Lincoln City Council gets financial figures         

Treasurer's report assesses fiscal year in comparative and forecasts

[OCT. 19, 2006]  City of Lincoln Treasurer Les Plotner delivered his annual report to the city council this week. In it he provides a comparative of revenues and expenditures of various accounts and the remaining fund balances of the past four fiscal years. He closes with a summary of recent economic decisions, advising caution in keeping that growth trend.

Plotner provided the customary three sets of figures, but he also provides additional figures and explanations following the figures. For the summary statement of conditions and expenditures he provided a four-year comparison and identification of contents in the accounts. For the review of revenue he has provided a six-year comparison. These figures are followed by interpretation of those accounts that showed a significant change either up or down.

Treasurer's report

[Text below is from scan of paper copy of report.]

ANNUAL TREASURER'S REPORT FOR FISCAL YEAR ENDING APRIL 30, 2006

Perhaps the best way to analyze the report is to compare this year's Statement of Condition with the past few years. This will give City Council Members a comparative look as to revenues received, expenditures in various accounts, and the remaining FUND BALANCES not only for the past Fiscal Year, but, at the close of the two previous Fiscal Years as well. Hopefully, this type of analysis of the Annual Treasurer's Report will be most useful to Council Members at this time.

See two tables below:

• Comparative summary on statement of conditions

• Comparative expenditures over past 4 years

For those who read and try to interpret or analyze this report, we have provided some information below concerning the contents of the various accounts which are included in the FUND BALANCES mentioned on the previous page [first chart]:

General Fund: Includes General Fund, Special Fire Dept., Drug Forfeiture, Police Task Force, E.R.T. Team, DUI Fund, D.A.R.E., E911, Fire Protection, Police Protection and Streets and Alleys.

Special Rev.: Includes Audit, ESDA, Fire Protection, Forestry, Liability Insurance, Motor Fuel Tax, IMRF, Police Protection, Public Benefits, Streets & Alleys, and Crossing Guards.

Debt Service: Includes funds left over from payment of debt service fees.

Cap. Projects: Funds left over for capital improvement projects to be expended on future Projects.

Enterprise: Includes Sewer Operations & Administration, Illinois EPA Loan Fund, and Contingency and Depreciation.

Intern. Ser.: Includes only the Rental Equipment Fund.

Trust Fund: Includes Police Pension Fund, Firemen's Pension Fund, and the Revolving Fund.

The chart on the following page [see below] compares Revenues over the past six years. A written summary outlining some changes in Revenues as compared to last Fiscal Year is also included to assist Council Members. This summary may or may not be helpful in future Budget planning or in understanding the changes in revenues cited in the chart. If it raises questions, then, Council Members should follow up on those inquiries in the City Clerk's Office.

BUILDING PERMITS

The City had a 17.8% decrease in building permit revenues compared to last year.

DONATIONS

We recorded a 234% increase compared to last year in this revenue source.

CIRCUIT CLERK

Circuit Clerk collections for the city continued to decrease compared to the previous year. Over the past 4 years the collections have decreased from $171,346 in 2002-2003 to $107,346 in 2005-2006 ... 37.2% decrease.

DRUG FORFEITURE FUND

This source of revenue did not produce funds this Fiscal Year.

FRANCHISE FEES

Franchise fees increased 4.3% as compared with last year.

GRANTS

$40,627 received last year; however, $493,421 was received in 2005-2006.

INTEREST

The interest received totaled $1,336,332 compared to $589,548 last year. A breakdown of interest will be presented October 16.

LICENSES

License fees decreased almost 10.0% in 2005-2006 compared to last Fiscal Year.

MOTOR FUEL TAX

This steady increasing source of revenue returned to normalcy this year

PARKING METER COLLECTION

Parking meter collections decreased 10.4% compared to last year.

PROPERTY TAX

The City experienced a decrease of 2.7% in property tax revenues compared to last fiscal year.

REPLACEMENT TAX

This tax source showed a 29.4% increase over the previous year.

SALES TAX

Sales tax receipts increased $ 69,329 last year and $59,451 this fiscal year which represents a 2.74% increase. Non-Home Rule sales tax increased 4.0% as compared to last year. This combined total gives the City a 3.0% increase in sales tax overall.

SEWERAGE RECEIPTS

Sewerage receipts were up 3.0% in 2005-2006 due to the increased sewer rates put in place to upgrade the disposal plant as required by the IEPA and the resulting payback loan.

STATE INCOME TAX

The State Income tax distribution for Lincoln was $152,906 higher this past fiscal year than in fiscal 2004-2005. This represents a 15.0% increase in receipts.

TELECOMMUNICATIONS INFRASTRUCTURE FEES

This source of revenue increased $102,692 in 2005-2006 compared to last fiscal year. That's an increase of almost 60%.

If Council Members have questions about the data presented in this report it is recommended that you seek some answers from the City Clerk's Office. When unusual differences occur in REVENUES/EXPENDITURES there is normally a simple explanation for those differences. If you need to know more about City finance it is suggested that you spend a few minutes of spare time with the City Clerk to obtain some information and valuable assistance.

Hopefully, this report will help provide some input and some understanding about FISCAL YEAR 2005-2006 finances and that it will assist Council Members as they work on Committee Assignments and in structuring Budgets in the future. Since a Budget is basically a working plan of estimated revenues and expenditures based upon past experiences and present needs, Council Members should look to past fiscal patterns to make decisions about spending and suggested improvements.

The City Council took a big step forward with its involvement, spending and future commitments to the SYSCO project during Fiscal Year 2004-2005. Hopefully, it's a beginning of an improved economy, growth of new business, and much needed new jobs for people in our community. Now we have a Super Walmart in the completion stage; several gas stations apparently headed our way; a well known fast food restaurant in the planning stages; and an automobile dealer desiring relocation of their business to new quarters on Route 10 west.

Looking ahead to the last three fourths of the 2006-2007 Fiscal Year the City Council needs to closely monitor the budget and expenditures not planned for the year unless they are emergency expenditures. They need to also monitor spending in the General Fund and keep aware of the cash balance in the fund when considering decisions which might place undue pressures on the fund.

In this Age of "economic incentives" desired to promote economic growth, new and expanded business opportunities, and additional jobs for citizens in our community, the Council must carefully evaluate the true additional revenue growth for the City when granting those incentives.

Remember, "THE ACID TEST OF A DECISION IS WHETHER YOU CAN LIVE WITH IT IN THE LONG RUN"- (Fred Smith)

Lester D. Plotner, City Treasurer
October 16, 2006

Additional notes summarized from the treasurer

This report is on a cash basis for the fiscal year 2005-2006, which ended on April 30.

Several funding accounts are not at the discretion of the city council, mayor or the city treasurer. These funds are managed by other parties or individuals within the framework of the city government. Distributions from these funds are at the sole discretion of those individuals and departments. Such funds include these: Special Fire Department; DUI Fund; Drug Forfeiture Fund; Police Task Force Fund; E911 Fund; E.R.T. Team; and the D.A.R.E. Fund. These fund totals are reflected in the treasurer's report and also the audit totals for the city

When the official audit report is completed, a copy will be placed on file with the Logan County treasurer.

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COMPARATIVE SUMMARY ON STATEMENT OF CONDITIONS

FUND BALANCES	2003	2004	2005	2006
General Fund	$ 899,827	$ 898,358	$1,314,915	$ 665,822
Special Revenue	$ 961,009	$ 1,029,772	$1,272,292	$1,046,728
Debt Service	$ 7,069	$ 17,575	$ 42,216	$ 39,908
Cap. Projects	$ 624,084	$ 630,274	$ 641,387	$ -0-
Enterprise	$ 1,496,587	$ 2,127,400	($7,458,038)	($6,744,284)
Internal Service	$ 103,515	$ 143,337	$ 148,671	$ 93,944
Trust	$16,232,405	$16,368,711	$16,414,500	$17,207,937

NOTE: explanation of funds mentioned above follows expenditures.

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COMPARATIVE EXPENDITURES OVER PAST 4 YEARS

	2003	2004	2005	2006
Salaries	$ 3,110,429	$ 2,770,631	$ 2,724,642	$ 2,760,638
Fire Pensions	$ 611,536	$ 662,175	$ 650,458	$ 678,000
Police Pensions	$ 497,327	$ 509,412	$ 581,945	$ 645,956
Vendors	$ 4,688,576	$12,152,218	$ 5,693,192	$ 7,449.394
TOTAL	$ 8,907,868	$16,054,436	$ 9,650,237	$11,533,988

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REVENUES OVER THE PAST SIX YEARS   2001-2006

Source	2000-2001	2001-2002	2002-2003	2003-2004	2004-2005	2005-2006
2% Foreign Fire Insurance	$7,494	$8,080	$9,508	$10,859	$8,780	$12,456
Building Permits	$22,503	$20,427	$38,081	$16,750	$26,618	$21,858
Circuit Clerk	$184,718	$156,610	$171,346	$138,181	$124,825	$107,595
Donations	$6,661	$7,937	$30,359	$21,661	$15,401	$51,447
Drug Forfeiture Funds	$43,638	-0-	-0-	-0-	-0-	-0-
Equipment Rental	$143,171	$169,782	$150,304	$121,567	$103,211	$98,736
Franchise Fees (Cable)	$122,671	$117,267	$150,086	$121,452	$108,893	$113,651
Grants	$657,570	$31,257	$30,485	$34,562	$40,627	$493,521
Insurance Reimbursement	-0-	$27,173	-0-	-0-	-0-	-0-
Interest	$1,262,206	$806,347	$402,467	$604,774	$589,548	$1,336,332
Licenses	$48,178	$49,532	$55,158	$70,328	$60,401	$69,220
Miscellaneous	$45,991	$45,599	$41,441	$47,283	$61,933	$55,798
Motor Fuel Tax	$447,187	$429,134	$437,905	$439,731	$634,716	$444,378
Parking Meter Collection	$12,251	$11,317	$7,016	$10,755	$11,111	$9,949
Property Taxes	$1,410,178	$1,436,494	$1,455,916	$1,437,689	$1,482,358	$1,441,694
Payroll Deductions/Contributions	$177,145	$218,738	$217,251	$192,307	$199,651	$201,607
Replacement Tax	$206,069	$193,690	$157,301	$174,627	$199,672	$258,492
Sales Tax	$2,223,348	$2,067,865	$2,071,016	$2,055,500	$2,124,829	$2,184,280
Sewerage Receipts	$1,306,726	$1,608,189	$2,182,397	$2,285,634	$2,410,600	$2,482,911
State lncome Tax	$1,183,425	$1,009,896	$1,009,947	$930,126	$1,014,219	$1,167,125
Violations	$360	$490	$140	$110	$400	$1,715
Bond Proceeds	-0-	-0-	$620,000	$510,000	$1,755	T.F.      -0-
Telecommunication Fees	$87,965	$62,432	$53,255	$72,761	$171,453	$274,145
Loan Proceeds			$1,604,651	$7,590,947	-0-	-0-
TOTAL	$9,599,455	$8,478,256	$10,896,030	$16,939.816	$10,007,501	$11,468,100
REVENUES OVER THE PAST SIX YEARS   2001-2006
Non Home Rule Tax				$47,212	$616,500	$641,190