. The CPI for All Urban Consumers (CPI-U) declined 0.4 percent in March on a seasonally adjusted basis, the largest monthly decline since January 2015, as the impact of COVID-19 quarantines quickly impacted the economy. The index for all items less food and energy decreased 0.1 percent in March, its first monthly decline since January 2010. The Illinois Association of Realtors reports that Chicago metropolitan area home sales are up 3.7 percent through March 2020, while the median sales price has increased 7.0 percent in the same period.
Despite a strong first quarter, User Charge, PPRT, and Investment Income are projected to end the year under budget. We will continue to closely monitor economic conditions, revenues, and expenditures to evaluate if expenditure controls will be necessary later in the year. Because of the immediate economic uncertainty, the District will plan a very conservative approach to early 2021 projections.
Respectfully Submitted, Eileen M. McElligott, Administrative Services Officer, SAR
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