TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 2, 2026
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. John P. Murray, Executive Director
Title
Report on Budgetary Revenues and Expenditures for the year ended December 31, 2025
Body
Dear Sir:
Attached is a report on revenues and expenditures for the year ended December 31, 2025. This report is prepared on an unaudited budgetary basis of accounting.
The 2025 Corporate Fund actual net tax revenue of $233.1 million ended at 72.1 percent of the budgeted tax receivable, an increase of $73.3 million since the third quarter of 2025. The first installment of current year property taxes was due on March 4th, but billing on the second installment was delayed by over four months to a due date of December 15th, resulting in collections falling short of the full 2025 budgeted levy amount.
The 2025 Corporate Fund actual non-tax revenue of $137.1 million is 119.9 percent of the budgeted non-tax receivable and includes user charge income of $48.3 million, Tax Increment Financing distributions of $35.8 million, rental and easement income of $35.8 million, interest income of $11.6 million, and other miscellaneous revenues totaling $5.6 million. The positive variance is primarily driven by the Tax Increment Financing distributions and user charge income exceeding budgeted amounts by $13.8 million and $11.3 million, respectively.
The 2025 actual year-end expenditures totaled $478.7 million and are 91.4 percent of the $523.7 million Corporate Fund budget. Two of the primary expenditure drivers, energy and healthcare costs, are monitored closely throughout the year. Energy costs are $12.7 million lower than the same period in 2024. The current variance in energy expenditures (electricity and gas) is primarily due to a lower electricity rate, which declined from $0.05422/KWH in 2024 to $0.04433/KWH in 2025. In addition, there was a Carbon-Free Resource Adjustment (CFRA) credit recorded in the fourth quarter of 2025, whereas the same period in 2024 included a CFRA charge, further contributing to the decrease in energy expenses. Healthcare costs are $12.3 million higher than the same period in 2024 primarily due to a substantial increase in prescription drug costs and a significant increase in high-cost claimants on both the PPO and HMO plans. As projected in the 2025 budget, the year-end financial results utilized the fund balance.
Personal Property Replacement Tax (PPRT) receipts for 2025 totaled $56.9 million with $21.7 million allocated to the Corporate Fund, $18.6 million allocated to the Retirement Fund, and $16.6 million allocated to the Construction Fund. Compared to PPRT receipts of $70.7 million received in 2024, this is a decrease of $13.8 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 2025, the Illinois Association of Realtors reports that Chicago metropolitan area home sales are up 0.6 percent, while the median sales price has increased 4.6 percent compared to the same period in 2024.
According to the Bureau of Labor Statistics, the all-items index increased 2.7 percent for the 12 months ending in December. The all-items less food and energy index rose 2.6 percent over the last 12 months. The energy index increased 2.3 percent for the 12 months ending in December, while the food index increased 3.1 percent over the last year.
According to Bloomberg, one of the key drivers of inflation in recent years has been housing costs, the largest category within services, though those pressures largely waned throughout 2025. Shelter prices advanced 0.4% in December, the most since August. Looking forward, economists expect inflation to ease gradually over the course of 2026.
The Budget Office will continue to closely monitor economic conditions, revenues, and expenditures throughout 2026.
Respectfully Submitted, Shellie A. Riedle, Administrative Services Officer
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