Forecast of city revenues right on the money         

City treasurer reviews past, current and outlook

[FEB. 12, 2007]  ^"A shade under," "in the ballpark" and "could go over what was expected" were phrases that city of Lincoln Treasurer Les Plotner aptly used in comparing current to budgeted income in his "State of the State" review of city revenues. This was one of two telltale reports he provided city leaders over the last two months. Both documents provided two-year comparatives of current and prior year income streams.

At the end of December, Plotner provided aldermen with a report detailing revenues from sales and use taxes and non-home-rule taxes, category by category.

The figures showed two-year incomes from August to August that might be used to interpret the impact of business growth and the agreements that the city made with some new businesses. He recommended that aldermen take a serious look at the individual categories and use this information in future decisions.

He observed that the sales tax from apparel dropped from $27,290.89 to $25,297.56.

There was not a great advancement in the sales/use tax, only 1.33 percent gain, Plotner said. Non-home rule was up only slightly at 0.45 percent, but that was better than down, he said.

(See below for "Comparison of Sales/Use Taxes Distributed to City of Lincoln.")

"State of the state"

Plotner also compiled fiscal year-to-date revenue figures through December 2006. The city fiscal year runs from May 1 to April 30. To provide an estimate on how the year is going, Plotner walked the council through the current figures, projecting to the end of this fiscal year on last year's figures.

The left column showed year-to-date figures from the same time period, comparing the 2005-2006 fiscal year with the 2006-2007 fiscal year.

In the right-hand column are the figures of remaining fiscal year revenues that came in this time period forward.

Plotner added the year-to-date figures and extrapolated anticipated income for the remainder of the year from the payments that came in on last year's remaining fiscal year.

In short, revenues for the 2006 portion of this fiscal year are up in all but one category, non-home rule, which is only down slightly, 0.03 percent.

Telecommunications represented the greatest increase at 97 percent. That will taper off, as it is nearing the one-year point when the tax income increased from 3 percent to 6 percent.

A summary of those figures:

(Category; payments to date this fiscal year + projected incomes based on fiscal year last year = current projection; budgeted this fiscal year)

• Income tax:
  $801,830 + $443,690 = $1,245,520
  $1,210,000

• Non-home rule:
  $432,303 + $207,372 = $639,675
  $642,500

• Telecommunications:
  $329,851 + $106,712 = $436,563
  $460,000

• Sales/use tax:
  $1,508,824 + $707,280 = $2,216,104
  $2,215,000

• Replacement tax:
  $185,259 + $124,809 = $310,068
  $293,000

Finance chairman Verl Prather thanked Plotner and City Clerk Melanie Riggs for their hard work in gathering the figures for the budget; their accuracy is now showing.

The report did not include property taxes, which Plotner said are mostly the same, but may come in just slightly under.

(See below for complete "State of the State" figures.)

In other financial matter Plotner reported that the police and firemen's pension funds were doing well and at last report in December 2006 were at $9,215,731 (police) and $7,449,567 (firemen). He reviewed where the funds are invested and went on to explain that Illinois has legislated that by July 2007 there can be no Illinois government money invested in Sudan. He said that he has asked around and the new law has its challenges for local government. He said that mutual fund investors are saying that it's difficult to actually certify that money is not in Sudan. January could still have 60 percent investments. So, there's time to get more information before July, he said.

Entering the new year the Lincoln aldermen approved a $1,531,299.79 (without general obligation bonds) tax levy for the May 1, 2006, to April 30, 2007, fiscal year.

[]

(Copy of report from city treasurer)

COMPARISON OF SALES/USE TAXES DISTRIBUTED TO CITY OF LINCOLN

			Non-Home Rule
Category	8/1/04-7/31/05	8/1/05-7/31/06	04-05	05-06
Gen. Merchandise	$ 329,333.95	$ 326,975.15	$ 127,055.82	$ 124,322,54
Food	254,362,32	282,845.50	36,214.66	40,111.85
Drinking/Eating Places	237,856.44	242,600.92	117,273.05	120,065.94
Apparel	27,641.51	27,203.44	13,817.64	13,601.87
Furniture, H.H., Radio	27,290.89	25,297.56	11,365.66	12,636.39
Lumber, Bldg. Hardware	78,358.32	86,159.53	39,162.35	42,909.71
Automotive, Fill. Stations	667,551.85	651,522.56	189,177.43	178,655.34
Drugs, Misc. Retail	185,730.55	172,365.53	35,250.94	33,965.71
Agriculture/ All Others	143,807.08	161,357.19	54,131.02	58,118.40
Manufacturers	29,647.30	27,111.75	9,636.89	11,549.80
TOTAL	$1,977,080.21	$2,003,439.23	$633,085.46	$635,937.55

Sales/Use Tax	+ 1.33%
Non-Home Rule	+ .45%

 

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(Copy of report from city treasurer)

A “STATE OF THE STATE” LOOK AT REVENUES RECEIVED THROUGH DECEMBER 2006, COMPARED TO REVENUES RECEIVED THROUGH DECEMBER 2005

Income Tax (7 Payments)
FY 2005-2006	$   723,430
FY2006-2007	$   801,830	FY 2005-2006 Revenues Over Last 5 Payments Was $ 443,690
Dollar Increase	$     78,400
% Increase Over Last Year	+ 10.8%
Budget For FY 2006-2007	$ 1,210,000
Non-Home Rule (7 Payments)
FY 2005-2006	$   433,814
FY 2006-2007	$   432,303	FY 2005-2006 Revenues Over Last 4 Payments Was $ 207,372
Dollar Increase	$    - 1,511
% Increase Over Last Year	-  .03
Budget For FY 2006-2007	$   642,500
Telecommunications (8 Payments)
FY 2005-2006	$   167,407
FY 2006-2007	$   329,851	FY 2005-2006 Revenues Over Last 4 Payments Was $ 106,712
Dollar Increase	$   162,444
% Increase Over Last Year	+ 97%
Budget For FY 2006-2007	$   460,000
Sales/Use Tax (8 Payments)
FY 2005-2006	$ 1,476,985
FY 2006-2007	$ 1,508,824	FY 2005-2006 Revenues Over Last 4 Payments Was $ 707,280
Dollar Increase	$      31,839
% Increase Over Last Year	+ 2.15%
Budget For FY 2006-2007	$ 2,215,000
Replacement Tax (5 Payments)
FY 2005-2006	$   172,571
FY 2006-2007	$   185,259	FY 2005-2006 Revenues Over Last 3 Payments Was $ 124,809
Dollar Increase	$     12,688
% Increase Over Last Year	+ 7.35%
Budget For FY 2006-2007	$   293,000	(Includes All Distributions)

Les Plotner, City Treasurer (January 16, 2007)