TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 20, 2025
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the year ended December 31, 2024
Body
Dear Sir:
Attached is a report on revenues and expenditures for the year ended December 31, 2024. This report is prepared on an unaudited budgetary basis of accounting.
The 2024 Corporate Fund actual net tax revenue of $320.4 million ended at 96.3 percent of the budgeted tax receivable, an increase of $19.8 million since the third quarter of 2024.
The Corporate Fund actual non-tax revenue of $109.2 million is 109.4 percent of the budgeted non-tax receivable and includes user charge income of $43.2 million, rental and easement income of $31.0 million, interest income of $15.7 million, TIF distributions of $12.1 million, and other miscellaneous revenues.
The 2024 actual year-end expenditures totaled $455.7 million and are 91.6 percent of the $497.3 million Corporate Fund budget. Two of the primary expenditure drivers, energy and healthcare costs, are monitored closely throughout the year. Energy expenditures (electricity and natural gas) in 2024 are $12.4 million higher than in 2023 and are mainly attributed to Carbon-Free Energy Resource Adjustment (CFRA) rate changes and increased electricity usage, while healthcare expenditures are $1.4 million higher than in 2023 driven by an increase in prescription drug costs. The District’s fourth-quarter financial results ended as projected with a spend-down of fund balance.
Personal Property Replacement Tax (PPRT) receipts for 2024 totaled $70.7 million with $18.1 million first allocated to the Retirement Fund, $25.0 million allocated to the Construction Fund, and $27.6 million allocated to the Corporate Fund. After large receipts in recent years, the District anticipated a decline in this economically sensitive revenue due to planned adjustments by the Illinois Department of Revenue. Compared to the $120.5 million received in 2023, this is a decrease of $49.8 million that was anticipated in the budget.
The two primary economic factors driving District revenues are the real estate market and the Consumer Price Index (CPI). Through December 2024, the Illinois Association of Realtors reports that Chicago Metropolitan Area home sales are up 5.2 percent, while the median sales price has increased 7.9 percent compared to the same period in 2023.
According to the Bureau of Labor Statistics, the consumer price all items index rose 2.9 percent for the 12 months ending December 2024. The all items less food and energy index rose 3.2 percent over the last 12 months. The energy index decreased 0.5 percent for the 12 months ending December 2024 and the food index increased 2.5 percent over the last year.
The Federal Reserve has projected fewer interest rate cuts in 2025 than previously estimated on the back of stickier inflation. The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2025.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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