S-1621 - 04/27/2021 - BUDGET - Ordinances Supporting Documents ITEM 6.C.2
BOARD OF TRUSTEES MEETING
V'L 1 AcI'E 01 SAMUEL E. DEAN BOARD ROOM
OAK B R , K BUTLER GOVERNMENT CENTER
�� 1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
Of
April 27, 2021
SUBJECT: 2021 Budget Amendment
FROM: Jason Paprocki, Finance Director
BUDGET SOURCE/BUDGET IMPACT: Amending the 2021 Budget for the Hotel Tax Fund
account 171-80200 "Transfer Out/In" for $3,806,250 and Infrastructure Fund account 41-48150
"Transfer From Other Funds" for$3,806,250.
RECOMMENDED MOTION: I move the Village Board adopt Ordinance 2021-BU-AMEND-
ND-S-1621 "An Ordinance Authorizing an Amendments And Transfers Among Budget Line
Items" for a transfer from the Hotel Tax Fund to the Infrastructure Fund for capital
improvements.
Backmund/Historv:
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:
BOT AGENDA Page 1
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.
At the January 26, 2021 Board of Trustees meeting, the Board approved Resolution 2021-
HTL/MTL-FUND-R-1926 authorizing the use of approximately $3,806,250 of
accumulated 2% portion Hotel Tax Fund dollars to fund the Windsor Drive widening
project. This ordinance updates the 2021 budget to reflect the transfer of funds between
the Hotel Tax Fund and Infrastructure Fund. Any individual transfers between funds will
occur as invoices are paid throughout the project, up to the authorized amount.
Recommendation:
I recommend the Village Board adopt Ordinance 2021-BU-AMEND-ND-S-1621 "An
Ordinance Authorizing an Amendments And Transfers Among Budget Line Items" for a
transfer from the Hotel Tax Fund to the Infrastructure Fund for capital improvements.
BOT AGENDA Page 2
I