S-1233 - 04/08/2008 - BUDGET - Ordinances Supporting Documentsco
\I,
I' EAM 10.11, 3 )
AGENDA ITEM
Regular Board of Trustees Meeting
of
April 8, 2008
SUBJECT: Transfers Among Budget Line Items
FROM: Darrell Langlois, Finance Director
BUDGET SOURCE/BUDGET IMPACT: Effects Numerous Budget Programs
RECOMMENDED MOTION: I move that the Village Board approve Ordinance S -1233,
"An Ordinance Authorizing Transfers Among Budget Line Items" for the year ended
December 31, 2007.
Background/History:
During the course of a year, there are numerous situations that may arise that cause an account,
program, or even a fund to exceed its budget. When this occurs, State statutes provide that the
corporate authorities may make transfers from "one corporate object or purpose to another
corporate object or purpose ". Additionally, statutes provide that the corporate authorities may
delegate authority to heads of municipal departments to "delete, add to, change, or create sub-
classes within object classes budgeted previously to the department with the approval of the
budget officer or executive officer of the municipality ". The Village has defined a corporate
object or purpose to be an individual program or fund. Sub - classes within object classes have
been defined as accounts and categories within a budget program.
Now that all of the year -end accounting adjustments have been made, several budget accounts,
categories, and programs have been determined to have ended 2007 over budget. The Village
Board's policy on Finance, Taxation, and Budget, prepared based on the previously mentioned
statutes, outlines the following procedures for budget administration and how these variances are
to be addressed:
Last saved by Default J \WORD\2007YEBUDTRF doc
Last printed 4/2/2008 2 28 PM 0
1. That 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.
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 the Village
Manager.
3. That any transfer from contingency 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 originally adopted 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
overtime, this may lead to the overtime account going over budget. However, this would likely
be offset by an underbudget salary account. 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.
Through Budget Year 2002, staff approved an extensive listing of budget transfers
administratively due to budget variances in account categories within a single budget program as
provided for under Procedure #1. In practice, these transfers were only reflected in the Village's
audit report-our accounting records were never adjusted for any budget transfers in order to
maintain proper original budget /actual comparison data. With the new reporting requirements
associated with GASB Statement #34, the Village is now required to publish original budget
amounts in addition to revised budget amounts in its audit report. This new requirement reduces
the value of these administrative transfers required under option# 1. After consultation with the
Village's auditors, in Budget Year 2003 and thereafter only program -to- program transfers and
additional fund appropriations are recorded. These transfers are required since this is the level of
legal control where budget compliance is measured.
In addition to the budget transfers required under the Village's Financial Policy ordinance,
during 2004 the Village Board began requiring budget transfers during the year when an
individual line item account exceeded budget by more than 10 %. This policy was revised in
October, 2006 by eliminating the 10% threshold and instead requiring line item transfers when
an account exceeds its budget by $2,500 in a material and supply, operation and contractual or
capital account (6000 to 9000 account series) or $10,000 in a personnel series account (5000
account series). Many of these transfers have already been approved by the Village Board and
have been posted to the accounting system; thus, these transfers are not reflected here.
Please note that all transfers are only for the amounts necessary to offset the individual program
budget variances, and in most cases the transfer is done only to the individual line item that has
the largest variance. In most cases it is several accounts that would cause a program to exceed
Last saved by Default J \WORD\2007YEBUDTRF doc
Last printed 4/2/2008 2 28 PM
its budget. Also, in some cases the variance in a particular line item may be greater than the
amount of the transfer, with offsets found in other line items within the budget program. After
these transfers are made, numerous line -items and categories will remain over budget; however,
each program in total will be within budget.
Program Transfers
The following is a brief explanation of the causes of program transfers that exceed $20,000:
Program 121 - Legal: Expenditures for line item account 121 -7631 Village Attorney were over
budget due to significant litigation and transition to a new Village Attorney. It should be noted
that the transfer amount of $95,000 that is requested is in addition to a transfer of $125,000 that
was previously approved by the Board. The line item for account 121 -7632 Village Prosecutor is
over budget primarily due to the change in prosecuting DUI offenses.
Program 181- Community Events: For budget purposes $25,000 was budgeted as a "net" amount
after donations for the General Fund contribution for Independence Day. On an accounting
basis, we are required to record the revenues and expenses separately. Thus, the expenditure
variance of $42,300 is offset by donation revenue of $43,000 in the General Fund.
Program 611- Police Service Management: The largest variance is account 611 -7630 Outside
Legal Services whereby $64,000 was spent on a budget amount of $10,000. The large variance
is due to legal, personnel, and disciplinary issues in the Police Department, which goes well
above the normal amount that was budgeted.
Program 621 - Police Field Services: Full -time salaries are over budget due a manpower
allocation decision for part of the year which resulted in the number of full time employees
exceeding the budgeted number in this program (this is more than offset by a reduction in
salaries in Program 632 - Police Investigations).
Program 363 -Snow Removal: The large number of snow events in 2007 resulted in account 363-
6180 Chemicals (primarily salt and calcium chloride) exceeding its budget by approximately
$25,000.
Program 351 -Water Operations: The large number of water main breaks (109 in 2007 vs. 63 in
2006) resulted in account 351 -5030 Overtime exceeding budget by $33,000.
Program 821 - Clubhouse F &B Operations: Account 821 -6320 Food Cost is over budget by
approximately $22,000. This variance is partially due to food sales revenue being over budget
(approximately $17,800 over), and the remainder is due to food cost as a percentage of sales
being slight over the budget percentage.
Program 823 -Golf Food & Beverage Operations: Of the $30,550 program variance, $16,400 was
payroll - related due primarily to an increase in operating hours. The variance in beverage cost is
partially offset by over budget revenue. The remaining variances are due to under budget
performance as a percentage of sales.
Last saved by Default J 1WORD\22007YEBUDTRF doc
Last printed 4/2/2008 2 28 PM
Fund Appropriation Amendments
Due to the escalating cost of gas and oil as well as several significant vehicle repairs, the total
budget for Program 341 - Garage Operations was exceeded. As this program is the only program
in Fund 62- Garage, there is no other program to transfer funds from in order to address the
budget variances and has caused the entire fund appropriation to be exceeded. Thus, in lieu of a
budget transfer, a fund appropriation amendment is required. The ordinance increases two line
item accounts by a total of $40,700 in order to comply with the Board's budget policies.
Please feel free to contact me if you should have any comments or questions.
Last saved by Default J \WORD\2007YEBUDTRF doc
Last printed 4/2/2008 2 28 PM
ORDINANCE 2008- BU -EX1 -S -1233
AN ORDINANCE AUTHORIZING TRANSFERS
AMONG BUDGET LINE ITEMS
WHEREAS, the Village Manager has recommended certain transfers among budget line items in
the Annual Budget Ordinance passed for the fiscal year beginning January 1, 2007 and ending December
31, 2007, and certain transfers of sums of money in said Budget Ordinance from one object or purpose to
another object or purpose, and
WHEREAS, the Village President and Board of Trustees concur with and approve of the Village
Manager's recommendations
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS that the following
transfers are hereby authorized
Section 1 The recitals above are hereby incorporated into and made a part of this ordinance
Section 2 In the attached schedule, attached as "Exhibit A", the amounts shown in the column
titled "Transferred From" represent unexpended balances The total of said amounts are hereby
transferred to the various items specified in the "Transferred To" column immediately opposite the items
specified in the "Transferred From" column
Section 3 The Garage Fund budget is amended by increasing the amount budgeted in account
341 -6030, "Gas and Oil ", by $15,700, and in account 341 -7160, "Maintenance Vehicles ", by $25,000, both
increases shall be funded by this Fund's fund balance
Section 4• This ordinance shall be in full force and effect from and after its passage and approval
as required by law
Section 5 All ordinances or parts thereof in conflict with the provisions of this ordinance be and
the same are hereby repealed to the extent of such conflict
APPROVED THIS 8th day of April, 2008
PASSED THIS 8th day of April, 2008
Ayes
Nays
Absent
John W Craig
Village President
ATTEST
Charlotte K Pruss
Village Clerk
i
t
X
W
c
O
E
Q
a�
Lam_
f
H O
L �
,- o
� U
U
cu Q
I-
L
a)
E
Z
O
O
O
U
U
0
LO
M
000000000000
000000000000
a)
O
U')
00
00
E!
O O LO LO N 0 O N O O m I-
r
O p
00
M
L O
O
cr
N
L
O U
U
N
V) Q
L
C
2
o
N
Lcu
r
a)
a
cn
U
>
0
L
a>
N
E
C-
E
U_ a) _
C U a) O "�
Q
Q
=3
Z
aU
a)
N — a) _ Z- p U_
U 5
—
a)
C
(n
V
L
O
le
�-
U
Q
O L O
N
p
V)
m
cn
y:r L "L--- �_ L L
C
N cu M
cu
O
0 U)
O �,
m
cu
O E
a) C
O
U
a) m a)
O 'D U
cu
"-1
cu
(A
�_ m
a)
c
r
r
O In
(0
a)
E
O
r O
Q
O r M 0 0 0 r r M i—
I� f` LO LO r— r-- O U") 0 LO ti ti
a)
O
LO
r (p
ti
m
r r N CV N N N r r r N r
(p
ca
r r
r
r r r r r r r M M CO r N
M
M
L
O
r
r r r r r r r r r r M�
U-
r
a�
Lam_
f
H O
L �
,- o
� U
U
cu Q
I-
L
a)
E
Z
O
O
O
U
U
0
LO
M
000000000000
000000000000
O
O
O
U')
00
00
N
O O LO LO N 0 O N O O m I-
r
(O
00
M
pl O N N M Vt 00 lq� Olq� Oi M
cr
N
d 00
N
U
L
C
2
o
N
a)
O E
a)
a
cn
U
cc N N U CD N
E0a)0 E °;o
a)
N
E
V) N
Z
N
U_ a) _
C U a) O "�
_E
f—
F-
aU
a)
N — a) _ Z- p U_
U 5
—
—
a)
o
(n
_
U) LU- N/A CU- Lo U
V�
U-
�
t� Cm
=
cu O a) C O U
ma) cn °'� E (n -=cn
cn
V)
C
E�
cn
y:r L "L--- �_ L L
L
L
0 U)
C
a r O 5- m cu �
cu
O
a) C
O
U
L O C6 a) 'L p' (Q a) O "-r
��t7(A24.�W(n 2 0
cu
to
cu
(A
0
F-0
O
O O r 0 0 0 0 r 0 0 0 0
r
r
O In
(0
r to O LO r N O r LO M 0
M O
O
O
r O
I�
O r M 0 0 0 r r M i—
I� f` LO LO r— r-- O U") 0 LO ti ti
O
LO
O
LO
r (p
ti
r
r r N CV N N N r r r N r
(p
r
r r
r
r r r r r r r M M CO r N
M
M
LO LO
r
r r r r r r r r r r M�
r
r
r r
O O 00
M 00 O U") 00
N 00 r (p 00
M to L O N a0
O) N r
O O
r O
CIO
o
a)
L
O �
r ti
LO O
N
1 1
M M
r r
CD
�
U
L
2
o
N
L
a)
a
U
O
a)
w
C U
Z
4~-
O
N
L V)
a)
a)
a)
U)
0 0
(n
cu
cu
O
Q
=
O
J
O O
CD
m
O
E
O
L
LL
r
(1)
.O
r
cu cu
r
—
L �-
L
-cu E
(
cu
t j
cu O
Q
r
�
r
(n U
L
0
U
L
r N
L
M
(MO (MO
QJ
�
ti ti
W
W
r
r
T-
r r
N N
r r
O O
r O
CIO
o
a)
L
O �
r ti
LO O
N
1 1
M M
r r
LO LO
r r
N
'O
V )
U
O
a)
06
Z
E
a)
a)
a)
a)
U)
C
E_ 3
(n
cu
cu
C
'O
O
0
c6
_ 2 ~ cQ
CD
c
c
E
O
L
L �-
cn
-cu E
(
cu
t j
cu O
O
r
�
r
(n U
O O
r O
CIO
o
co O
O �
r ti
LO O
N
1 1
M M
r r
LO LO
r r
0
L
X
W
f'-
C
L
4--.
N U
U
cua
L
H
L
a�
.n
E
I
z
C
O
O
U
U
0 LO
00000
C
r M
O O O O O
O
o0
Ul O� O O
O
t- M
(D M M (D 00
E
r r
�
Q
a)
a)
L
a)
~
cu
U
O
L
V)
C cn
L
O
m
a) m
L
O U
U
C
m C
C Q
LO
I i
I
cn
C
CY
L�
r
ca a)
O a) — m
L
H C
>
o
o
"p C
CL
E
C
CL
Q
z
yO�
L C
(D
cu
C L C6
(u
N
C
N
L
C
O
1`
O N 00
N N O LO
U
Q
O N
0
T-
oo
U') I` ti LA LO
N
Y O M
03 cu
N
O
O
m
N
4-- E
(D (D (D (D (D
(D
cu
U
m 'O U
+-•
p
O
-°—
O
v>
E
Q.
Q
a)
_0
a)
m
W
cu
C7
o
U
U)
L
O
E
LL
f'-
C
L
4--.
N U
U
cua
L
H
L
a�
.n
E
I
z
C
O
O
U
U
0 LO
00000
0
r M
O O O O O
O
o0
Ul O� O O
O
t- M
(D M M (D 00
(D
r r
�
N
a)
M
L
a)
cu CD
cu
U
cu
V)
C cn
O O
m
a) m
co
C
m C
LO N
LO
I i
I
cn
C
CY
ca a)
O a) — m
cu
H C
O C LL, 0
cn
"p C
m 1- 0 C
C
C
—
yO�
L C
(D
cu
C L C6
(u
ILU2U)2
2
(n
N N M
N N O LO
LO
O N
N I� N O r
T-
oo
U') I` ti LA LO
N
r r
r N N
i` N
r r r M M
N
N M
(D (D (D (D (D
(D
00 to 000 O
V-- 0 M 000 O
LO M ti to � O O
Lr) N M O M d (D
Nt LO N
a)
a�
O O
O
M
M 00
N
O
(D r
O
O
r r
O
M
a)
M
a)
a�
E
U
M
C
�
cu
a)
O
>
V)
O
M
a)
M
L
N
cu CD
cu
CD
cu
Z lL
(n
O O
O
LO M
co
T- r
O
LO N
LO
I i
I
M O
C
O O
O
M
M a0
N
O
(D r
O
r r
M
M
N
O
N
�
C
CY
a)
ca
c
O
C
(n
c
U
U
C
C
Q
U_
U
O
O
o
v>
E
C
F-
_0
a)
W
C7
o
U
U)
CD
E
E
a)
p
,�
-v
E
E
ti
E
(n
U_
LL
°'
O
c
E
E
LL
>, J
o a)
U-
ca
a
5
L
°'
O
O
U
_
0
CL cn o
_
0
(n
a)
_
°-
cn
a�
m
c
E
cn
a)
}?
U
m
a
E �
a
?
�
I
E
W
r
a�i
r
r
a`)
r
cu
r
M
�-
L
O
°r°
Q
co
w
o
0 0
cn
o
a)
z
ti
�-
ti
w
0
U
L
C
Cl O
O
In O O
r
O
O
O
O
M 0
M
O O M
O
r
M
O
U
O r
r
f- (D
O
O
N
f`
ti m
I-
V) ti ti
N
m
LO
ti
—
r r
00 Ln
r
N
r r r
r r r
r
N
M
M
M
N
r
M
++
0
T- r
M
(D (D (D
(D
(D
1-
h
H
.d
X
W
(V
O ~
L :3
cn U
U
N Q
L
L
(u
.n
C
Z
C
O
O
U
U
EO
•
CU
U
c
cu
L
U)
cuC
T
J
O
O
O
CO
M
•
•
•
0 0
00 00
LO
N M
CT
C
C6
O
U
cu
(V
A
(Cf
cu
LL.
LO
(D
CD
(D
M
O O
O O
N M
V)
(_
0
0
00
O
o
00
E
M
c"i
Q
L
M
CU
N
(o
O
od
LL
O
L-
L
O U
U
E
LL
V) Q
L
CU
O
cl
rr
U)
cu
�
0
I—
U OL
(Q
U
O
0
L
cc
a
E
(V
CL
Q
Z
C
Cu
�+
N
C
O
N
O
O
I�
O V)
L
�--
U
Q
OL N N
O
O
In �
.O
L
0
a
c6 (a M
cu
O
O i
O H a`)
m
O E
�
D
(U Cm O
cu
U-
0),o U
N
LL
(u O
cn
0NO
m
CU
C
�
T- O
O
I�
LO O
(D
N
Q
U
N
LL
LL
CT
U
(a
ON 0
O
ONO
'
ca
L
O
O
LL.
LL
(V
O ~
L :3
cn U
U
N Q
L
L
(u
.n
C
Z
C
O
O
U
U
EO
•
CU
U
c
cu
L
U)
cuC
T
J
O
O
O
CO
M
•
•
•
0 0
00 00
LO
N M
CT
C
C6
O
U
cu
(V
A
(Cf
cu
LL.
LO
(D
CD
(D
M
O O
O O
N M
°o
V)
00
0
0
00
0
o
00
(D
M
c"i
(D N
L
M
CO)
N
(o
od
CU
L-
(^a
E
LL
O
L
CU
O
cl
rr
U)
N
�
0
C
U OL
cu
U
O
cu
cc
L
a)
(V
75—
N
C
:3
06
E
cn
O
0
N
F—
0
U
O
C
U
0
(u
O i
O
.c
w
cn
�
D
0
= U
U-
co O
N
LL
0
cn
0NO
cA 14t
N
�
T- O
O
I�
LO O
(D
N
C
U
C
LL
LL
U)
U
E
ON 0
O
ONO
'
ca
'
O
LL.
O
cv
U
o 0
O
M
U
M
U
LO
y
LO
LL.
G
� (O
N
u
N
LL
co
co
F"
co
co co
�
co
y
�
L
c
u
T-
i
O
00
C
LL
t+
y
T-
L
O
=
M
M
H
°o
°0
00
0
0
00
0
o
00
(D
M
c"i
(D N
M
CO)
N
C
od
CU
L-
E
LL
O
L
CU
O
cl
y
N
�
0
C
U OL
U
O
cu
cc
L
C°-
O
N
C
:3
06
cn
O
0
U
O
C
U
U
O i
O
.c
D
0
= U
U-
co O
00
0
M
0NO
cA 14t
N
�
T- O
M
I�
LO O
(D
r—
r-
CV
LL
LL
00
M
ON 0
O
ONO
O O 00 00
O O 00 (D
M co O N
cn
r_
O
(n
V
m
O
od
L-
LL
O
L
U
O
cl
N
�
C
O
O
cu
cc
L
O
N
:3
cu E
O
U
O
C
�
U
cc
a
.c
0
N
co O
V
0NO
U LL
0NO
2
�
c
LL
LL
L
L
o
O
cv
U
o 0
O
M
N N
LO
y
LO
G
� (O
N
N
co
co
F"
co
co co
co
:c
X
W
c
O
O
F
ID
O ~
L =
U
U
c0 Q
L
z
L
E
Z
O
U
U
i
0
o
CD
O
O
H
O
O
O
L =
�°
L
O
0 0
L
O U
U
to
LO
c Q
N
O
O
N O
cc
O
M
I�
ll
r
L
0
Nt
N
CL
E
r
CL
Q
Z
p
�
c
0� U
c
O
ti
O 00
L
f-
U
Q
0
N
O
M M
cn w-
.0
N
Y O M
cu cu
cu
O
O
O
m
O
o a E
E
E
0) m CD
O 'D U
cu
O
cu m O
N
C
>
O
O
O
�
E
T"
�
Q
O
N
T-:
m
cu
N
00
r
r
H a
L
O
O
E
U-
ID
O ~
L =
U
U
c0 Q
L
z
L
E
Z
O
U
U
i
0
o
O
O
O
00
O
O
�°
000
0 0
O—
to
LO
O
N
O
O
N O
M
O
M
N
ll
r
CO
Nt
N
00
r
r
T- �
p
m
0� U
M
c
�
e-
M M
06
N
N
O
O
O
O
O
O
E
E
M
O
O
O
O
co
M CO LO 00 O) Q O M
O
N
O
O
N
T"
M
O
O
N
T-:
E
a
N
00
r
r
H a
r
O
E
E
E
a) a) L U >'
L L
—
O
N
—
—
•cu
O Q'
LL W
N (0 Q a) -v N 70 a)
y-+
c
,.r
CU
N
a O >
ca cv U M O N M�
t
O
O
N
V
U
cu
co
O
col
U
L
L
c6
C
LL
L
U)
U)
2
/c
U) U'
O
V
V
(1)
W
0
�°
000
0 0
0
o
O
O LO
rn
rn
LO (o
Nt
d•
M
T- �
m
0� U
00
00
e-
M M
06
00000000
O
O
O
O
O
O
O
O O O O O O O N
O
M
O
O
O
O
co
M CO LO 00 O) Q O M
O
N
O
O
r-
T"
M
I N N M Mlq N
M
N
T-:
T-
N
00
r
r
r
r
O
O
U'
a) a) L U >'
L L
C�
O
N
(1)
W
cc
O
(D
Q%
m
0� U
06
E CD
/a)
00
O O 2 U
a
N
76
E
cu
,�
n ° o om U LM
a °'
''-
U
U
°
c
O
U'
a) a) L U >'
L L
C�
O
F
N (0 Q a) -v N 70 a)
y-+
c
,.r
LL
N
a O >
ca cv U M O N M�
( j
O
LL
N
O
cu
co
cDU)U— aU— mU0
col
U
LL
L
O
O
V
V
N
U- Q
cv LL
0 0 0 0 0 LO 0 0
O
Q
O
W
U=
O
m —
c- M it CO N N M O
O
N
O
M
0 a,
O
O
0 LO U) (O CO (O (0 1'-
(D
~
Ri
(C)
cQ cC
M M M M M M M M
N N N N N N N N
M
O
O
M
O
m
00 00 00 00 00 00 00 00
00
F-
0
M