TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 2, 2024
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the first quarter of 2024, ended March 31, 2024
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Dear Sir:
Attached is a report on revenues and expenditures for the first quarter of 2024, ended March 31, 2024. This report is prepared on an unaudited budgetary basis of accounting.
The first quarter 2024 Corporate Fund actual net tax revenue of $153.4 million is 46.1 percent of the budgeted tax receivable. The first installment of 2023 property taxes was due on March 1, 2024.
The Corporate Fund actual non-tax revenue of $27.4 million includes user charge income of $14.4 million, rental and easement income of $7.1 million, investment income of $3.0 million, and other miscellaneous revenues. In March 2024, the District contributed $30.0 million in surplus resulting from positive results in 2023, $11.3 million from the 2022 Property Tax Levy Adjustment received under Public Act 102-0519, and $1.5 million from the sale of property approved by the Board in 2023 to the Retirement Fund to maintain the funded ratio as budgeted.
The 2024 first quarter expenditures of $88.2 million are 17.7 percent of $497.3 million of the 2024 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 $7.4 million higher than the same period in 2023 and are mainly attributed to the expiration of Carbon-Free Energy Resource Adjustment (CFRA) credits from ComEd. Healthcare costs are $0.6 million higher than the same period in 2023.
Personal Property Replacement Tax (PPRT) receipts total $19.2 million with $18.1 million allocation to the Retirement Fund and $1.1 million allocation to the Construction Fund, compared to $30.7 million received during the first quarter of 2023. The decline in this economically sensitive revenue was anticipated in the 2024 budget.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through March 2024, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are down 5.4 percent, while the median sales price has increased 8.7 percent compared to the same period in 2023. Home sales continue to decrease due to elevated interest rates.
According to the Bureau of Labor Statistics, the all-items index increased 3.5 percent for the 12 months ending in March. The all-items less food and energy index rose 3.8 percent over the last 12 months. The energy index increased 2.1 percent for the 12 months ending in March and the food index increased 2.2 percent. According to Reuters, U.S. consumer prices increased more than expected in March as Americans continued to pay more for gasoline and rental housing, leading financial markets to anticipate that the Federal Reserve would delay cutting interest rates until September.
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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