City treasurer reports 5 revenue sources down $330,000 from previous year

[February 18, 2010]  Les Plotner, city treasurer, speaks to the city council once a month, reporting on the financial condition of the city at the end of the previous month.

Plotner was scheduled to speak Tuesday but was unable to attend the meeting.

He delivered this written report to the council and provided copies for the media.

(Copy below)

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To:
Mayor Snyder
City Clerk Martinek
City Council Members

From: City Treasurer Les Plotner

February 15, 2010

ANNUAL TREASURER'S REPORT

The Annual Treasurer's Report has now been completed and placed on file with the Logan County Treasurer.

Hopefully, it fairly presents the required components of the report which include: Revenue Summary; Compensation Summary; Fire Pension Payments; Police Pension Payments; Vendor Expenditure Summary; and the Summary Statement of Condition for the General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise Fund, and the Trust (pension) Fund.

The report is normally completed in October; however, with the required additional auditing of the financial records and the hiring of a new auditing firm by the City resulted in the annual audit not being completed until the end of November.

In addition, it was the initial time that the City Treasurer and the new City Clerk had completed the necessary research and writing of the report. A copy of the Annual Treasurer's Report (cash basis) for the Fiscal Year ending April 30, 2009 has been copied and placed at your desk in the Council Chambers.

C.P.I. FOR THE 2010 LEVY

The Consumer Price Index (CPI) "cost of living", or inflation, percentage to use in computing the 2010 extensions (taxes payable in 2011) under PTELL (property Tax Extension Limitation Law) is 2.7%. Council members should recall that it was 0.1 % for the 2009 extensions (taxes payable in 2010).

Although this increase will not solve the financial difficulties the City must overcome, it does lend a little assistance in reaching the goal of financial stability for the city.

FINANCIAL UPDATE

The Illinois Municipal League has released additional information on some of the major revenue sources for municipalities.

IML indicates that MUNICIPAL INCOME TAX distribution by the State of Illinois is down 16.0% this year from May thru December in the current Fiscal Year as compared to the same period last Fiscal Year.

According to the City Treasurer's records the distribution of Income Tax to the City for the above mentioned period is down 16.7%.

We show $846,315 (rounded off) this year compared to $1,016,144 last year for the period.

IML indicates the 1 % MUNICIPAL SALES TAX revenue distributed to municipalities from May thru December was down 10.5% as compared to the same period last year.

According to the City Treasurer's recordings the distribution of the Sales Tax to the City of Lincoln for that period was down 6.32%.

We received $1,526,915 compared to the $1,630,047 received last year over the same period last Fiscal Year.

That percentage was reduced to 4.97% when January is included in the distribution figures.

IML indicates USE TAX from May thru December of this Fiscal Year is down 17.1 % from the same eight month period last year.

According to the City Treasurer's recordings the Use Tax distributed to the City from May thru December was 17.1% less than a year ago.

The City received $122,847 this year and $148,044 last year during this period. If the January, 2010 distribution is included the percentage is 17.9% less than last year for the same nine month period.

The IML indicates the (CPPRT) Corporate Personal Property Replacement Tax revenue distributed by the State to municipalities from May thru December was 14.6% less than last year for the same period.

According to the City Treasurer's recordings the CPPRT distributed to the City during May thru December was 14.6% less than last Fiscal Year during the same period.

The City received $189,094 this year compared to $221,627 received last year.

IML did not report on NON-HOME RULE SALES TAX OR TELECOMMUNICATIONS TAX since not all municipalities have a NHR Sales Tax and some have varying rates for Telecommunications Taxes.

The City of Lincoln has collected $523,775 in NHR Taxes this year at the end of January as compared to $562,531 last year. That is a 6.88% decrease.

The Telecommunications Tax receipts thru January total $361,034 compared to $332,600 over the same period last year. That represents an 8.62% increase over last year.

SUMMARY

To date the five revenue sources reported tonight indicate that those revenue sources have received $330,488 less at the end of January in FY 2009-2010 than the amount received in those same five revenue sources in FY 2008-2009.

SHOULD THE CITY COUNCIL BE CONCERNED ABOUT THIS REDUCTION IN REVENUES???

DEFINITELY!!!!!

[LDN]