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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: September 17, 2018
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2018 and Ending December 31, 2018 (Amendment #1 for the 2018 Fiscal Year)
PURPOSE:
To obtain the City Council’s approval of a proposed amendment to the 2018 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 2018 budget on December 12, 2017 through the passage of Ordinance No. O17-087.
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 2018 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 8: Ambulance Fees, General Fund (Offsetting Revenue and Expenditure Increase of $71,000). These items adjust the budget to account for ambulance collection fees.
Items 2 and 10 through 17: HOME Program (Offsetting Revenues and Expenditures Increases Totaling $1,713,900). These items adjust the budget for the actual annual HOME Program allocation to the city. At the time the 2018 budget was prepared we did not have final allocation information. The amounts included in the original 2018 budget reflected only an estimate of the allocation.
Items 3 and 18 through 19: Emergency Solutions Grant (ESG) Fund (Offsetting Revenues and Expenditures Increases Totaling $136,300). These is a new HUD entitlement program which was awarded for 2018.
Items 4 and 20 through 26: Block Grant Fund (Offsetting Revenues and Expenditures Increases Totaling $1,626,000). These items adjust the budget for the actual annual CDBG Program allocation to the city. At the time the 2018 budget was prepared we did not have final allocation information. The amounts included in the original 2018 budget reflected only an estimate of the allocation.
Items 5 through 7: Special Events, General Fund (Expenditure Increase Totaling $39,500). These items provide resources for costs associated with crowd control fencing for parades.
Item 9: Streets, General Fund (Expenditure Increase Totaling $170,000). This item is being increased due to snow events that happened earlier in the year.
Item 27: Capital Machine/Equipment, Police, Equitable Sharing Justice Fund (Expenditure Increase of $140,000). This item is for the purpose of updated the Aurora Police Department’s Mobile Command Post with digital technology and improved layout for more efficient operations.
Item 28: Park Improvements, Parks and Recreation Division, 2017 GO Bond Fund (Expenditure Increase of $250,000). This item is to provide for an interactive Mastodon Exhibit. The city received an OSLAD grant in the amount of $400,000.
If the proposed budget amendment is approved, budgeted expenditures in the 2018 budget will increase from $417,941,910 to $422,088,710. . This total amendment across all Funds of $4,146,800 is offset by revenues of $3,389,000, however no amendment is required for this change in revenues. No additional revenues are requested as a part of this amendment.
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IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would affect Amendment #1 to the 2018 City Budget.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2018 and Ending December 31, 2018 (Amendment #1 for the 2018 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. O17-087 on December 12, 2017 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2018 and ending December 31, 2018; and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2018 fiscal year that were unanticipated at the time the annual budget for 2018 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, 2018 and ending December 31, 2018 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, 2018 and ending December 31, 2018 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.