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City
Treasurer presents annual report
Urges
council to exercise restraint, stick to budget
It's
coming time to do some street repairs
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[October 31, 2008]
Lincoln City Treasurer Lester Plotner has released his annual
report for the past fiscal year, ending April 30, 2008. Plotner said
that he prepares the report with comparative past year figures from
several areas of interest for the council's use in their
decision-making process, "as things come up," during the year.
The report is composed of tables and brief interpretive summaries
that observe the more significant changes. These are followed by
additional comments by the treasurer of when and where to exercise
restraint, his concerns, and when to plan to spend some funds.
|
 There are numerous restrictions, limitations and requirements placed
on local governments that influence finances, such as tax caps and
unfunded mandates.
As with any government and seen in these figures, public service
costs (salaries) account for the greater portion of the budget.
Those costs are influenced by state regulations and the necessity to
provide competitive salaries, benefits, equipment, and training or
educational opportunities.
Last year the city took action to help reduce the cost of
salaries. The city offered an early retirement option that resulted
in a reduction in the number of higher paid employees in the fire
and police departments. This made room for new personnel at lower
salary costs. However, as planned, there were some first-year costs
for training and equipping the new hires.
Of particular interest to both Lincoln and Logan County
governments at this time are the anticipated increases in sales tax
revenues, specifically from Sysco and the Wal-Mart Supercenter. Both
governments took out loans that covered some of the costs of the
infrastructure that brought the businesses here.
The businesses also provided some of the infrastructure costs.
The city has agreements to pay back those costs out of some of the
sales taxes that come back from those businesses.
One of the bigger squeezes that is felt at both the city and
county levels is that the state keeps raising the pension payment
rates. It is another unfunded mandate that increases local
government costs. The governments have no additional resources to
cover the increases, taxes are capped, so it is said to be taking
bigger and bigger bites out of the general budgets.
A report of the police and fire
department pension payments can be seen below this article. The
funds are kept in investments, mostly CDs and mutual funds, which
are safe from the nation's recent financial investment problems.
Plotner said last week that there were some investments affected by
the stock market that now had a little less value on the books than
what was paid in.
The treasurer's report was prepared by the city clerk's office
and City Clerk Melanie Riggs. While the report is based on the past
fiscal year audit, the official audit has not been completed yet. It
was also noted that the report is on a cash basis for the 2007-2008
fiscal year.
___
Annual treasurer's report for fiscal year May 1, 2007, to April
30, 2008
(Indented sections copied from scan of document from Lester D. Plotner,
city treasurer)
Comparative statement of conditions
(See table below.)
Summary of statement of conditions
General Fund: Includes General Fund, Special Fire
Dept., Drug Forfeiture, Police Task Force, E.R.T. Team, DUI Fund,
D.A.R.E., Fire Protection, Police Protection and Streets and Alleys.
* It was noted that the Special Fire Department, DUI Fund, Drug
Forfeiture Fund, Police Task Force Fund, E.R.T. Team and the D.A.R.E.
Fund are managed by people and departments within the framework of
the city government, but are not at the discretion of the city
council, mayor or the city treasurer. Their totals are reflected in
the treasurer's report and in the audit totals for the city.
Special Rev.: Includes Audit, ESDA, Forestry, Liability Insurance,
Motor Fuel Tax, IMRF, Public Benefits, 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.
(See additional information on police and firemen's pension funds
below this article.)
Comparative revenues over the past five
years 2003-2008
(See table below.)
Summary of revenues
BUILDING PERMITS
The City had a 19%
decrease in building permit revenues compared to last year.
* The figures here are based on the fiscal year.
However, as a side note, the calendar year provides a different
perspective. City code enforcement officer Les Last provided a
comparative of last year and this year‘s calendar year-to-date
figures for building permits and fees.
Last year from Jan. 2, 2007, to Oct. 23, 2007, 432 building
permits were issued at a construction value of $11,686,506, with
$17,088 in permit fees collected.
This year from Jan. 2, 2008, to Oct. 23, 2008, 394 building
permits were issued at a construction value of $7,899,450, with
$28,276 in permit fees collected.
When looking at the calendar year, revenues from the building and
codes department are up, Last said.
He also noted that there is a large $7.5 million building project
going on at Lincoln College. They had been in for permits needed
during the foundation portion of the project, but as of last week
had not been in yet for the $6 million building permit portion of
that project.
Last considered that some of the drop recorded in the fiscal year
figures could have been related to big projects that were added to
the enterprise zone, where permit fees are waived.
DONATIONS
We recorded a 21% decrease 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 6 years the
collections have decreased from $171,346 in 2002-2003 to $84,713 in
2007-2008 ... a 51% decrease.
These are fines and fees, from speeding tickets to code
violations, that are collected and sent to the state. The state
takes a cut and sends it back through Circuit Clerk Carla Bender's
office.
"We looked at that a little bit, and there are a number of
different factors that created that decline. One thing that we want
to make clear is that it's certainly not the fault of the circuit
clerk's office that that has declined. We're looking into it a
little further, and later we'll talk about what those things might
have been," Plotner said.
DRUG FORFEITURE FUND
This source of revenue did not produce funds this
Fiscal Year.
FRANCHISE FEES
Franchise fees decreased 13% as compared with last
year.
GRANTS
None received this Fiscal Year.
INTEREST
The interest received totaled $527,674 compared to
$1,351,639 last year. The Police Pension ($219,406); Firemen's
Pension ($115,306); General and Special Funds ($97,229); and
Enterprise Funds ($52,406) are majority of the total interest.
[to top of second column] |
LICENSES
License fees increased 15% in 2007-2008 compared to
last Fiscal Year.
MOTOR FUEL TAX
Decreased 3% from amount received last year.
PARKING METER COLLECTION
Parking meter collections decreased 35% compared to
last year. Evidently not a high priority revenue source.
PROPERTY TAX
The City experienced an increase of 3.3 in property
tax revenues compared to last fiscal year. We had a 7.7% increase in
property taxes last year.
REPLACEMENT TAX
This tax source showed a 14.5% increase over the
previous year.
SALES TAX
Sales tax receipts increased $118,076 last year and
$268,975 this fiscal year which represents an 11.7% increase.
Non-Home Rule sales tax increased 9.5% as compared to last year.
This combined total gives the City an 11.2% increase in sales tax
overall.
SEWERAGE RECEIPTS
Sewerage receipts were down 1.4% in 2007-2008. This
marks the second year in succession that sewer receipts are down.
STATE INCOME TAX
The State Income tax distribution for Lincoln was
$41,897 higher this past fiscal year than in fiscal 2006-2007. This
represents a 3.3% increase in receipts. You will recall there was a
$90,847 income tax payment paid in 2008-2009 rather than in
2007-2008.
TELECOMMUNICATIONS INFRASTRUCTURE FEES
This source of revenue was down slightly (2.2%)
compared to 2006-2007.
Comparative expenditures
over past four years
(See table below.)
In final summary of the annual report
Plotner cautioned council members and department heads: "Looking
ahead to the last seven months of the 2008-2009 fiscal year, you
need to continue to closely monitor the budget and stay close to it,
rather than spend appropriated funds, unless they are emergency
expenditures. You 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."
Fifth Street Road
Plotner addressed the Fifth Street Road project, "which stays on
the minds of a lot of people."
"You're really going to have to have federal and/or state funding
to do that project," he said. "I know that makes a lot of people
unhappy, but that's the truth. It's very doubtful that current local
sources of funding could handle such a project, unless Lincoln
residents approve issuing bonds for it."
When large expenditures need to be made, large sources of
revenues need to be secured to pay the bill, he said. Otherwise, he
added, it would have to come out of the general fund, using sales
tax or possibly some non-home-rule tax.
He believes that voters approved the non-home-rule tax increase
with the understanding that it would raise funds to work on roads
within the city.
The non-home-rule tax currently has collected a bank balance of
$797,000-plus. Another $690,000 is expected to be added to that next
year. He wanted the council to be aware that there would be up to
$1.5 million available next year. He suggested that they plan to put
some street projects in the next budget and recommended public
hearings to see what citizens think needs to be done.
The cost of growth
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
both the immediate and the long-term advantages for the city,
Plotner said.
Both Wal-Mart and Sysco fronted the city for some of the
infrastructure costs when they built in undeveloped areas. Their
development agreements vary, but in each they are paid back out of
sales taxes.
One major concern Plotner has at this time is that the city
really doesn't know how much of this year's sales tax might need to
be paid back to Wal-Mart and Sysco for this year.
The city clerk has sent a letter to the Illinois Department of
Revenue requesting the information.
"Since we do not have the information, as yet, on this matter, it
remains a question as to how such incentives will affect the bottom
line of the general fund at the end of this fiscal year," Plotner
said. "As city treasurer, I have concerns about such. I hope you
share my concerns."
Plotner concluded his annual report with this quote from Fred
Smith: "The acid test of a decision is whether you can live
with it in the long run."
Some current figures
Plotner also updated the council on current financial figures
with his monthly report. He said that at the end of September the
city had $4,522,777 in the bank and $243,652 in investments.
The general fund was showing $830,000. One year ago it was
$478,000. Plotner cautioned that this figure could be "ballooned"
and should not be compared right now, "There could be money in there
that has not been paid back to the contingency fund," he said.
He also noted that currently the general obligation bond fund has
decreased to $243,652 because a check for $202,413 was sent for
payment on the new fire truck that is being built. He added that
there is a $250,000 loan check from the state being held for when
the truck is completed.
[From the report presented by Les
Plotner, city treasurer; with additions by
JAN YOUNGQUIST]
Editor's note: The treasurer presented his reports at the city's
business session last week. However, because there was additional
information that was to be added or clarified at this week's council
meeting, Lincoln Daily News held the report to bring it to you in
full.
Past related articles
 |
Lincoln police and firemen's pension
investment report
(Text below copied from scanned report.)
LINCOLN POLICE AND
FIREMEN'S PENSION INVESTMENTS AS OF OCTOBER 1, 2008. |
|
Police Pension Fund Investments
1. C.D. at Illini Bank for $2,553,000 at a rate of
2.95% yielding $12,380.30 at its maturity on October 25, 2008. The
investment took place August 25, 2008 and the investment period was
two months. We will take sealed bids around October 23.
2. $2,466,841.60 in a money market account at Logan
County Bank. The interest paid on this account in September was at a
rate of 1.84%
3. $629.41 invested in Illinois Funds.
4. For the month of September the Police Pension
Fund had $1,643,621.79 in Mutual Funds at Edward Jones on September
30 and $500,543 in a ladder C.D. investment (approximately $50,000
in 10 different banks). This was a total of $2,144,164.79. The total
value of these two investments was $1,951,927 on September 26, 2008.
Compared to the total funds invested the net worth on September 26
was $192,237 less than the investment total.
5. Police Pension Fund had $1,951,019.28 in Mutual
Funds at Lincoln Financial Securities (PFC Management in Lincoln)
and $504,545 in a ladder C.D. investment. This was a total of
$2,455,564.28. The total value of these two investments on the
client statement on September 30, 2008 was $2,129,680. Compared to
the total funds invested the net worth on September 30 was $325,884
less than the investment total.
Only the Police Pension Fund Trustees can alter any
of the investment plans cited above.
[to top of second column] |
Firemen's Pension Fund Investments:
1. $5,168,432.39 in a C.D. ladder program which has
approximately $1,000,000 in each of five C.D.'s with one C.D.
maturing every three months. Their next C.D. ($1,120,432.39) will
mature on October 24, 2008 and it has an interest rate of 5.127%. We
attempt to place the maturing C.D. with the same Lincoln bank
holding the current certificate as long as the quoted interest rates
for the new 15 month C.D. are competitive. There are three different
Lincoln banks holding the five separate C.D.'s at present.
2. A total of $11,592.64 invested in Illinois Funds.
3. The Lincoln Firemen's Pension Fund had a balance
of $1,209,584.69 on April 30, 2008 in a Smith-Barney annuity
investment program. The client statement on September 26, 2008
indicates the total value was $1,016,501.66 on this annuity program
purchased in December, 2003.
4. The Lincoln Firemen's Pension Fund had a balance
of $991,201.72 on April 30, 2008 in a John Hancock annuity
investment program according to the City Clerk's print out. The
client statement on September 26, 2008 indicates the total value was
$851,361.01 on this annuity program purchased January, 2007.
5. The initial investment on the two separate
annuity investment programs was $1,000,000 each and both have a 10
year guarantee of $2,000,000. The annuity insurance coverage is on
six different firemen either currently or formerly employed by the
City of Lincoln.
6. The total value of the two programs have a
current value of $1,867,862.67 compared to the initial $2,000,000
invested or a net value reduction of $132,138 according to the
client statement.
7. Only the Lincoln Firemen's Pension Fund Trustees
can alter the investment plans cited above.
[Text copied from scan of document received] |
From city treasurer's annual report
COMPARATIVE SUMMARY ON STATEMENT OF CONDITIONS
|
FUND BALANCES |
2005 |
2006 |
2007 |
2008 |
|
General Fund |
$1,314,915 |
$ 665,822 |
$1,104,373 |
$996,714 |
|
Special Revenue |
$1,272,292 |
$1,046,728 |
$1,115,459 |
$1,224,235 |
|
Debt Service |
$42,216 |
$539,908 |
$59,271 |
$58,291 |
|
Cap. Projects |
$641,387 |
$-0- |
$625,471 |
$530,679 |
|
Enterprise |
($7,458,038) |
($6,744,284) |
($6,899,532) |
($6,974,337) |
|
Internal Service |
$148,671 |
$93,944 |
$67,409 |
$17,900 |
|
Trust |
$16,414,500 |
$17,207,937 |
$17,813,506 |
$17,594,211 |
NOTE: explanation of funds mentioned above follows
expenditures.
(Return to text of article.)
[Table copied from scan of document from Lester D. Plotner, city
treasurer] |
REVENUES OVER PAST FIVE
YEARS 2003-2008
|
Source |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
2007-2008 |
|
2% Foreign Fire
Insurance |
$10,859 |
$8,780 |
$12,456 |
$11,406 |
$15,406 |
|
Building
Permits |
$16,750 |
$26,618 |
$21,858 |
$32,362 |
$26,320 |
|
Circuit Clerk |
$138,181 |
$124,825 |
$107,595 |
$94,670 |
$84,317 |
|
Donations |
$21,661 |
$15,401 |
$51,447 |
$22,824 |
$18,133 |
|
Drug Forfeiture
Funds |
-0- |
-0- |
-0- |
-0- |
|
|
Equipment
Rental |
$121,567 |
$103,211 |
$98,736 |
$132,332 |
$121,402 |
|
Franchise Fees
(Cable) |
$121,452 |
$108,893 |
$113,651 |
$118,717 |
$103,292 |
|
Grants |
$34,562 |
-0- |
$493,421 |
$8,586 |
-0- |
|
Insurance
Reimbursement |
-0- |
-0- |
-0- |
-0- |
-0- |
|
Interest |
$604,774 |
$589,548 |
$1,336,332 |
$1,351,639 |
$527,674 |
|
Licenses |
$70,328 |
$60,401 |
$69,220 |
$77,348 |
$77,766 |
|
Miscellaneous |
$47,283 |
$61,933 |
$55,798 |
$63,110 |
$72,451 |
|
Motor Fuel Tax |
$439,731 |
$634,716 |
$444,378 |
$444,636 |
$431,182 |
|
Parking Meter
Collection |
$10,755 |
$11,111 |
$9,949 |
$5,482 |
$3,566 |
|
Property Taxes |
$1,437,689 |
$1,482,358 |
$1,441,694 |
$1,553,125 |
$1,604,998 |
|
Payroll
Deductions/Contributions |
$192,307 |
$199,651 |
$201,607 |
$211,806 |
$216,378 |
|
Replacement Tax |
$174,627 |
$199,672 |
$258,492 |
$280,324 |
$320,929 |
|
Sales Tax |
$2,055,500 |
$2,124,829 |
$2,184,280 |
$2,302,356 |
$2,572,332 |
|
Sewerage
Receipts |
$2,285,634 |
$2,410,600 |
$2,482,911 |
$2,340,318 |
$2,308,220 |
|
State Income
Tax |
$930,126 |
$1,014,219 |
$1,167,125 |
$1,280,718 |
$1,322,615 |
|
Violations |
$110 |
$400 |
$1,715 |
$3,520 |
$1,490 |
|
Bond Proceeds |
$510,000 |
-0- |
-0- |
$615,000 |
-0- |
|
Telecommunication Fees |
$72,761 |
$171,453 |
$274,145 |
$495,597 |
$484,490 |
|
Loan Proceeds |
$7,590,947 |
-0- |
-0- |
-0- |
$250,000 |
|
Non-Home Rule |
$47,212 |
$616,500 |
$641,190 |
$657,220 |
$719,816 |
|
State EDP Funds |
-0- |
-0- |
-0- |
$921,005 |
$258,668 |
|
TOTAL |
$16,939,816 |
$10,007,501 |
$11,468,100 |
$13,024,101 |
$11,541,901 |
(Return to text of article.)
[Table copied from scan of document from Lester D. Plotner, city
treasurer]
COMPARATIVE EXPENDITURES OVER PAST 4 YEARS
| |
2005 |
2006 |
2007 |
2008 |
|
Salaries |
$2,724,642 |
$2,760,638 |
$2,851,265 |
$2,914,716 |
|
Fire Pensions |
$650,458 |
$678,000 |
$800,063 |
$777,952 |
|
Police Pensions
|
$581,945 |
$645,956 |
$699,228 |
$791,988 |
|
Vendors |
$5,693,192 |
$7,449,394 |
$7,092,343 |
$7,457,008 |
|
TOTAL |
$9,650,237 |
$11,533,988 |
$11,442,899 |
$11,941,664 |
(Return to text of article.)
[Table copied from scan of document from Lester D. Plotner, city
treasurer] |
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