|
 Following the start of the city's fiscal year in May, city of
Lincoln department heads provided annual reports to the mayor and
council. Plotner held off his report, waiting for the annual audit,
which will be back soon.
In the meantime Plotner prepared some revenue and expenditure
figures for the council to consider as they make their continuing
decisions.
His compilations are comparatives involving either all that was
available or the pertinent past years. He also explains the
significance of some figures and makes projections based on history,
known changes and what other authorities, such as the Illinois
Municipal League, are saying. He explains the impact of state of
Illinois mandates and makes sense of tax-capped versus
non-tax-capped funds. And, finally his report recalls the current
development agreements now in effect.
Plotner works closely with the city clerk, Melanie Riggs, in
getting and assessing figures. He makes recommendations on how the
city can meet obligations, when and where they can move forward and
yet stay in the black.
He also works with the mayor and various department heads
throughout the year with an eye on keeping the city functioning,
special project expenses and future planning.
While not conclusive, in some cases the multiyear comparatives
may be providing the council with the possibility of seeing the
results of decisions that they have made in the past with an eye
toward the future, particularly in the city's participation in
attracting new business.
The opening figures table tax revenues, starting with sales taxes
and continuing into income taxes. He explained that increasing
revenue changes seen from year to year may be the influence of a
healthy economy, the addition of businesses and the expansion of
jobs in the city.
A look at some tax receipts over seven years
Sales tax
Sales tax jumped 12.3 percent over last year. This was an
increase enjoyed statewide this year, but the Illinois Municipal
League says not to expect the same jump in this coming year.
SALES TAX COMPARISONS
|
2001-2002 |
$ 1,892,592 |
|
2002-2003 |
$ 1,912,639 |
|
2003-2004 |
$ 1,912,657 |
|
2004-2005 |
$ 1,966,144 |
|
2005-2006 |
$ 2,000,698 |
|
2006-2007 |
$ 2,102,914 |
|
2007-2008 |
$ 2,362,842 |
Use tax
Use tax is up 5 percent.
The Illinois Municipal League expects that this will only be a
1.9 percent increase for next year.
USE TAX COMPARISONS
|
2001-2002 |
$ 156,353 |
|
2002-2003 |
$ 135,548 |
|
2003-2004 |
$ 142,847 |
|
2004-2005 |
$ 158,098 |
|
2005-2006 |
$ 183,567 |
|
2006-2007 |
$ 199,431 |
|
2007-2008 |
$ 209,573 |
Telecommunications tax
Telecommunications is now holding and is expected to remain the
same.
Previous jumps in revenue from this source were related to the
city being able to raise their percentage of this tax from 1
percent, to 3 percent and finally to 6 percent. It is at its limit
now, and the revenue is expected to stay the same in the next year.
TELECOMMUNICATIONS TAX COMPARISONS
|
2003-2004 |
$ 72,755 |
|
2004-2005 |
$ 171,447 |
|
2005-2006 |
$ 274,119 |
|
2006-2007 |
$ 495,590 |
|
2007-2008 |
$ 494,488 |
Non-home rule sales tax
Non-home rule sales tax saw a 9.5 percent gain over last year.
This is the one-half cent sales tax that can be used for
infrastructure. It was approved by citizens a few years ago.
NON-HOME RULE SALES TAX COMPARISONS
|
2003-2004 |
$ 47,211 |
|
2004-2005 |
$ 616,400 |
|
2005-2006 |
$ 641,186 |
|
2006-2007 |
$ 657,214 |
|
2007-2008 |
$ 719,873 |
Income tax
The figures here are not accurately represented due to a payment
from the state that came in on May 1, one day too late to show where
it should have for last fiscal year. This causes last fiscal year to
show an increase of 3.75 percent, but last year is really an 11
percent increase.
INCOME TAX COMPARISONS
|
2001-2002 |
$ 1,009,896 |
|
2002-2003 |
$ 1,009,946 |
|
2003-2004 |
$ 930,122 |
|
2004-2005 |
$ 1,014,214 |
|
2005-2006 |
$ 1,167,120 |
|
2006-2007 |
$ 1,274,712 |
[to top of second column]
 |
Tax revenues
Plotner noted a significant jump between 2006 and 2007 food sales
taxes, which didn't fit with other information. This could be
because Sysco is now included in the food category.
He also noted that Wal-Mart is included in the general
merchandise category. When looking at that, he reminded the council
that it takes four months after a business sends in these taxes to
the state before the state sends the city (or county) their portion.
ILLINOIS DEPARTMENT OF REVENUE
REPORT OF SALES TAX COLLECTIONS FOR LINCOLN, ILLINOIS
(See table below.)
DEBT OBLIGATIONS OF THE CITY OF LINCOLN AS OF MAY 1,
2008
(See table below.)
Expenditures
Plotner reported that in the middle of May the police pension
fund had reached $9,713,583. The firemen's pension fund had
$7,311,644.
The savings of the two funds are invested in different ways and
therefore show gains at different times, Plotner explained. The
firemen's pension has two $1,000,000 annuities that at the end of
their 10-year investments will be worth $2,000,000 each. The
firemen's fund investments are also in CD ladders.
Tax levy for Lincoln from 2004 to 2007
In a review of taxes from 2004 to 2007, Plotner said that it
shows "what I consider a very nominal increase over this period of
years." These figures show a 2 percent to 3 percent increase.
"That's not much of an increase, and some of that is in a non-capped
category," he said.
In the next table you can see that taxes
needed to pay off bonds are not capped.
A few years ago the state increased the amount of benefits that
would be paid to the spouse of a deceased fireman. This also is not
capped. The state allows communities to collect taxes to pay this.
However, if you skip down to the table
below labeled "ALLOCATION OF 2007 TAX LEVY," you will see a
correlated issue that has been a continuing concern to the
treasurer. The state also sets police and firemen's pension funds,
which have been increased significantly, and they are under the tax
cap.
The liability to pay these funds without a tax increase makes
them an unfunded mandate that's putting a burden on the community.
"That's been going on for a while," Plotner said. "It's not bad now,
but down the road that's going to get serious, if they don't find a
way to fund those pension funds."
A look at the last table shows where the city levy goes. "It
shows that 48 percent of that levy now goes to that police and
fireman pension fund."
In summary, Plotner said, "It's just a matter of being able to
operate the entire city, with salary increases and everything with
the tax caps, and allowing you 2 percent to 3 percent increase per
year, (providing) about $30,000 to $40,000 a year."
Concerned for the ongoing impact, he said, "How far does that
go?"
TAX LEVY FOR LINCOLN FROM 2004 TO 2007
(See table below.)
ALLOCATION OF 2007 TAX LEVY
(See table below.)
Looking into the future, Plotner reminded the council of the
incentive agreements made with Sysco and Wal-Mart.
Sysco
Years 1-5: The city retains the first $50,000. Sysco gets any
amounts between $50,000 and $130,000; over that amount the city
would get.
Years 6-20: The first $90,000 the city gets; over that to
$180,000 Sysco retains; and if it were over $180,000, the city would
get it.
Wal-Mart
A sales tax base averaged from years 2002, 2003 and 2004 will be
set. Any amounts over that base for the next 20 years, up to
$585,000, will be paid to Wal-Mart to compensate them for the
infrastructure that they put in.
Council members Verl Prather, Kathy Horn, other aldermen and
Mayor Beth Davis-Kavelman thanked Plotner, saying, "Very good
report."
[By JAN YOUNGQUIST]
Previous
related articles
|
ILLINOIS DEPARTMENT OF REVENUE
REPORT OF SALES TAX COLLECTIONS FOR LINCOLN, ILLINOIS
|
CATEGORY |
Liability
Collected |
05-04/2005
Aug-July |
05-04/2006
Aug-July |
05-04/2007
Aug-July |
|
Gen. Merchandise |
$329,333 |
$326,975 |
$375,470 |
|
Food |
$254,362 |
$282,845 |
$422,057 |
|
Drinking/Eating Places |
$237,856 |
$242,600 |
$244,825 |
|
Apparel |
$27,641 |
$27,203 |
$25,120 |
|
Furniture/H.H./Radio |
$27,290 |
$25,297 |
$27,153 |
|
Lumber/Bldg. Hardware |
$78,358 |
$86,159 |
$87,504 |
|
Automotive/Fill. Stations |
$667,551 |
$651,522 |
$688,480 |
|
Drugs, Misc. Retail |
$185,730 |
$172,365 |
$189,015 |
|
Agriculture /All Others |
$143,807 |
$161,357 |
$146,646 |
|
Manufacturers |
$29,647 |
$27,111 |
$26,967 |
|
NUMBER OF TAXPAYERS |
636 |
631 |
615 |
SYSCO IS INCLUDED IN FOOD
CATEGORY
WAL-MART IS INCLUDED IN GENERAL MERCHANDISE CATEGORY
|
2006-2008 |
$ 1,322.612
$ 1,413,459*** (Last distribution of Income Tax was received
on May 1, 2008 which is the first day of the new Fiscal Year
… the check was in the amount of $ 90,847. It will have to
be included in the income tax receipts for FY 2008-2009. If
received on time, our income tax total for this year would
have been $1,413,459.)
Another income tax distribution was received May 8 in the
amount of $131,125, which is slightly higher than last
year's $129,512. |
DEBT OBLIGATIONS OF THE CITY OF LINCOLN AS OF MAY 1,
2008
|
General Obligation Bonds |
$ 541,637 |
|
Approx. $180,550 per year thru
2010 |
|
|
Capital Projects- Fire Truck,
Squad Cars, Street & Alley Dump Truck |
|
|
Alternate Revenue Bonds |
$ 387,425 |
|
Approx. $65,000 per year thru
2013 |
|
|
(Goody's and Dollar Tree) |
|
|
Debt Certificates |
$ 230,921 |
|
Approx. $33,000 per year thru
2014 |
|
|
(Sysco Land Purchase) |
|
|
Enterprise Funds/Notes Payable |
$ 8,100,216 |
|
Approx. $642,388 per year thru
2024 |
|
|
(Sewer Treatment Plant Required
Update) |
|
|
*Sewer Fees pay for the loan
and operation of plant. |
|
|
West Side Sewer Project |
$302,444 |
|
Approx. $125,800 per year until
total due is paid |
|
|
*Sewer Fees pay for this loan |
|
|
State Fire Loan |
$250,000 |
|
Interest free loan from State
of Illinois … pay $12,500 per year until 2008 |
|
TAX LEVY FOR LINCOLN FROM 2004 TO 2007
|
2004 |
1.9% CPI |
|
$ 1,273,851 |
Capped |
|
| |
|
Bonds |
170,170 |
Not Capped |
|
| |
|
|
$ 1,444,021 |
Total Levy |
|
|
2005 |
3.3% CPI |
|
$ 1,291,351 |
Capped |
|
| |
|
Bonds |
173,485 |
Not Capped |
|
| |
|
F. Spouse |
19,000 |
Not Capped |
|
| |
|
|
$ 1,483,836 |
Total Levy |
+
2.76% |
| |
|
|
|
|
+
$39,815 |
|
2006 |
3.4% CPI |
|
$ 1,335,200 |
Capped |
|
| |
|
Bonds |
176,300 |
Not Capped |
|
| |
|
F. Spouse |
19,800 |
Not Capped |
|
| |
|
|
$ 1,531,300 |
Total Levy |
+
3.19% |
| |
|
|
|
|
+
$47,464 |
|
2007 |
2.37% CPI |
|
$ 1,368,588 |
Capped |
|
| |
|
Bonds |
178,431 |
Not Capped |
|
| |
|
F. Spouse |
20,660 |
Not Capped |
|
| |
|
|
$ 1,567,679 |
Total Levy |
+
2.37% |
| |
|
|
|
|
+
$36,379 |
PTELL … Property Tax
Extension Limited Law (Tax Caps … Use Consumer Price Index)
ALLOCATION OF 2007 TAX LEVY
|
FUND ALLOCATION |
AMOUNT |
%
OF LEVY |
|
General Corporate |
$
24,000 |
1.5 |
|
Streets & Alleys |
100 |
-0- |
|
Police Protection |
59,000 |
4.3 |
|
Fire Protection |
125,000 |
9.1 |
|
Audit |
16,000 |
1.2 |
|
ESDA |
4,000 |
.3 |
|
Forestry |
48,000 |
3.0 |
|
Crossing Guards |
15,000 |
1.0 |
|
Liability Insurance |
200,000 |
13.0 |
|
Social Security |
50,000 |
3.2 |
|
IMRF |
55,488 |
3.5 |
|
Public Benefits |
47,000 |
3.0 |
|
Firemens Pension Fund |
339,000 |
22.0 |
|
Police Pension Fund |
386,000 |
25.0 |
|
Debt Service (2007 G.O. Bonds) |
178,431 |
11.0 |
|
Firemen's Pension-Spouse Benefits |
20,668 |
1.3 |
| |
$1,567,679 |
|
48% of
Levy for Police & Firemen's Pension Fund
13% of Levy for Liability Insurance
12% of Levy for Police and Fire Protection
11% of Levy for Debt Service (G.O. Bonds 2007)
Les Plotner
City Treasurer
May 17, 2008
[Financial text copied from
report from Les Plotner, city treasurer] |
