1. Overview of 2013 Finances Year-to-Date and 2014 Budget Preparation
Peoria County, Illinois
August 8, 2013

2. Overview Current Economic Conditions FY 13 Update Long Term Planning
Next Steps
Lori

3. Current Economic Conditions

4. 10 Year Sales Tax History (Supplemental Taxes)
Eric:
2008 recession shown by the black line
See effects of recession
Now recovered from the impact recession
However, expenditures have grown consistently during this period

5. 10 Year Sales Tax History (Supplemental Taxes) by SIC Code
Broken down by standard industrial classification code
Black line 2008
Growth in: food, drinking & eating places, auto & filling stations, drugs & misc retail
Increase in sales price
At or near levels in: General merchandise, apparel, manufacturers
Still behind in: furniture, lumber, building & hardware, and agriculture.

6. Income Tax Area chart show the 13 budget
Solid lines show actual revenues
Dotted black line is YTD 13 revenues
Near our 08’ levels

7. CPPRT Area chart show the 13 budget Solid lines show actual revenues
Dotted black line is YTD 13 revenues
Near our 08’ levels

8. Real Estate Information Median Home Sales vs. County EAV
Lag between market prices and EAV
Blue line shows market
Red line show EAV
Delay in reduction of EAV
Market values climbing back up
If this continues, EAV should soon pick up as well
Not the case in tax year 2013
1.5% drop in EAV = $400,000 loss
Median Home Sales – Each June from 2002 to 2013
Estimated 1.5% decrease in EAV for Tax Year 2013
1.5% Drop in EAV = Loss of $391,098
2.0% Drop in EAV = Loss of $521,465

9. Certified Tax Rate Tax rate history Tax levies grew due to grow in EAV
Tax rate has dropped through the years
No long experiencing growth in EAV
Results in a drop in property tax revenues
Greater reliance on income elastic revenue sources like sales taxes

10. Where Does Your Tax Dollar Go?
Lori

11. Total County Budget by Source vs. Nominal GDP
Next 3 slides show the county’s revenues and expenditures
vs nominal gross domestic product for the Peoria area
Notice the decline in Nominal GDP
How it corresponds with the County’s revenues

12. Total County Budget by Use vs. Nominal GDP
This graph shows expenditures by use vs nominal GDP
Same pattern for the most part
Notice the “other category” and its growth in 2008, 2010, 2011 and 2012
Large capital projects with debt as the source took place

13. Total County Budget by Function vs. Nominal GDP
Same chart with expenditures by function
Community development in 1011 and 2012 relates to the museum

14. General Fund Revenues & Expenditures vs. Nominal Gross Domestic Product
Budgeted General Fund revenues and expenditures
vs nominal GDP
Budget adjustment needed to occur due to recession.
8% growth in revenue
21% growth in expenditures 27
% growth in nominal gdp

15. Comparison of Total Revenues Through May 2013
Month of June will be closed early next week
Down $4 million from last year through May
$1.4 million reimbursement from Lakeview Musem to PRM last year
$1m transfer to capital projects has not yet taken place this year
$550k reduction in charges for service
Timing of sales tax receipts
Close to $1.2 million in sales taxes came in after the May closing
$90k up without these issues

16. Comparison of General Fund Revenues Through May 2013
Charges for Service down $320,000
Change in collection services
Intergovernmental revenues are down $807,000
Difference in timing of sales tax receipts
$941,000 received after the period was closed
Up $135,000 due to increases in income tax and cpprt
Total down $215,000 due to the decreased charges in services

17. Comparison of Total Expenditures Through May 2013
Up in labor costs due to a three pay period month in May 2013
Down in most other places
Note the $1million transfer not taking place yet in 2013
Capital had the largest decrease in expenditures due to PRM construction last year

18. Comparison of General Fund Expenditures Through May 2013
Personnel costs are up from last year
Three pay periods in May 2013
Three pay periods in May 2012

19. Long Term Planning Uncertain Long Term Health Expenses Heddington Oaks
Capital Funding
Infrastructure
Vehicle Replacement
Landfill
Springdale Cemetery
Debt Service Payments

20. Care & Treatment Savings

21. Summary No major surprises Flood expenses
Economic recovery continues to be slow
Revenues are currently at 2008 levels
Expenditures have outpaced revenues since 2008
Outlook is still cautiously optimistic
Need to fund unmet long term needs
Initial General Fund Request from Offices / Departments
$44.6 Million
Bottom Line for FY 2014
$43.7 Million
General Fund “Gap”
Approximately $850 Thousand

22. FY 2014 Budget Next Steps