S-1309 - 04/26/2011 - FINANCE - OrdinancesORDINANCE 2011- FI- TX -BU -S -1309
AN AMENDMENT TO ORDINANCE S -1297
WHICH AMENDED CERTAIN FINANCE, TAXATION AND
BUDGET POLICIES OF THE VILLAGE PRESIDENT AND
BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK
WHEREAS, on January 24, 1995, the President and Board of Trustees adopted Ordinance S-
793, entitled, "An Ordinance Establishing Certain Finance, Taxation and Budget Policies of the Village
President and Board of Trustees of the Village of Oak Brook (Finance Policy Ordinance), as an advisory
statement concerning said policies and procedures; and
WHEREAS, on November 9, 2010, the President and Board of Trustees of the Village of Oak
Brook adopted Ordinance S -1297 entitled "A Comprehensive Amendment to Ordinance S -957 Which
Amended Certain Finance, Taxation and Budget Policies of the Village President and Board of Trustees
of the Village of Oak Brook" (Finance Policy Ordinance); and
WHEREAS, the President and Board of Trustees desire to amend certain policies and
procedures concerning finance, taxation and budget which are in the Finance Policy Ordinance and
include these changes in this Comprehensive Amendment to the Finance Policy Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS, as follows:
Section 1: The foregoing preambles are restated and incorporated herein by reference as though
fully set forth herein.
Section 2: The Village will conduct a continuing and comprehensive program of financial
planning in all funds, encompassing both operating and capital needs. The principal objective of this
program will be to identify and address potential financial problems in advance, thereby avoiding financial
difficulties before they arise.
Section 3: The Village financial plans and budgets shall be based on reasonable assumptions
which recognize the limitations on the revenues available to the Village and which adhere to sound
principles of municipal fund accounting and financial management.
Section 4: The budgeting and management of the Village shall be based on a system of goals
and objectives, developed by the Village staff under the leadership and direction of the Board and
integrated into the annual Municipal Budget.
Section 5: It is the policy of the Board that the Board should at all times encourage and solicit
public participation in the processes of setting goals and objectives, reviewing proposed long -range
financial plans, and reviewing proposed annual budgets. The annual schedule for obtaining such formal
public participation shall, insofar as possible, be as follows:
Section 6: The Village's Five -Year Financial Plan and annual Municipal Budget will be prepared
and presented on a cash basis and the Comprehensive Annual Financial Report will be prepared on an
accrual or modified accrual basis, as applicable and consistent with generally accepted accounting
principles as promulgated by the Governmental Accounting Standards Board. Further, it is the policy of
the Village Board that the Village strive annually to receive the Government Finance Officers Association
Certificate of Achievement for Excellence in Financial Reporting.
Ordinance 2011- FI -TX- BUS -1309
Amending S -1297 Finance Policy
Page 2
Section 7: It is the policy of the Board that the general operations of the Village continue to be
financed without the imposition of a general tax on real property.
Section 8: It is the policy of the Board that it will consider the imposition of a tax on real property
within the Village only to meet financial obligations of the Village which have been approved by the voters
at referendum.
Section 9: With respect to the imposition of a utility tax on natural gas and electricity, it is the
policy of the Board to impose the tax for periods not to exceed one year and, thereby, to obligate the
Board to consider the continuance of the tax at least annually.
Section 10: It is the policy of the Board that enterprise and utility funds shall be financially self -
supporting. Rates or other charges for services shall be established and maintained at levels which
produce revenues sufficient to defray expenditures within each fund, including reasonable
reimbursements to other funds for services or benefits received therefrom. Enterprise and utility funds
shall not receive transfers from other funds except in the form of loans made pursuant to Section 15
hereof, or as grants authorized by the Board.
Section 11: For the General Corporate Fund, it is the policy of the Board that every effort be
made to maintain the greater of:
a. an uncommitted cash balance equal to not less than six (6) months of budgeted
expenditures for the forthcoming fiscal year, exclusive of budgeted capital projects; or
b. an uncommitted cash balance equal to not less than six (6) months of projected
expenditures, exclusive of capital projects, based on the average of the first three (3)
years of the most recent Five Year Financial Plan adopted by the Village Board.
Section 12: Investment of idle funds will be guided by a comprehensive Investment Policy, the
principal objectives of which shall be to strive for full investment at the best possible return, consistent
with appropriate liquidity and security of capital.
Section 13: The Budget Officer, with the approval of the Village Manager, may authorize
transfers of budgeted funds between accounts or between account categories within a single budget
program.
Section 14: Any transfer of budgeted funds from one budget program to another, any increase in
the total appropriation within any fund, or any expenditure from any budgeted contingency amount shall
be subject to the approval of the Board upon recommendation of the Village Manager.
Section 15: Loans between funds made in order to transcend temporary operating shortfalls or
cash shortages and which can reasonably be expected to be repaid within the fiscal year in which the
loan is made, and in an aggregate amount not greater than $250,000, may be authorized by the Village
Manager upon recommendation of the Finance Director/Treasurer and after appropriate notice to the
Village Board. Loans between funds in an aggregate amount greater than $250,000, or in any amount if
the loan is not expected to be repaid during the fiscal year in which it is made, are subject to the specific
approval of the Village Board. All loans shall be documented in writing.
Section 16: Attached hereto and made a part hereof as Exhibit A is the Fund Balance and
Reserve Policy, 2010, which outlines technical changes of the standards for governmental accounting.
Section 17: The validity of any action otherwise taken by the Board in accordance with applicable
State law shall not be invalidated, impaired or otherwise affected by noncompliances with any part of the
procedures or policy set forth in this Ordinance.
Section 18: At the end of the fiscal year if there are extra dollars, the Village will reserve the
amount equal to the under budgeted amount for police and fire pension funds. The Finance Director will
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Amending S -1297 Finance Policy
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transfer these funds into a Pension Reserve cash account on December 31 of each year. The Village
Board can withdraw from this reserve balance in years when the actuary's estimated levy puts us over
budget or can use these funds for one time purchases such as capital projects, or they can add these
funds to the General Fund Reserve.
Section 19: This Ordinance supersedes Ordinance S -1297, passed on November 9, 2010, and
entitled "A Comprehensive Amendment to Ordinance S -957 Which Amended Certain Finance, Taxation
and Budget Policies of the Vilfage President and Board of Trustees of the Village of Oak Brook ".
Section 20: All ordinances or parts of ordinances in conflict with this ordinance are hereby
repealed to the extent of the conflict.
Section 21: This ordinance shall be in full force and effect from and after its passage, approval
and publication as required by law.
APPROVED THIS 26" day of April, 2011.
W. Craig
e President
PASSED THIS 26`" day of April, 2011.
Trustees Aktipis, Carson, Moy, Saiyed, Wolin and Zannis
None
ATTEST:
Charlotte K. Pruss
Village Clerk