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TO: Mayor John Laesch
FROM: Stacey L. Peterson, Chief Financial Officer/City Treasurer
DATE: May 11, 2026
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2025 and Ending December 31, 2025 (Amendment #8 for the 2025 Fiscal Year)
PURPOSE:
To obtain the City Council’s approval of a proposed amendment to the 2025 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 2025 budget on December 3, 2024 through the passage of Ordinance No. O24-079.
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 2025 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 23: S.P. Other Events/Programs, General Fund (Offsetting Revenue and Expenditure Increase of $41,000). These items adjust the budget to account for the opioid use disorder grant program.
Items 2 and 51: Transfer from TIF #17 Farnsworth/Bilter Fund to 2022B taxable GO Bonds ($8,279,300). This transfer is to reclassify the 2022B Taxable general obligation bonds to its own fund.
Items 3 and 4; 38 through 41: Home Program Fund (Offsetting Revenues and Expenditures Increases totaling $328,800). These items adjust the budget for the actual annual Home Program allocation to the city. At the time the 2025 budget was prepared, we did not have the final allocation information. The amounts included in the original 2025 budget reflected only an estimate of the allocation.
Items 5 and 43 through 48: Block Grant Fund (Offsetting Revenues and Expenditures Increases totaling $21,500). These items adjust the budget for the actual annual CDBG Program allocation to the city. At the time the 2025 budget was prepared, we did not have the final allocation information. The amounts included in the original 2025 budget reflected only an estimate of the allocation.
Items 6 and 19: Transfer from General Fund to TIF #18 DAC Fund ($3,241,300). This is to provide resources to pay obligations per the development agreement Resolution No. R21-204.
Items 7 and 42: Transfer from Gaming Taxing Fund to TIF # 18 DAC Fund ($3,000,000). This is to provide resources to pay obligations per the development agreement Resolution No. R21-204.
Items 8 and 20: Transfer from General Fund to TIF #19 110 Cross Fund ($375,000). The transfer was necessary to provide resources to pay obligations per the development agreement Resolution No. R23-076.
Items 9 and 59: Transfer from ARPA Fund to SHAPE Fund ($1,380,300). This is the reclassifying of interest from ARPA.
Items 10 through 16 and 64 through 91: 2025 General Obligation Bonds. These items are to adjust for the three bond issues that took place in 2025. At the time the 2025 budget was prepared, we did not have the final allocation information.
Items 17 and 21: Transfer from General Fund to Property and Casualty Insurance Fund ($6,000,000). This transfer provides resources to the Property and Casualty Fund to cover the accrued costs associated with property and casualty insurance claims.
Item 18 and 22: Transfer from General Fund to Employee Compensation Fund ($2,300,000). This transfer provides resources to cover the retirement severances that were higher than expected in 2025.
Items 24 through 26: Special Programs/S.P, Economic Development, General Fund (Increase Expenditure by $591,800). These items provide resources to cover the final payment of $33,400 for Lindsay Windows redevelopment agreement per Resolution No. R20-242. The economic development payment of $466,900 for the river street bistro redevelopment agreement per Resolution No. R23-075, and the payment of $100,000 for the economic development agreement with JH River & Cross per Resolution No. R23-076.
Item 27: Salaries/Overtime/Sworn, Fire, General Fund (Expenditure Increase by $631,000). This item serves to adjust the budget for overtime costs that were greater than expected during the year.
Items 28 and 29: Salaries Full-time Sworn and Overtime Sworn, Police, General Fund (Expenditure Increase of $3,363,000). This item serves to adjust the budget for salaries and overtime costs that were greater than expected.
Item 30 through 32: Salaries/prior year retro, Overtime, and Benefits, Equipment Services (Expenditures Increase of $76,700). This item serves to adjust the budget for salaries and overtime costs that were greater than expected.
Item 33: Supplies Maintenance Repairs, Equipment Services (Expenditure Increase of $37,000). This is to provide resources to cover additional repairs that were higher than expected for the year.
Item 34: Paydown LOC, 2022B Taxable Bonds (Expenditure Increase of $6,688,000). This item adjusts the budget to account for the paydown of the line of credit.
Item 35: Grant to ACCA, 2022B Taxable Bonds (Expenditure Increase of $1,069,000). This is to adjust the budget for the grant to Aurora Civic Center Authority for the riverwalk construction project R24-308.
Item 36: Rental/Leases/Computer, ETSB Fund (Increase Expenditure by $796,700). This is to adjust the budget for the purchase of computer equipment that was part of the COPS grant.
Item 37: Equipment-Telephone, ETSB Fund (Increase Expenditure by $242,700). This is to adjust the budget for public safety equipment.
Item 49: Copley Development, TIF #14 Lincoln/Westin Fund (Increase Expenditure by $1,390,000). This item adjusts the budget to provide resources for the redevelopment costs associated with the redevelopment agreement per Resolution No. R23-146.
Item 50: TIF Redistribution Payments, TIF #15 Fox Valley Mall Fund (Expenditure Increase of $1,145,500). This item is to adjust the budget to account for the TIF Surplus distribution based on the intergovernmental agreement per Resolution No. R20-028.
Item 52: Professional Fees/Audit, TIF #1 Fund (Increase Expenditure by $2,400). This item serves to provide resources for the audit fees.
Item 53: Professional Fees/Audit, TIF #3 Fund (Increase Expenditure by $2,400). This item serves to provide resources for the audit fees.
Item 54: Economic Development, TIF #4 Bell Gale Fund (Increase Expenditure by $3,800). 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.
Item 55: DAC Development, TIF #18 DAC Fund (Increase Expenditure by $6,241,300). This item provides for the payment of redevelopment costs for the DAC development project under Resolution No. R21-204.
Item 56: Grants/Economic Development, TIF #19 110 Cross Fund (Increase Expenditure by $100,000). This item provides for the final payment of redevelopment costs per Resolution No. R23-076.
Item 57: Economic Development Agreement, Business District Fund (Increase Expenditure by $94,800). This item adjusts the budget to account for the sales tax sharing agreement for the Pacifica Square development project.
Item 58: Machine/Equipment Other, Police, SHAPE Fund (Decrease Expenditure by $1,186,300). This item adjusts the budget for the body-worn camera expenditures which were paid out of the ARPA Fund in 2025.
Item 60: Machine/Equipment Other Police, ARPA Fund (Increase Expenditure by $1,331,600). This is to provide resources for the body-worn cameras. This was the final expenditure for ARPA and the Fund was closed in 2025.
Item 61: Fire Facility, Fire, 2023 General Obligation Bond Fund (Increase Expenditure by $3,063,000). This item provides resources for the construction of Fire Station # 13.
Item 62: Cost of Building, Central Services, 2023 General Obligation Bond Fund (Increase Expenditure by $392,000). This item provides resources for the access controls at the new public works building.
Item 63: Park Improvements, Parks and Recreation, 2023 General Obligation Bond Fund (Increase Expenditure by $484,000). This item provides resources for the RiverEdge Park construction project.
Items 92 through 96: Principal and Interest, Debt Service (Decrease Expenditures by $2,846,800). Adjust the 2025 budget for principal and interest for the 2025A, 2025B, and 2025C general obligation bond payments. At the time the 2025 budget was prepared, we did not have the final bond issue information.
Items 97 through 103: Insurance Claims, Property and Casualty Fund (Increase Expenditures by $3,430,000). These items adjust the budget for the cost of worker's compensation and general liability insurance claims that were higher than expected during 2025.
Items 104 and 105: Health Insurance Costs, Employee Health Insurance Fund (Increase Expenditures by $1,316,000). These items adjust the budget for employee health insurance costs that were higher than expected during 2025.
Item 106: Supplemental Final Pay, Employee Compensation & Benefits Fund (Increase Expenditure by $1,620,000). This item adjusts the budget for costs associated with the payment of severance and accrued sick leave that were higher than expected during 2025.
Item 107: Salaries-Pension-Regular, Fire Pension Fund (Increase Expenditure by $482,700). This item adjusts the budget for costs associated with the payment of pensions benefits that were higher than expected.
Item 108: Professional Services/Investment Services, Fire Pension Fund (Increase Expenditure by $98,300). This item adjusts the budget for costs associated with the payment for investment services.
Item 109: Retiree Health/HMO, Retiree Health Insurance Trust Fund (Increase Expenditure by $383,000). This item adjusts the budget for retiree health insurance costs that were higher than expected during 2025.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #8 to the 2025 City Budget.
cc: Finance Committee
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, 2025 and Ending December 31, 2025 (Amendment #8 For The 2025 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. O24-079 on December 3, 2024 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2025 and ending December 31, 2025; and
WHEREAS, the City Council approved Ordinance No. O25-027 on April 22, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #1 (Ward 8) for the 2025 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O25-038 June 10, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #2 for the 2025 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O25-047 on July 22, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #3 (Ward 6) for the 2025 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O25-071 on November 4, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #4 (Ward 2) for the 2025 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O25-079 on November 25, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #5 (Ward 6) for the 2025 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O25-080 on November 25, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #6 (Ward 1) for the 2025 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O25-081 on November 25, 2025 amending the annual budget for fiscal year beginning January 1, 2025 and ending December 31, 2025 (Amendment #7 (Ward 10) for the 2025 Fiscal Year), and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2025 fiscal year that were unanticipated at the time the annual budget for 2025 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, 2025 and ending December 31, 2025 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, 2025 and ending December 31, 2025 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.