By Stephen Nelson
At its meeting on Monday, October 21, the Frankfort Village Board made public the financial report for the fiscal year that ended on April 30.
The report, created by the village administrator and finance director, states: “The village remains in a strong financial position as evidenced by an excellent performance of some of the village’s largest revenue sources.
“Sales tax continues to be the largest revenue source. The village’s non-home rule sales tax, which was implemented in the fall of 2019, has had a significant impact on overall sales tax growth.
“Sales tax also remains strong due to a change in Illinois law, which now enforces collections on internet sales transactions.
“Income tax has increased due to the local governments share of individual income tax collections increasing during the past two years. Due to better investment opportunities and favorable interest rates, investment income realized a significant increase over prior years.
“Water and sewer receipts continue to sufficiently support operations and capital improvements.
“All of these major sources of revenues continue to help support not only ongoing operating expenses but future capital needs within the village, including the street resurfacing program and water and sewer infrastructure projects. Despite the rising costs due to inflation, operating expenditures for the fiscal year came in under budgeted projections, which was a result of conservative spending by the departments. Overall, revenues exceeded expenditures, resulting in a transfer to the capital fund, which will assist in supporting ongoing and future projects. Despite fears of high interest rates, high inflation, slowing growth, and consumer spending, the economy has surprisingly delivered relatively strong results.”
The report concludes that “The Village of Frankfort enters fiscal year 2025 on a sound financial basis. The village expects the General Fund to continue to generate excess revenues above expenditures. These remaining revenues, which are not used for operational costs, will allow the village to continue to transfer funds to the Capital Fund to pay for future capital improvements. The village continues to seek federal and state funding grants to assist in the cost of these improvements. The village continually analyzes various expense controls and funding sources through its long-term financial planning process. The mayor and village board and staff’s sound management of fund reserves and conservative spending habits continue to contribute to the village’s financial stability.”