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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: May 27, 2015
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2014 and Ending December 31, 2014 (Amendment #2 for the 2014 Fiscal Year).
PURPOSE:
To obtain the City Council’s approval of a proposed amendment to the 2014 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 2014 budget on December 17, 2013 through the passage of Ordinance No. O13-112.
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.
The City Council approved one previous amendment to the 2014 City Budget on April 8, 2014.
DISCUSSION:
The attached, proposed ordinance, including its Exhibit A, would provide for certain changes in the 2014 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 12: Neighborhood Stabilization Program (NSP) Fund (Offsetting Revenue and Expenditure Increases of $240,000). These items provide for the incurrence of costs to exhaust the remaining funds available in the NSP Program.
Items 2, 3, 14, and 15: Community Development Block Grant (CDBG) Funds (Offsetting Revenue and Expenditure Increases Totaling $116,000). These items adjust for CDBG funds allocated in prior years that remained to be spent in 2014.
Items 4 and 21: Debt Service Fund (Offsetting Revenue and Expenditure Increases of $9,200,000). These items adjust for the issuance of the city’s 2014 General Obligation Refunding Bonds.
Items 5 and 24: Transfer from the Employee Health Insurance Fund to the Property and Casualty Insurance Fund ($1,500,000). These items provide resources to the Property and Casualty Insurance Fund to cover workers’ compensation claims expenses that were greater than expected during the year.
Item 6: Election Commission Operating Costs, General Fund (Expenditure Increase of $120,000). This item provides for the payment of costs incurred by the Aurora Election Commission that were greater than expected during the year.
Item 7: Salaries/Overtime, Finance Department, General Fund (Expenditure Increase of $10,000). This item provides for the payment of overtime costs incurred by the Finance Department’s Accounting Division to accomplish necessary work that could not be done during 2013 due to staff vacancies.
Items 8 through 11: Salaries/Full-Time/Prior Year Retro, Various Departments, General Fund (Expenditure Increases Totaling $242,000). These items provide for the payment of retroactive pay increases related to the settlement of collective bargaining agreements.
Item 13: Other Supplies, Foreign Fire Insurance Tax Fund (Expenditure Increase of $1,000). This item provides for the payment of costs for firefighting-related supplies that were greater than expected during the year. Adequate fund balance was available in the fund to cover the additional costs.
Item 16: Payment to Refunded Bond Escrow, Section 108 Loan Fund (Expenditure Increase of $765,000). This item provides for the early redemption of loans accepted from the U.S. Department of Housing and Urban Development under the department’s Section 108 Loan Program. Resources on hand in the Section 108 Loan Fund made the early redemptions possible.
Item 17: Bell Gale Industrial Park, TIF District #4 Fund (Expenditure Increase of $80,000). This item provides for the payment of redevelopment costs for the Bell Gale project for which the developer qualified for reimbursement under Resolution No. R12-239. Adequate fund balance was available in the fund to cover the costs.
Item 18: Building & Grounds, SSA #27 (Concord Valley) Fund (Expenditure Increase of $2,000). This item provides for the payment of costs associated with maintaining common areas in the Concord Valley subdivision that were greater than expected during the year. Adequate fund balance was available in the fund to cover the costs.
Item 19: Park Improvements, 2008A TIF Bond Project (TIF District #6) Fund (Expenditure Increase of $3,000). This item provides for the payment of eligible redevelopment costs in TIF District #6 (East River Area). These were the final expenses to be recorded in the bond fund to permit its closure.
Item 20: Neighborhood Street Improvements, 2009 General Obligation Bond Project Fund (Expenditure Increase of $35,000). This item provides for the payment of costs associated with the accomplishment of neighborhood street improvements that were greater than expected during the year. These were the final expenses to be recorded in the bond fund to permit its closure.
Items 22 and 23: Workers’ Compensation Claims, Property and Casualty Insurance Fund (Expenditure Increases Totaling $1,735,000). These items provide for the payment of costs associated with workers’ compensation claims incurred by employees in the Police Department and Public Properties Department that were greater than expected during the year. In addition to some money on hand in the Property and Casualty Insurance Fund, the interfund transfer reflected in items 5 and 24 provided the resources needed to pay the additional costs.
If the proposed budget amendment is approved, budgeted expenditures in the 2014 budget will increase from $408,598,671 to $422,647,671
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #1 to the 2014 City Budget.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2014 and Ending December 31, 2014 (Amendment #2 for the 2014 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. O13-112 on December 17, 2013 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2014 and ending December 31, 2014; and
WHEREAS, the City Council approved Ordinance No. O14-013 on April 8, 2014 adopting an amendment to the annual budget for the fiscal year beginning January 1, 2014 and ending December 31, 2014; and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2014 fiscal year that were unanticipated at the time the annual budget for 2014 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, 2014 and ending December 31, 2014 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, 2014 and ending December 31, 2014 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.
PRESENTED to the City Council of the City of Aurora, Illinois, on 16th day of June, 2015.
FILED for inspection on 16th day of June, 2015.
PASSED by the City Council of the City of Aurora, Illinois, this 23rd day of June, 2015.
AYES _____ NAYS _____ ABSENT _____
APPROVED AND SIGNED by the Mayor of the City of Aurora, Illinois, this 23rd day of June, 2015.
______________________________
Mayor
ATTEST:
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City Clerk