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TO: Mayor Richard C. Irvin, Mayor
FROM: Christopher A. Minick, Chief Financial Officer/City Treasurer
DATE: May 9, 2025
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2024 and Ending December 31, 2024 (Amendment #3 for the 2024 Fiscal Year)
PURPOSE:
To obtain the City Council’s approval of a proposed amendment to the 2024 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 2024 budget on December 5, 2023 through the passage of Ordinance No. O23-088.
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 2024 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 26: Grants/Other Grants, Police, General Fund (Offsetting Revenue increase of $1,188,900 and Expenditure Increase of $1,134,500). These items adjust the budget to account for the grant received through Bill Foster COPS grant.
Items 2 and 72: Transfer from Capital Improvements Fund to the Transformation Fund ($16,000,000).
Items 3 and 34 through 35: Emergency Solutions Grant Fund (Offsetting Revenues and Expenditures Increases totaling $26,700). These items adjust the budget for the COVID-19 CDBG funding allocation to the city.
Items 4 and 63: Interfund Transfer from TIF District #3 Fund to repay Gaming Tax Fund in the amount of $3,400,000. The Gaming Tax Fund in previous years front funded projects in the TIF District.
Items 5 and 40 through 45: Block Grant Fund (Offsetting Revenues and Expenditures Increases totaling $236,400). These items adjust the budget for the actual annual CDBG Program allocation to the city. At the time the 2024 budget was prepared, we did not have final allocation information. The amounts included in the original 2024 budget reflected only an estimate of the allocation.
Items 6 and 51 through 61: General Obligation Bonds, TIF District # 17 Farnsworth/Bitler Fund. (Revenue increase of $50,410,500 Issuance of the General Obligations bonds for the Casino Projects. Bond projects increase in revenue of $50,410,500 and expenditure increases by $419,050 for the bond issuance costs. Also, there is a decrease in the budget provisions for the line of credits.
Items 14 and 95: Debt Service Fund Increase in revenues of $5,404,500 which records the capitalized interest on the 2024A GO bondes and an increase in expenditures of $2,425,000 for increase payment made on the 2024A GO bonds.
Items 7 and 64: Economic Development, TIF # 4 Bell Gale Fund (Offsetting Revenue and Expenditure Increase of $5,700). 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.
Items 8 and 65 through 66: TIF District #7 Fund (Offsetting Revenue and Expenditures) Increase in revenue by $123,200 and an increase in Expenditures by $8,400 for the economic development agreement with Mitutoyo and $12,400 for the TIF redistribution. The amount received by the TIF exceeded the budget amount.
Items 9 and 67: Chicago Premium Outlets, TIF District # 8 Fund (Revenue increase of $62,900 and expenditures increase by $45,300). This provides for the payment of redevelopment costs for the Outlet Mall project. The developer qualified for reimbursement under Resolution No. R14-101. Adequate fund balance was available in the fund to cover the costs.
Items 10, 36, and 68: Transfer From Gaming Tax Fund to TIF #18 DAC Fund for the DAC development agreement (Offsetting Revenue and Expenditures by $3,000,000). Also an increase of $1,894,200 to provide for resources to pay obligations per the development agreement Resolution No. R21-204.
Item 11, 37, and 69: Transfer from Gaming Tax fund to TIF #19 for 110 Cross in the amount of $175,000. The transfer was necessary to provide resources to pay obligations per the development agreement Resolution No. R23-076.
Item 12 and 87 through 92: Elimination of Budgetary Provisions in 2024 GO Bond Project Fund. These items serve to eliminate the budgetary provisions in the 2024 GO Bond Project Fund. This fund was established to record the revenues and expenditures associated with the proceeds of bonds. The original budgetary provisions for the bonds are being reversed so as to enhance the clarity of the city's 2024 financial statements.
Item 13 and 21: Transfer from General Fund to Debt Service Fund ($2,100,000). These items provide resources for the payment of principal and interest.
Items 15 and 18: Transfer from General Fund to MVPS Fund ($500,000). These items provide resources for expenditures that were higher than expected in 2024.
Items 16 and 20: Transfer from General Fund to Property and Casualty Insurance Fund ($9,500,000). These items provide resources to the Property and Casualty Fund to cover the accrued costs associated with property and casualty insurance claims.
Item 17 and 19: Transfer from General fund to Employee Health Insurance Fund ($3,000,000.) These items provide resources to cover the health insurance costs that were higher than expected in 2025.
Item 22: Economic Development, General Fund expenditure increase of $680,820 for the Economic development Agreement with La Quinta De Los Reyes Resolution No. R 23-212.
Item 23: Economic Development, General Fund expenditure increase of $902,900 for the restaurants in the Hobbs Building per the economic development agreement Resolution No. R23-075.
Item 24: Fire Department, General Fund, Salaries/Overtime Sworn (Expenditure increase of $816,000). This item serves to adjust the budget for overtime costs that were greater than expected during the year.
Item 25: Police Department, General Fund, Salaries/Overtime Sworn (Expenditure increase of $560,600). This item serves to adjust the budget for overtime costs that were greater than expected during the year.
Items 27 through 29: Animal Control, General Fund, Part-time Salaries and Benefits (Expenditure Increase of $26,100). These items serve to adjust the budget for additional part-time seasonal workers to help in Animal Control.
Item 30: Other Special Programs, Transformation Fund. (Expenditure increase of $3,000,000) This item serves to adjust the budget to provide for $3,000,000 deposit with Invest Aurora per Resolution No. 24-352.
Items 31 through 33: Home Progam (Expenditure decrease of $371,000). This is to record the proper allocation of the program for fiscal year 2024.
Items 38: Travel and Professional Development, State Asset Forfeiture Fund (Expenditure increase of $15,500). To cover additional training for the Police Department. Adequate funding is available in the fund balance.
Item 39: Other Charges and Services, State Asset Forfeiture Fund (Expenditure increase of $14,100). This item provides resources for equipment used by the Police Department that was not originally budgeted. Fund balance is available to cover the expenditure.
Items 46 and 47: TIF District #10 Series 2022 B Principal and Interest (Expenditures of $96,800). Principal and interest payments were reclassed from the debt service fund to the TIF District Fund.
Items 49 and 50, 93 and 94: Series 2022B Principal and Interest TIF District # 17 Farnsworth/Bilter Fund (Increase $1,286, 200). The principal and interest of the Series 2022B Go Bonds was reclassed from Debt Service Fund to the TIF District # 17 Fund. The Debt Service Fund was decreased by $1,383,000
Items 48: Professional Fees/Audit, TIF District #15 Expenditure Increase of $2,300). This item serves to provide resources for the audit fees.
Item 62: Professional Fees/Audit, TIF District #1 Expenditure Increase of $2,300). This item serves to provide resources for the audit fees.
Item 70: Other Special programs/ACCA, ARPA Fund. (Expenditures of $5,720,320). $4,500,000 was for financial assistance to subsidize the Aurora Civic Center Authority operations for 2024(R24-010). The remaining $1,220,320 was a reimbursement to ACCA for the Riverwalk promenade (R24-308).
Item 71: Capital Equipment, ARPA Fund. (Expenditures increase of $1,357,511). The body worn cameras were reclassified from the SHAPE fund to the ARPA fund for 2024.
Items 73 through 80: Elimination of the Budgetary Provisions in 2022 GO Bond Fund. The 2022 GO Bond fund was closed and the budgeted items were allocated to the 2023 GO Bond Fund.
Items 81 through 86: 2023 General Obligation Bond Fund (Expenditures increase of $26,434,700). These items were originally budgeted in the 2022 GO Bond. $3,203,900 fire department, $51,100 downtown services, $58,000 streets road projects, $34,000 central services furniture, $19,865,300 cost associated with the combined public works facility, and $3,222,400 park improvements.
Items 96 through 102: Insurance Claims (Expenditure Increases Totaling $8,386,747 in the Property & Casualty Insurance Fund). These items adjust the budget for the cost of worker's compensation and general liability insurance claims that were higher than expected during 2024.
Items 103 through 106: Health Insurance Costs (Expenditures Increases Totaling $4,413,976 in the Employee Health Insurance Fund). These items adjust the budget for employee health insurance costs that were higher than expected during 2024.
Item 107: Final Pay (Expenditures Increase of $1,130,000 in the Employee Compensated Benefits Fund). This item adjusts the budget for costs associated with the payment of severance and accrued sick leave that were higher than expected during 2024.
Items 108 and 109: Health Insurance Costs (Expenditures Increases Totaling $1,508,400 in the Retiree Health Insurance Trust Fund). These items adjust the budget for retiree health insurance costs that were higher than expected during 2024.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #3 to the 2024 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, 2024 and Ending December 31, 2024 (Amendment #3 For The 2024 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. O23-088 on December 5, 2023 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2024 and ending December 31, 2024; and
WHEREAS, the City Council approved Ordinance No. O24-021 on March 12, 2024 amending the annual budget for fiscal year beginning January 1, 2024 and ending December 31, 2024 (Amendment #1 for the 2024 Fiscal Year), and
WHEREAS, the City Council approved Ordinance No. O24-044 on August 13, 2024 amending the annual budget for fiscal year beginning January 1, 2024 and ending December 31, 2024 (Amendment #2 for the 2024 Fiscal Year), and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2024 fiscal year that were unanticipated at the time the annual budget for 2024 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, 2024 and ending December 31, 2024 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, 2024 and ending December 31, 2024 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.