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

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

Current Economic Conditions

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

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.

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

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

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

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

Where Does Your Tax Dollar Go? Lori

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

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

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

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

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

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

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

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

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

Care & Treatment Savings

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

FY 2014 Budget Next Steps