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TO: Mayor Richard C. Irvin
FROM: Stacey L. Hamling
Interim Chief Financial Officer/City Treasurer
DATE: June 6, 2017
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2016 and Ending December 31, 2016 (Amendment #2 for the 2016 Fiscal Year)
PURPOSE:
To obtain the City Council's approval of a proposed amendment to the 2016 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 2015 budget on December 9, 2014 through the passage of Ordinance No. O14-070.
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 2016 City Budget on April 12, 2016.
DISCUSSION:
The attached, proposed ordinance, including its Exhibit A, would provide for certain changes in the 2016 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 3: HOME Program (Offsetting Expenditures and Negative Expenditures of $984,800). These items constitute a technical correction of Budget Amendment #1 for 2016.
Items 2 and 4: General Fund and Capital Improvement Fund (Transfer from General Fund to Capital Improvement Fund of $3,000,000). These items constitute a reallocation of home rule state tax.
Items 5 and 16: Transfer from Property &Casualty Insurance Fund to Employee Health Insurance Fund of $1,476,000. These items provide resources to the Employee Health Insurance Fund to cover medical costs for current city employees and...
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