august financial update - naperville
TRANSCRIPT
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AugustFinancial UpdateCITY OF NAPERVILLE – August 18, 2020
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Current Information
COVID CASES RISING• Positive test rate increasing • Continued increases may trigger new
control measures
BACK TO SCHOOL• Dist. 203 & 204 beginning year at home• NCC returning to school – no fall sports• May have some economic impact
2021 BUDGET PROCESS• Budget development in process• Workshops - Oct. 26, Nov. 9, Nov. 23
CARES ACT FUNDING• Will Co. allocating $2.02M to Naperville
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July State Revenues
• 29% below original projections• In line with statewide year-over-year decline at -28%
State Sales Tax
Home Rule Sales Tax
State Income Tax
Motor Fuel Tax
• 24% below original projections• Lower than statewide year-over-year decline at -19%
• 82% above original projections
• 7% below original projections
August income tax receipts sharply higher likely due to tax filing deadline
being moved to July 15
Local Use Tax• 51% above original projections – due to internet sales
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State Revenues
• August revenue rebound largely due to income tax
• Major state revenues 7% below YTD projections through August
• Monitoring sales tax trends for Phase 4 recovery
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
January February March April May June July August
Mill
ions
YTD State Shared Revenues
Budget Actual
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LocalRevenues
• Food & beverage taxes continue to show signs of recovery
• Real estate sales saw an 11% increase in July
• Hotel/Motel tax receipts for Q2 down 63% from Q1
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
January February March April May June July
Mill
ions
Mill
ions
Taxable Sales by Reporting Period
Food & Beverage Hotel/Motel Local Gas Real Estate Transfer
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Areas of Risk - Revenues
Food & Beverage
Sales continue to improve in
Phase 4
Hotel/Motel
Business/leisure travel continues
to be limited
State Sales & Motor Fuel
Improvement from prior month,
but remain constrained
Commuter Parking Fees
Less commuter rail traffic as
people telework or avoid public
transit
High Medium Low
State Income
Revenue spike in August but
unemployment remains high
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YTD Budget Review – Q2
• Revenues and expenses continue to trend below budget projections through June
• Does not account for all COVID revenue declines
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Financial Flexibility
Recommend removing restrictions through 2021 to add flexibility
Council would approve through budgetary process
Both actions supported by Financial Advisory Board
Home Rule Sales Tax
Restricted to capital & debt service
Food & Beverage Taxes
Restricted to SECA, pensions, social services & debt service
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Next Steps2021 BUDGET DEVELOPMENT
FINANCIAL DASHBOARD RELEASE
OCTOBER DEBT ISSUANCE
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QUESTIONS?