S-1273 - 01/26/2010 - BUDGET - Ordinances Supporting DocumentsJ
I' EAH 6.F.11)
AGENDA ITEM
Regular Board of Trustees of
January 26, 2010
SUBJECT: Interfund Loan to the Sports Core Fund
FROM: Sharon Dangles
Acting Finance Director
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2010 -
BU -S -1273, an Ordinance Authorizing a Loan to the Sports Core Fund.
Background/History:
The ordinance authorizing loans from the General Corporate Fund to the Sports Core Fund will
expire on January 31, 2010. The prior ordinance authorized a consolidated loan of up to
$1,290,000 in order to fund capital and operating needs of the Sports Core dating from 1996-
2003. None of the principal on the $1,290,000 obligation was repaid during 2009 and in addition,
the 2009 budget did not project repaying any of the principal in 2009. At the present time the
only action requested is to extend the term of the loan for an additional one -year period.
In addition, an interfund loan of $205,000
operations in 2009 due to the *decline in the
payouts relating to the reduction in work force.
expected to be repaid by the end of the year.
vas required in order to finance Sports Core
economy, bad weather, severance and , benefit
Based on 2010 budget projections this amount is
Recommendation:
I recommend approval of the attached ordinance which extends the loan authorization to the
Sports Core Fund for an additional one -year term.
C�M
SUBJECT: Sports Core Loan
ITEM 6"A
AGENDA ITEM
Regular Board of Trustees Meeting
of
January 26, 2010
FROM: Sharon Dangles
Acting Finance Director
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board authorize loans of up to
$250,000 from the General Corporate Fund to the Sports Core Fund for working cash purposes
in 2010..
Background/History:
At the Board meeting on December 8th, it was approved that the General Fund loan up to
$250,000 to the Sports Core Fund. As of December 31, 2009 the General Fund loaned Sports
Core $205,000 for operating cash purposes. The 2009 cash decline was due to not meeting
overall revenue projections in relation to the economy and the weather conditions which affected
golf revenues early in the year. Also affecting the 2009 cash balance was the severance and final
benefit payouts to employees with the reduction in workforce that occurred.
Due to the nature of the operations at the Sports Core, expenses will continue to be incurred in
January, February and March prior to the receipt of the major seasonal revenue sources (golf
revenues and B &T memberships).
In the first quarter of 2009, a loan of $250,000 was authorized due to the nature of the operations
at the Sports Core that result in most seasonal revenues not beginning to be received until late
March with the opening of the golf club. This loan was fully repaid in August, 2009.
For 2010, the Sports Core will owe the General Fund $205,000 due from the 2009 loan and an
additional $250,000 to cover the operating needs of the Sports Core operations for January,
February and March. The total amount that would be due back to the General Fund is $455,000
in which, the repayment of this loan is dependent upon meeting or exceeding its projections for
the year.
Recommendation
Pursuant to the Village Board policy on Finance, Taxation and Budget, loans of this nature may
be approved by the Village Manager in an amount not greater than $250,000 with appropriate
notice to the Village Board. I am requesting that the Village Board authorize loans of up to
$250,000 from the General Corporate Fund to the Sports Core Fund for working cash purposes
in 2010. These loans will be repaid as soon as the aforementioned revenues are received which
will most likely happen in late March, 2010. Funds will be loaned only as needed, and the
outstanding balance will appear as a separately stated item on the monthly operating statements
distributed to the Village Board.
ORDINANCE 2010 -BU -S -1273
AN ORDINANCE AUTHORIZING A LOAN
TO THE SPORTS CORE FUND
WHEREAS, Ordinance 2009 -BU -S -1253 authorized a consolidated loan of not more than
$1,290,000 from the General Corporate Fund to the Sports Core Fund in order to fund capital projects and
operating needs of the Sports Core, and
WHEREAS, the loan amount authorized remains outstanding requiring a one year extension to
January 31, 2011
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 That the preamble hereinabove set forth is hereby adopted as though fully set forth
herein
Section 2 That a consolidated loan of not more than $1,290,000 from the General Corporate
Fund to the Sports Core Fund is hereby authorized in order to fund capital projects and operating needs of
the Sports Core
Section 3* That the loan authorized in Section 2 hereof shall be treated as revolving loans The
Finance Director is hereby authorized to draw on the principal amounts on an as- needed basis and to
repay the outstanding balances as funds are made available
Section 4 That any unpaid balance on these loans will be due and payable on January 31, 2011
Section 5 That all ordinances or resolutions, or parts thereof, in conflict with the provisions of this
ordinance be and are hereby repealed
Section 6, That this ordinance shall be in full force and effect from and after passage and
approval pursuant to law
APPROVED THIS 26th of January, 2010
PASSED THIS 26th day of January, 2010
Ayes
Nays
Absent
John W Craig
Village President
Ordinance 2010 -BU -S -1273
Authorizing a Loan to the
Sports Core Fund, Page 2 of 2
ATTEST
Charlotte K Pruss
Village Clerk