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TO: Mayor Richard C. Irvin, Mayor
FROM: Christopher A. Minick, Chief Financial Officer/City Treasurer
Stacey L. Peterson, Director of Financial Operations
DATE: June 27, 2022
SUBJECT:
An Ordinance Amending the Annual Budget for the Fiscal Year Beginning January 1, 2022 and Ending December 31, 2022 (Amendment #1 for the 2022 Fiscal Year)
PURPOSE:
To obtain the City Council’s approval of a proposed amendment to the 2022 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 2022 budget on December 7, 2021 through the passage of Ordinance No. O21-066.
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 Exhibit A, would provide for certain changes in the 2022 City Budget. This will not be the only budget amendment for 2022, with this amendment focusing on personnel changes, new programs, receipt of federal funds, and previously approved expense items that require a budget amendment. We anticipate a second amendment later this summer to account for capital projects, economic development, and other budget amendments once all data is available. 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 2: Transfer from General Fund to Capital Improvement Fund ($619,200). These items provide for the transfer of Franchise Fees to cover part of the cost for the Council Chambers and 5th floor renovation projects.
Item 3: Professional Fees/ Consulting, Information Technology, General Fund (Expenditure Increase of $480,000). This item provides for professional consulting in the amount of $15,000 to be use for the development and planning of an Information and Technology Commission, professional consulting in the amount $215,000 for mapping of surveillance cameras, and professional consulting in the amount of $250,000 for wireless network upgrade at RiverEdge Park.
Item 4: Supplies-Computers, Information Technology, General Fund (Expenditure Increase of $120,000). This item provides for the purchase of new and replacement computing devices for city staff.
Items 5: Professional Fees/ Consulting, Project Management Office, General Fund (Expenditure Increase of $96,000). This item provides additional project management services from Crowe to ensure quality delivery of medium to large scale complex projects.
Item 6: Professional Fees/Consulting, Cyber and Technology Risk, General Fund (Expenditure Increase of $736,600). This item provides for $671,600 for additional security consulting services and $65,000 for the mandatory PCI compliance audit.
Item 7: Other Special Programs/Grants, Community Services, General Fund (Expenditure Increase of $85,000. This item provides funding for the following activities: $15,000 for NAMI Kane Youth Mental Health Program, $30,000 YWCA Training and Leadership Opportunities, and $40,000 for Northern Illinois Food Bank Senior Food Box Program.
Item 8 through 12: Various items for the Thrive Center, General Fund (Expenditure Increase of $22,000). These items provide for the payment of current and additional costs of maintenance and repairs for the Thrive Center.
Item 13: Special Programs, Economic Development, General Fund (Expenditures Increase of $253,000). This item provides for the reinstatement of the unallocated funding from the Small Business Relief Fund.
Item 14: Salaries/Overtime, Fire Department, General Fund (Expenditure Increase of $600,00). This item provides for overtime costs that were greater than expected. The higher costs are generally attributable to having more firefighters on sick leave, military leave and retirements.
Item 15: Other Services & Charges/Billing Fees, Fire Department, General Fund (Expenditures Increases of $75,000). This item provides for the payment of the ambulance billing fee which is based on 5% of revenue.
Item 16 through 19: Two Zookeepers, Phillips Park Zoo, General Fund, (Expenditure Increases of $169,600. These items provide for the hiring of two additional zookeepers for Phillip Park Zoo. It has been determined that additional staff is needed to successfully meet daily workload requirements.
Item 20: Electrical, Motor Fuel Tax Fund (Expenditures Increases Totaling $594,700). This item provided for payment of equipment upgrades at various intersections throughout the city. Adequate fund balance is available in the fund to cover the costs.
Item 21: Property Standards, Sanitation Fund (Expenditure Increase of $136,000). This item serves to adjust the budget for slightly higher than expected costs associated with community refuse disposal services (i.e., recycling and other services supported by the environmental refuse disposal fee).
Item 22: Special Program/Grant Police Department, Gaming Tax Fund (Expenditure Increase of $16,000). This item provides for payment to the Pipes and Drums Aurora Police Department to assist with the replacement of musical instruments.
Item 23: Trees, Street Department, Gaming Tax Fund (Expenditure Increase of $50,000). This item provides additional funding for the free tree planting program.
Item 24 and 25: Expendable Tools and Supplies, Foreign Fire Insurance Tax Fund (Expenditure Increase of $20,000). This item provides for the payment of costs for firefighting-related supplies and tool that were greater than expected during the year. Adequate fund balance was available in the fund to cover the additional costs.
Item 26: Economic Development, TIF #1 Downtown Fund (Expenditure Increase of $726,100). This item provides for Finish Line Grant Program payments.
Item 27: Redevelopment Incentive, Economic Development, TIF #1 Downtown Fund (Expenditure Increase of $550,000). This item provides for payment made to Craft Urban per the redevelopment agreement resolution R20-077.
Item 28: Economic Development, TIF #3 Fund (Expenditure Increase of $75,000). This item provides for Finish Line Grant Program payments.
Item 29: Supplies, Ambulance-Medical, Fire Department, SHAPE Fund (Expenditure Increase of $78,400). This item provides for the purchase of ambulance equipment.
Item 30: Expendable Tools/Equipment, Equitable Sharing Justice Fund (Expenditure Increase of $50,500). This item provides for the payment of costs for expendable tools and equipment to support law enforcement activities that were not initially budgeted for the year.
Item 31: Building and Grounds, Central Services, ARPA Fund (Expenditure Increase of $291,600). This item provides for the renovation of the 5th floor and the 2nd council chambers.
Item 32: Building and Grounds, Central Services, Capital Improvement Fund (Expenditure Increase of $602,000). This item provides for the renovation of the 5th floor and the 2nd council chambers.
Item 33: Building and Grounds, 2022 GO Bond Fund (Expenditure Increase of $350,000). This item provides for repairs and maintenance of the Pinney deck. The original estimate for the deck replacement is outdated given the current increases in lumber costs.
Item 34: Professional Fees/ Consulting Services, Airport Fund (Expenditure Increase of $106,000). This item provides for payment of engineering services for various projects at the airport.
Item 35: Building and Grounds, MVPS Fund (Expenditure Increase of $46,500). This item provides for additional funds for repairs needed at the Stolp Island Parking deck.
Item 36: Supplies/Equipment/Mowers, Phillips Park Golf Fund (Expenditure Increase of $340,800). This item provides additional funding for the purchase of new equipment for the golf course. The 2022 budget originally was for leasing of equipment and it was determined the cost to purchase was the better option.
Item 37: Furniture/Fixtures, Phillips Park Golf Fund (Expenditure Increase of $46,000). This item provides payment for various aged kitchen equipment for the golf clubhouse. The cost of item has been affected by unforeseen inflation increases.
Item 38: Public Property Claims, Property and Casualty Insurance Fund (Expenditure Increase of $750,200). This item provides for costs associated with the DSC basement and first floor repairs due to the watermain break and flooding of the building.
If the proposed budget amendment is approved, budgeted expenditures in the 2022 budget will increase from $528,907,796 to $536,993,996.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council adopt the attached, proposed ordinance that would effect Amendment #1 to the 2022 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, 2022 and Ending December 31, 2022 (Amendment #1 For The 2022 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. O21-066 on December 7, 2021 adopting an annual budget for the City of Aurora for the fiscal year beginning January 1, 2022 and ending December 31, 2022; and
WHEREAS, the City of Aurora deems that it is necessary to incur certain expenditures during its 2022 fiscal year that were unanticipated at the time the annual budget for 2022 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, 2022 and ending December 31, 2022 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, 2022 and ending December 31, 2022 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.