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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, CFO/ City Treasurer
Stacey L. Hamling, Assistant Finance Director
DATE: May 24, 2019
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2019 and Ending December 31, 2019 (Amendment #1 for 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 Due to Timing - These are amendments that occur due to the timing of grants or the timing of capital projects.
Items 1 and 25: Grants/Other, General Fund (Offsetting Revenue and Expenditure Increase of $87,500). These items adjust the budget to account for a grant from the Secretary of State for the 2020 census outreach efforts.
Items 2 and 49 through 56: HOME Program (Offsetting Revenue and Expenditure Increases Totaling $1,570,900). These items adjust the budget for the actual annual HOME Program allocation to the city. At the time the 2019 budget was prepared we did not have final allocation information. The amounts included in the original 2019 budget reflected only an estimate of the allocation.
Items 3 and 57 through 58: Emergency Solutions Grant (ESG) Fund (Offsetting Revenue and Expenditure Increases Totaling $13,600). These are a new HUD entitlement program which was awarded for 2019.
Items 4 and 59: Neighborhood Redevelopment, Gaming Tax Fund (Offsetting Revenue and Expenditure Increase of $25,000). These items adjust the budget to account for a grant from the Kane County Riverboat Fund for technology for the city’s proposed Thrive Collaborative Center at 712 S. River Street.
Items 5 and 59: Neighborhood Redevelopment, Gaming Tax Fund (Offsetting Revenue and Expenditure Increase of $20,000). These items adjust the budget to account for a grant received from the Cities for Financial Empowerment Fund. This grant will be used to plan and develop an application for the establishment of a Financial Empowerment Center in the city.
Items 6 and 60 through 66: Block Grant Fund (Offsetting Revenue and Expenditure Increases Totaling $2,217,700). These items adjust the budget for the actual annual CDBG Program allocation to the city. At the time the 2019 budget was prepared we did not have final allocation information. The amounts included in the original 2019 budget reflected only an estimate of the allocation.
Items 9 and 70: Electrical Maintenance, Capital Improvement Fund (Offsetting Revenue and Expenditure Increase of $233,800). These items adjust the budget to account for the ComEd Energy Efficiency Program Grant. This grant is being used to replace existing street lights with new LED fixtures.
Amendments Impacting the Budget
Items 7 and 71: Transfer from the Golf Fund to TIF #9 Downtown Stolp Island Fund of $2,000,000). These items provide for a transfer from the Golf Fund to the TIF #9 Downtown Stolp Island Fund to facilitate a bridge loan for an economic development agreement. This item was previously discussed with the Finance Committee and is also included as a part of the Line of Credit agenda item also on the City Council May 28, 2019 agenda.
Items 8 and 72: Transfer from the Golf Fund to Capital Improvement Fund of $300,000. These items provide for a transfer from the Golf Fund to the Capital Improvement Fund to purchase additional police vehicles that were not included in the 2019 budget.
Items 10 through 13: City Clerk, General Fund (Expenditure Increase Totaling $1,550). These items adjust the budget for a position reclassification of an Administrative Aide to a Management Assistant. The Management Assistant position better aligns with the responsibilities of the division. The main function of this position manages all FOIA requests throughout the city.
Items 14 through 17: Human Resources, General Fund (Expenditure Increase Totaling $4,700). These items adjust the budget for a position upgrade of an HR Generalist to an Assistant Director of Human Resources. Upgrading the position will better distribute the workload and compensate the employee appropriately for the responsibilities taken on. New projects will require internal over-site and will fall within the purview of the position.
Items 18 through 21: Community Relations/Public Information (Expenditure Increase Totaling $66,600). These items adjust the budget to create one additional Digital Communications Coordinator. This position will be responsible for the messaging for the smart kiosks and digital signage board in Ward 1 and soon in Ward 9. Additional responsibilities will be to make sure the messaging is consistent with the city’s brandprint and standards.
Items 22 through 24: Special Events, General Fund (Expenditure Increase Totaling $20,400). These items adjust the budget to account for the part-time Special Events Assistant that was approved but was inadvertently omitted from the 2019 budget. Also with no budget effect, the full-time Special Events Assistant will be reclassified as a Special Events Coordinator.
Items 26 through 29: Information Technology, General Fund (Expenditure Increase Totaling $650). These items adjust the budget to upgrade an Administrative Aide to an Office Coordinator. This position supports the Senior IT Leadership Team with administrative support, manages all day-to-day administrative operations to guarantee divisional efficiency and effectiveness across two sites encompassing 30+IT staff.
Items 30 and 33: Information Technology, General Fund (Expenditure Increase of $27,000). These items are to provide for the benefit enrollment software consulting services. The new software (BenTeK) will be used by the Human Resources department at the next open enrollment which is held in the last quarter of the year. This purchase was recently approved by the City Council
Items 31 and 32: Information Technology, General Fund (Expenditure Increase of $21,000). These items provide for additional TRAKiT services. The CRM module in TRAKiT will speed inspection responsiveness for Property Standards and will provide more transparency of case activity.
Items 34 through 37: Development Services, General Fund (Expenditure Increase of $43,800). The Management Assistant was removed from the budget in 2018. Upon further review of the demands of the department, the position will be added back to the 2019 budget. This position will take on the responsibilities of business registration and TRAKit rollout management.
Items 38 through 41: Property Standards. General Fund (Expenditure Decrease of $42,400). These items adjust the budget to remove an unfilled position. This decrease in the budget is being reallocated to Development Services for the Management Assistant position.
Item 42: Fire, General Fund (Expenditure Increase of $48,600). This item is to provide for the purchase of a self-contained breathing air compressor and fill station. The item was approved for the 2018 budget; however, delivery was delayed and the item was received in 2019.
Items 43 through 47: Emergency Management, General Fund (Expenditure Increase of $22,850). These items adjust the budget to provide for the part-time Confidential Secretary to be upgraded to a full-time Emergency Management Assistant to meet the demands of the division.
Item 48: Street Maintenance, General Fund (Expenditure Increase of $265,000). This item will cover the costs of contractual snow removal that were higher than expected. The additional funding will cover future snow events in November and December of this year. There were 28 snow events this past winter, and we anticipate the same amount for the next winter season.
Items 68 and 69: Police Department, Capital Improvement Fund (Expenditure Increase of $300,000). These items provide for the replacement of 4 marked squad cars and 4 unmarked squad cars. The police vehicles are in need of replacement. (See item 8 for the revenue to cover the cost of the expenditures.)
Item 67: Economic Agreement-Keystone Building -- TIF #9 Downtown Stolp Island Fund (Expenditure Increase of $2,000,000). This item is to provide a bridge loan pursuant to a development agreement. The Keystone Building will be redeveloped to include apartments and retail space on the ground floor.
A future amendment will be needed in September to establish TIF # 10- Galena Broadway TIF, TIF #11- Benton River TIF, TIF #12- Ogden Ave /75th Street TIF, and TIF #13- Copley TIF.
IMPACT STATEMENT:
If the proposed budget amendment is approved, budgeted expenditures in the 2019 budget will increase from $431,295,678 to $441,111,178.
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #1 to the 2019 City Budget.
cc: Robert J. O’Connor, Alderman
Theodoros C. Mesiacos, Alderman
Edward Bugg, Alderman
Alex Alexandrou, Chief Management Officer
Richard Veenstra, Corporation Counsel
Wendy A. McCambridge, City Clerk
Adrienne Holloway, Chief Innovation Officer
Kenneth D. Schroth, Director of Public Works/City Engineer
John Curley, Chief Development Services Officer
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2019 and Ending December 31, 2019 (Amendment #1 for 2019 Fiscal Year).
body
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.