Digital Access

Digital Access
Access kendallcountynow.com and all Shaw Media Illinois content from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Subscribe to your local paper.

Text Alerts

Text Alerts
Get text messages on your mobile device with news, weather and more from Kendall County Now.

Email Newsletters

Email Newsletters
In our Morning Update newsletter, we'll send you a mix of our best stories and the most recent obituaries emailed directly to you Monday through Friday so you can keep up with what's happening in Kendall County.
Local News

COVID-19 impact on Yorkville city budget not as bad as anticipated, council told

File photo: Rob Fredrickson, finance director for the United City of Yorkville, listens during an Oct. 22, 2019 City Council meeting at City Hall in Yorkville.
File photo: Rob Fredrickson, finance director for the United City of Yorkville, listens during an Oct. 22, 2019 City Council meeting at City Hall in Yorkville.

YORKVILLE – Yorkville city officials are reporting that the financial impact to city budgets due to the COVID-19 pandemic wasn't as bad as originally anticipated.

Rob Fredrickson, finance director for the United City of Yorkville, presented the city's fourth quarter budget review for fiscal year 2020 during the Tuesday, July 28 City Council meeting. He said most of the city's revenue streams have been resilient thus far despite the pandemic.

“Really, so far, so good, I guess, is the story for the general fund,” Fredrickson said.

Fredrickson said that sales tax revenue is predicted to finish at about $3.2 million for the city.

“Which is a 5% increase year over year – which is an extremely strong increase for sales tax and good to see,” Fredrickson said.

Fredrickson said at-home sales tax revenue should finish at about $2.4 million, which is up about 2% over last year. He said local use, after it increased about 20% from the previous fiscal year, is going to increase another 15% for fiscal 2020 and finish at around $665,000.

Fredrickson said the income tax is down for the fourth quarter of the 2020 fiscal year, unfortunately, but only by a little bit. He said the actual income tax has been essentially flat in comparison to April 2019.

“All in all, the general fund should have a total revenue of about $16.6 million and total expenditures are around $15.9 million, which puts our surplus right around $630,000 mark estimated at this point,“ Fredrickson said.

Fredrickson said the general fund balance is up north of $7.5 million, or at 47%.

“Which is the highest it’s ever been that I’ve been able to find in the city’s history,” Fredrickson said.

However, Fredrickson said, the city would be closer to $5 million, or at 32%, for the fund balance when including tax increment financing, or TIF, funds – which accounts for about $2.4 million in negative fund equity.

Fredrickson said the city's parks and recreation revenue funds have been the most affected by the pandemic due to the social nature of most recreational activities. He said those revenues are expected to be about $130,000 below budget.

The Tuesday update came after Fredrickson provided a more pandemic-specific budget update for April – the first full month affected by the pandemic due to the state's stay-at-home order – during the July 14 City Council meeting.

Fredrickson had said he also was pleased to report that sales tax in April 2020 essentially came in flat from April 2019 – or $257,000 versus $259,000.

“It’s down by only about two-thirds of one percent, so it was a good thing to see,” Fredrickson had said.

Fredrickson had said home rule sales tax also was down by about 13%.

“I presume that it has something to do with the type of items that people were buying during the pandemic” like food or other household goods, which would be applicable to municipal sales tax rate but exempt from the non home rule sales tax rate, Fredrickson had said.

Fredrickson had said the income tax for April 2020 increased by about 6% — or $188,000 in April 2020 versus $187,000 from April 2019. He said local use year over year increased by 29%.

“So that’s very encouraging as well," Fredrickson had said.

Yorkville Mayor John Purcell said during the Tuesday meeting that the report sounded like a strong finish to the 2020 fiscal year from a financial standpoint after all.

“And that’ll help us this year until things level off a little bit,” Purcell said.

Loading more