Peoria finance director: December 2024 unaudited report shows revenue dip, cash flow dip from bond payments; audit to begin in February

The Peoria City Council heard details of the city’s month‑ended Dec. 31, 2024 unaudited financial report and asked questions about revenue trends, accounting methods and the potential impact of state budget pressures.

Finance Director Kyle Crotty told the council the report in the packet covers Dec. 31, 2024 and that the figures are not final. “There are additional revenues and, to a lesser extent, some potentially additional expenses that will come in as we start preparing for our audit,” Crotty said. He said the city’s audit will begin in February and will be “kicking off heavily in March,” with a relatively finalized 2024 number anticipated in April.

Crotty said general fund revenues shown on the accrual‑basis report are down 13.8% while expenses are down about 4.7%. He explained that timing differences on tax remittances affect those accrual figures: “With state sales tax, there’s a three‑month lag between collection from the business and remittance to us at the city,” and the report therefore includes additional months of receipts that will normalize as later payments are recorded.

On the city’s cash position, Crotty told the council that the cash‑flow dip observed in December is largely driven by bond principal payments. “Our bond payments come out in the month of December. That usually is about 15 to $17 million because the final payment of the year is our principal payments,” he said, explaining why cash held declined from roughly $185 million to about $169 million in December.

Council Member Kelly pressed for clarification on comparisons to the 2024 budget and the distinctions between cash and accrual presentations. Crotty said the packet charts were presented on a cash basis for ease of comparison and reiterated that timing lags on sales and income tax remittances explain differences between cash and accrual presentations.

Council Member Cyr asked Crotty to explain accrual versus cash accounting; Crotty responded that the financial report is prepared on the accrual basis and that the city will convert to modified or full accrual at year end depending on the fund.

Crotty also told council members that while some headline percentages could cause concern, the city expects to receive additional revenues in the coming months that should align results with budgeted expectations. He said staff monitors possible state actions that could reduce revenues and that the city will continue advocacy through the Illinois Municipal League and with legislators.

Council accepted the report by unanimous vote; Crotty and the manager were directed to continue audit preparations and to report back with finalized year‑end figures.

Ending: Council members were advised the audit will proceed in February and March with finalized 2024 numbers expected in April; the report heard by the council was unaudited.