S-1525 - 03/13/2018 - BUDGET - Ordinances Supporting DocumentsBOT AGENDA Page 1
BOARD OF TRUSTEES MEETING
SAMUEL E. DEAN BOARD ROOM
BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
Of
March 13, 2018
SUBJECT: 2018 Budget Amendment
FROM: Jason Paprocki, Finance Director
BUDGET SOURCE/BUDGET IMPACT: Amending the 2018 Budget for the Equipment
Replacement Fund account 342-90200 by $21,000.
RECOMMENDED MOTION: I move that the Village Board adopt Ordinance 2018-BU-
AMEND-S-1525 "An Ordinance Authorizing an Amendment to the 2018 Budget” to finish
outfitting a Fire Department vehicle.
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.
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:
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.
Item 6.D.3
BOT AGENDA Page 2
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.
At the February 13, 2018 Village Board meeting, the Board approved the purchase of Fire
Department vehicle C-94. The total cost of this vehicle is estimated at $66,000 ($38,572
for the vehicle and $27,428 for equipment to outfit). The 2018 Budget includes $45,000
in the Equipment Replacement Fund (account 342-90200) for the estimated replacement
cost of the Fire Chief’s vehicle. The costs to outfit the vehicle were more than originally
estimated during the 2018 budget process. A budget amendment of $21,000 is necessary
to cover the full replacement cost.
The additional $21,000 needed will be funded from Equipment Replacement Fund cash
reserve balance. As of February 28, 2018, the Equipment Replacement Fund had
approximately $1.8 million in cash and investments on hand.
Recommendation:
I recommend that the Village Board adopt Ordinance 2018-BU-AMEND-S-1525 "An
Ordinance Authorizing an Amendment to the 2018 Budget” to finish outfitting a Fire
Department vehicle.
ORDINANCE 2018-BU-AMEND-S-1525
AN ORDINANCE AUTHORIZING AN AMENDMENT
TO THE 2018 BUDGET
WHEREAS, the Village Manager has recommended an amendment to the 2018 Budget by
increasing the Equipment Replacement Fund for vehicle replacement and outfitting; 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
amendment is hereby authorized:
Section 1: The recitals above are hereby incorporated into and made a part of this ordinance.
Section 2: The 2018 Equipment Replacement Fund budget is amended by increasing the amount
in account 342-90200 by $21,000.00, to be funded from the 2018 Equipment Replacement fund reserve
balance, for the replacement and outfitting of a fire department vehicle.
Section 3: This ordinance shall be in full force and effect from and after its passage and approval
as required by law.
Section 4: 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.
[SIGNATURE PAGE FOLLOWS]
Ordinance 2018-BU-AMEND-S-1525
Authorizing An Amendment To
The 2018 Budget Page 2 of 2
APPROVED THIS 13th day of March, 2018.
Gopal G. Lalmalani
Village President
PASSED THIS 13th day of March, 2018.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk