S-962 - 03/14/2000 - BUDGET - Ordinances Supporting Documentsilk o-
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VILLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS 60523 -2255
PHONE
Date: March 8, 2000 FA x
W E B S I T E
To: Village President and Board of Trustees
From: Darrell Langlois 91d`
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630 990 -3000
630 990 -0876
ww%% oak -brook ors,
Recommendation: That the Village President and Board of Trustees approve the
attached ordinance authorizing transfers among budget line
items for the year ended December 31, 1999
Now that all of the year -end accounting adjustments have been made, several budget
accounts, categories, and programs have been determined to have ended 1999 over
budget. The Village Board's policy on Finance, Taxation, and Budget outlines the
following procedures for budget administration and how these variances are to be
addressed:
1. That the Budget Officer, with the approval of the Village Manager, may
authorize transfers of budgeted fiends between accounts or between account
categories within a single budget program
2. That any transfer of budgeted funds from one budget program to another' shall
be subject to approval by the Board of Trustees upon the recommendation of tine
Village Manager.
3 That any transfer from contingencx shall be subject to approval by the Board
of Trustees upon the recommendation of the Village Manager.
4. That any increase in the total appropriation within any fund shall be subject to
approval by the Board of Trustees upon the recommendation of the Village
Manager.
In order to make as few changes to the budget as possible, formal budgetary control has
been established at the category level, i.e. personnel, materials and supplies, operation
and contractual, and capital. For example, if staff turnover created a need for ove IT, ime,
this may lead to the overtime account going over budget. However, this would be i offset
by regular salaries being under budget. By not doing budget transfers for these types of
situations we preserve the original budget as the basis for evaluating our actual
performance versus expected performance.
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Budget Transfers
March 8, 2000
Page 2
After the budget transfers were made administratively as authorized in item #1, some
individual programs remained over budget. The schedule attached to the ordi i ance
provides the necessary transfers between budget programs so that each category in � very
program is within budget. Please note that while some over - budget line items will
remain, each account category will be within budget.
Program Transfers
The :following is a brief explanation of the causes of the more material budget transfers:
Program 162- Emergency Management: This variance resulted from the costs associated
with food service and the purchase of communications equipment related to Y2K.
Program 621- Police Field Services: These variances resulted from the deferral of the
purchase several mobile data terminals from 1998 to 1999, the implementation of the new
union labor contract (salary increases for bargaining unit members were not budgeted),
and a delay in staffing the tactical unit in program 632 - Police Investigations, which
resulted in the allocation of more police officers to this program than were budgeted. The
amount of the payroll - related transfers was significantly mitigated by a positive variance
of approximately $100,000 resulting from pension contributions being under budget due
to the Police Pension Fund being overfunded.
Program 700 -Fire & EMS General Salaries: Most of this variance is attributed to salary
adjustments and retroactive payments made to union firefighters which were not
budgeted. The amount of this transfer is also mitigated by a positive variance of
approximately $127,000 resulting from pension contributions being under budget due to
the Firefighters' Pension Fund being overfunded
Program 351 -Water Operations: These variances are attributed primarily to a large
increase in the number of water main breaks, the purchase of more water from the
DuPage Water Commission than was budgeted (with a corresponding increase in water
sales revenue), and costs associated with providing emergency power to Well #6 in the
event of a Y2K power failure.
Programs 811, 812, 813, & 814 -Bath & Tennis Club: Most of these transfers are due to
increased activity at the facility in 1999 which resulted in the need for more part time and
seasonal staffing at the facility.
Budget Transfers
March 8, 2000
Page 3
Programs 821, 822, & 823 -Food & Beverage: These programs were all over budget due
to 'substantially increased activity over what was assumed in the 1999 budget. While the
Banquet program budget transfer is $196,055, revenues from Food & Beverage
operations were over budget by $180,591. This positive revenue variance offsets most of
the expenditure variances.
Fund Appropriation Amendments
At the fund level, total expenditures for the Self - Insurance Fund exceeded budget by
$2501595. This variance was the result of health and dental insurance claims being
significantly over budget, which was the primary factor in raising equivalent premiums
12.5% effective July 1, 1999. Since there are no other programs in this fund from �which
to transfer funds from, it is necessary to increase the total appropriations for this fund by
$250,595 This increase in appropriation will be funded with the equivalent premium
increases and the Fund's fund balance.
Please feel free to contact me if you should have any comments or questions.
by the construction of the Tollway The name "Old Harger Road" also
appears on the aerial Sidwells and within the old plat books The two
residences which front on that street (Lot 3 is vacant), have addresses
of 1 and 2 Yorkshire Woods. In reviewing this item, staff does not see
a reason to retain the "Old Harger Road" designation and it seems most
appropriate to revise it to "Yorkshire Woods ". This action would be in
keeping with Ordinance S -332 that renames all of the streets within the
Yorkshire Woods SLlbdivisioll to be "Yorkshire Woods ". Attorney
Martens has prepared Ordinance #2000- ST -NC -S -961, "An Ordinance
Renaming a Previously Nanled Street within the Village of Oak Brook
Du Page and Cook Counties, IL" which formalizes the name change.
Motion by Trustee Craig, seconded by Trustee Caleel, to approve
Ordinance 2000- ST -NC -S -961, "An Ordinance Renaming a Previously
Named Street within the Village of Oak Brook Du Page and Cook
Counties, IL" as presented and waive the full reading thereof. ROLL
CALL VOTE.
Ayes: 6 - Trustees Butler, Caleel, Craig, Kenny, McInerney and
Savino.
Nays: 0 - None.
Absent- 0 - None. Motion carried
03) ORDINANCE 2000 -BU -E\ 1 -S -962 AN ORDINANCE
AUTHORIZING TRANSFERS ANJONG BUDGET LINE ITEMS
Now that all Of the year -eml accoUllting adjUSt1llC1ltS have been made,
SC% cral bLidget acCOL1111S, CatC001'1CS, al1Cl prOgCaillS have been
determined to end 1999 O�Cl- budget The Village Board's policy on
Finance, Taxation, and Budget outlines the following procedures for
budget adi inistratloll amt flow these % arlaiiccs al c to be addressed
1 That the Budget Officer, %vith the approval of the Village Manager,
may authorize transfers of' budgeted funds between accounts or
between account categories within a snlgle budget program
2 That any transfer of budgeted funds front one budget program to
another shall be subject to approval by the Board of Trustees upon
the recommendation of the Village Nlanager
3 That any transfer f10111 c011t1n,;C11CV shall bC Subject to approval by
the Board of Trustees upon the ieconlnlcndation of the Village
Manager
VILLAGE OF OAK BROOK Minutes
'No
Page 5 of 13 March 14, 2000
ORD 2000 lit
I \ 1 -S -902
BUDGI I
4. That any increase in the total appropriation within any fund shall be
subject to approval by the Board of Trustees upon the
recommendation of the Village Manager.
In order to make as few changes to the budget as possible, formal
budgetary control has been established at the category level, i.e.
personnel, materials and supplies, operation and contractual, and
capital
After the budget transfers were made administratively as authorized in
item ""I, some individual programs remained over budget. The
schedule attached to the ordinance provides the necessary transfers
between budget programs so that each category in every program is
within budget. Please note that while sonic over - budget line items will
remain, each account category will be within budget
The following is a brief explanation of the causes of the more material
budget transfers:
Program 162-Emergency Managcnlent This variance resulted from the
costs associated with food service and the purchase Of conlnlurlications
equipment related to Y2K
Prograrll 621- Police Field Ser\ ices These variances I-CSUited from the
deferral of the purchase 01'se%e1a1 mobile d,lta ter-111111,11s front 1998 to
1999, the 11111)IC111Cilt , lt1011 01' the new union labor contract (salary
Increases for bar ".11111110 1,11111 111en1bcls \%crc not budgeted), and a delay
in staffing the tactical unit 111 1)10111,1111 632- Police Investigations, which
resulted in the allocation of more police officers to this program than
were budgeted The alllount of the payroll - related transfers was
slgnlficantly nliti�ated by a positr\c variance of approximately
S100,000 resulting front pension contributions belly under budget due
to the Police Pension Filnd being overfunded
Program 700 -Fire & ENIS General Salaries Most of this variance is
attributed to salary adJustnlents and retroactive payments made to union
firefighters which were not budgeted The amount Of this transfer is
also mitigated by a positive \ anancc of approximately S127,000
resultnlg from pcnslO11 COntllblltlons bC1n0 finder budget due to the
Firefighters' Pension Flllld be111� 0%C1 funded
Plogranl 351 -Water Ot)clatlons These variances are attributed
primarily to a lark lncicase In the nu111bcr of water main breaks, the
purchase of more water front the DuPagC Water Commission than was
budgeted (with a corresponding Increase 111 water- sales revenue), and
VILLAGE OF OAK BROOK Nllllutes Pagc 6 of' 13 March 14, 2000
JC2
costs associated with providing emergency power to Well #6 in the
event of a Y2K power failure
Programs 811, 812, 813, & 814 -Bath & Tennis Club: Most of these
transfers are due to increased activity at the facility in 1999 which
resulted in the need for more part time and seasonal staffing at the
facility.
Programs 821, 822, & 823 -Food & Bevera�,,e. These programs were all
over budget due to substantially increased activity over what was
assumed in the 1999 budget While the Banquet program budget
transfer is $196,055, revenues from Food & Beverage operations were
over budget by $180,591 This positive revenue variance offsets most
of the expenditure variances.
At the fund level, total expenditures for the Self- Insurance Fund
exceeded budget by $250,595. This variance was the result of health
and dental insurance claims being significantly over budget, which was
the primary factor in raising equivalent premiums 12 5% effective
July 1, 1999 Since there are no other programs in this fund from
which to transfer funds from, it is necessary to increase the total
appropriations for this fund by S250,595 This increase in
appropriation will be funded \\ Ith the CC11111/a1C11t prenllunl increases and
the Fund's fund balance
Motion by Trustee Caleel, seconded by Trustee Savino, to approve
Ordinance 2000 -BU -EX 1 -S -902 ".An Oidlnancc Authorizing Transfers
Alllong Budgct Line Items" 161 the year ended December 31, 1999.
ROLL CALL VOTE
Ayes 6 - Trustees Butler, Calecl, Craig, Kenny, McInerney and
Savino
Nays- 0 - None.
Absent- 0 - None Motion carried
B AWARD OF CONTRACTS
1) 2000 CRACK SEALING PROJECT
Scodeller C011StI-uCt1011 is al)pro \iniatcly , 9 3% lower than the
Engineer's Estimate Plospcctive bidders weie required to be IDOT
prequalified for this work Bic] packages were picked up by four
companies The contractor is responsible foi providing any necessary
traffic control to direct motorists around work zones Disruption is
minimal with this process The work is scheduled to be completed by
VILLAGE OF OAK BROOK M1111.1tes
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Page 7 of 13 March 14, 2000
2000 CRACK
SIAl IROJ