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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: May 20, 2014
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2013 and Ending December 31, 2013 (Amendment #2 for the 2013 Fiscal Year).
PURPOSE:
To obtain the City Council's approval of a proposed amendment to the 2013 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 2013 budget on December 11, 2012 through the passage of Ordinance No. O12-102.
While the city attempts to anticipate all potential expenditures for the 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.
The City Council approved one previous amendment to the 2013 City Budget on March 26, 2013.
DISCUSSION:
The attached, proposed ordinance, including its Exhibit A, would provide for certain changes in the 2013 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.
Items 1 and 6 through 15: HOME Program Fund (Offsetting Revenue and Expenditure Increases Totaling $809,004). These items serve to adjust for the remaining funds available in the HOME Program.
Items 2 and 16: Neighborhood Stabilization Program (NSP) Fund (Offsetting Revenue and Expenditure Increases of $492,500). These items serve to adjust for the remaining funds available in the NSP Program.
Items 3 and 17 through 27: Community Development Block Grant (CDBG) Fund (Offsetting Revenue and Expenditure Increases Totaling $1,160,498). These items serve to adjust the budget for funds allocated in prior years that remained to be spent in 2013 and to bring the budget into alignment with the current CDBG award letter from HUD.
Items 4, 33, and 34: Debt Service Fund (Offsetting Revenue and Expenditure Increases of $9,900,000). These items serve to adjust the budget for the effect of the issuance of the 2013 General Obligation Refunding Bonds.
Item 5: Sanitation Fund - Refuse Disposal Charges (Expenditure Increase of $2,000). This item serves to adjust the budget for slightly higher than expected costs associated with community refuse disposal services (i.e., recycling and other services supported by the environmental refuse disposal fee).
Item 28: TIF District #7 Fund - Cost of Land (Expenditure Increase of $1,600,000). This item serves to adjust the budget for the purchase of land located at 2500 N. Farnsworth Avenue for economic development purposes pursuant to Resolution No. 13-211. Adequate monies were available in the fund for the purchase.
Item 29: SSA #24 Fund - Building & Grounds (Expenditure Increase of $20,000). This item serves to adjust the budget for a reimbursement paid to the homeowners association in the Eagle Point Subdivision for common area maintenance expenses. Adequate monies were available in the fund for the reimbursement.
Item 30: SSA #21 Fund - Aurora Downtown (Expenditure Increase of $25,000). This item serves to adjust the budget for a supplemental payment made to Aurora Downtown during 2013 pursuant to Resolution No. R13-239 for special downtown improvements and promotional activities. Adequate monies were available in the fund for the payment.
Item 31: 2006 GO Bond Project Fund - Stormwater Extensions (Expenditure Increase of $130,000). This item serves to adjust the budget for the payment of final costs that will permit the bond project fund to be closed.
Item 32: 2008 GO Bond Project Fund - Neighborhood Street Improvements (Expenditure Increase of $165,000). This item serves to adjust the budget for the payment of final costs that will permit the bond project fund to be closed.
Item 35: Property & Casualty Insurance Fund - Workers' Compensation Claims (Expenditure Increase of $600,000). This item serves to adjust the budget for the payment of costs associated with workers' compensation claims that were higher than expected during 2013. Adequate monies were available in the fund for the claims.
Items 36 and 37: Property & Casualty Insurance Fund - Liability Claims (Expenditure Increases Totaling $1,050,000). This item serves to adjust the budget for the payment of costs associated with general liability claims that were higher than expected during 2013. Adequate monies were available in the fund for the claims.
Item 38: Employee Compensated Benefits Fund - Final Pay (Expenditure Increase of $1,010,000). This item serves to adjust the budget for the accrual of costs associated with employee severance, especially for firefighters and police officers, which were higher than expected during 2013. Adequate monies were available in the fund for the accrual of the costs.
Items 39 and 40: Retiree Health Insurance Trust Fund - Liability Claims (Expenditure Increases Totaling $700,000). This item serves to adjust the budget for the payment of costs associated with the medical insurance claims that were higher than expected during 2013. Adequate monies were available in the fund for the payment of the claims.
If the proposed budget amendment is approved, budgeted expenditures in the 2013 budget will increase from $397,196,860 to $414,860,862.
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #2 to the 2013 City Budget.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
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, 2013 And Ending December 31, 2013. (Amendment #2 For The 2013 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. O12-102 on December 11, 2012 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2013 and ending December 31, 2013; and
WHEREAS, the City Council approved Ordinance No. O13-014 on March 26, 2013 adopting an amendment to the annual budget for the fiscal year beginning January 1, 2013 and ending December 31, 2013; and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2013 fiscal year that were unanticipated at the time the annual budget for 2013 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, 2013 and ending December 31, 2013 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, 2013 and ending December 31, 2013 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.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
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City Clerk Mayor