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TO: Mayor Richard C. Irvin, Mayor
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
Stacey L. Peterson, Assistant Director of Finance
DATE: March 26, 2020
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2019 and Ending December 31, 2019 (Amendment #3 for the 2019 Fiscal Year)
PURPOSE:
To obtain the City Council’s approval of a proposed amendment to the 2019 City Budget.
BACKGROUND:
Pursuant to 65 ILCS 5/8-2-9.1 through 9.10, the City of Aurora operates under the budget system of government finance. The City Council adopted the 2019 budget on December 11, 2018 through the passage of Ordinance No. O18-099.
While the city attempts to anticipate all potential expenditures for a fiscal year when that year’s budget is developed, circumstances occasionally arise that require expenditures that were not contemplated in the original financial plan. 65 ILCS 5/8-2-9.6 permits a municipality operating under the budget system to amend its annual budget by a two third’s vote of its governing body.
DISCUSSION:
The attached, proposed ordinance, including its Exhibit A, would provide for certain changes in the 2019 City Budget. Below is an explanation for each change. The item numbers discussed below correspond to the item numbers assigned to each change detailed in Exhibit A.
Amendments Impacting the Budget
Items 1 and 13: Grants/Other, General Fund (Offsetting Revenue and Expenditure Increase of $10,000). These items adjust the budget to account for sponsorship donations for the Homeownership Expo.
Items 2 and 3, 32 and 33: Gaming Tax Fund (Revenue Increases $9,800,000 and Expenditure Increases $8,034,100). These items adjust the budget to account for the Lines of Credit used for the purchase of the Bilter Road properties, which will be used for future economic development projects.
Items 4 through 6 and 34 through 35: Economic Development, TIF #10 Galena/Broadway Fund (Revenue Increases $1,429,400 and Expenditure Increases $1,216,000). These items are associated with the Terminal building redevelopment project.
Items 7 and 36: Economic Development, TIF #11 Benton/River Fund, (Revenue Increases $300,000 and Expenditure Increases $283,400). These are associated with the 80 S. River redevelopment project.
Items 8 and 37: Economic Development, TIF # 13 River/Galena Fund (Revenue Increase $800,000 and Expenditure Increases $640,100). These are associated with the Hobbs redevelopment project.
Items 9 and 10, 38 through 40: Economic Development, TIF #14 Lincoln/Westin Fund (Revenue increase $3,000,000 and Expenditure Increases $3,029,800). These items are associated with Phase I of the old Copley redevelopment project.
Items 11 and 12, 42 and 43: Debt Service Fund (Revenue increase $8,247,000 and Expenditure Increase $8,185,000). These items are associated with the Refunding of General Obligation Bonds Series 2009A and Series 2019B.
Items 14 through 21: Fire Department, General Fund (Expenditure Increase Totaling $1,916,000). These items adjust the budget to account for the increase in salary compensation due to the settlement of the contract which has been expired since 2017.
Items 22 through 28: Police Department, General Fund (Expenditure Increase of $2,942,400). These items adjust the budget to account for the increase in salary compensation due to the settlement of the contract which has been expired since 2017. The 2020 budget has been increased to account for the settlement of the contract.
Item 29: E911 Center, General Fund (Expenditure Increase of $77,300). During the 2019 budget review, the 911 salary and benefits accounts were reduced to reflect the inability to achieve full staffing.
Item 30: Phillips Park Zoo, General Fund (Expenditure Increase Totaling $6,000). This item adjusts the budget for a grant the zoo received in 2019.
Item 31: Disposal Refuse Charges Sanitation Fund (Expenditure Increase Totaling $79,600). This item services to provide resources for the payment of refuse disposal charges that were higher than expected.
Item 41: Economic Development, TIF #4 Bell Gale Fund (Expenditure Increase Totaling $3,000). This item adjusts the budget to for the payment of an economic development agreement.
Item 44 and 45: Property and Casualty Insurance Fund (Expenditure Increase Totaling $829,000). These items provide resources to cover the cost of insurance claims during 2019 that were higher than expected.
Item 46: Employee Compensation Fund (Expenditure Increase Totaling $122,000). This item adjusts the budget to account for slightly higher retirement and separation expenditures citywide.
Item 47: Fire Pension Fund (Expenditure Increase Totaling $74,000). This item adjusts the budget to account for a duty disability pension during 2019 that was higher than expected.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #3 to the 2019 City Budget.
cc: Robert J. O’Connor, Alderman
Carl Franco, Alderman
Edward Bugg, Alderman
Scheketa Hart-Burns, Alderman
Emmanual Llamas, Alderman
Alex Alexandrou, Chief Management Officer
Richard Veenstra, Corporation Counsel
Jennifer Stallings, City Clerk
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Amending The Annual Budget For The Fiscal Year Beginning January 1, 2019 and Ending December 31, 2019 (Amendment #3 For The 2019 Fiscal Year).
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City Council approved Ordinance No. O99-96 on November 9, 1999 adopting the budget system of finance for the City in lieu of the appropriation system in accordance with 65 ILCS 5/8-2-9.1 et. seq. and Code Section 2-312(a); and
WHEREAS, the City Council approved Ordinance No. O18-099 on December 11, 2018 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2019 and ending December 31, 2019; and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2019 fiscal year that were unanticipated at the time the annual budget for 2019 was adopted but are necessary so as to ensure the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora, in an exercise of its home rule powers, desires to amend its annual budget for the fiscal year beginning January 1, 2019 and ending December 31, 2019 so as to provide for the incurrence of said expenditures that were unanticipated at the time the annual budget was adopted; and
WHEREAS, adequate monies are available in the City treasury to pay said unanticipated expenditures.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the annual budget of the City of Aurora for the fiscal year beginning January 1, 2019 and ending December 31, 2019 is amended as shown in the attached Exhibit A.
SECTION 2: That this ordinance shall be in full force and effect, and shall be controlling upon its passage and approval.
SECTION 3: That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
SECTION 4: That any Section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining Sections or provisions, which shall remain in full force and effect thereafter.