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S-1926 - 06/07/2021 - FINANCE - Ordinances ITEM 5.13.1 BOARD OF TRUSTEES MEETING VILLAGE OF SAMUEL E. DEAN BOARD ROOM OAK B R K BUTLER GOVERNMENT CENTER �� , 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Special Board of Trustees Meeting of June 7, 2021 SUBJECT: 2021 Budget Amendment FROM: Jason Paprocki, Finance Director BUDGET SOURCE/BUDGET IMPACT: Reducing the 2021 Budget for the General Fund accounts 700-50000"Salaries Full-Time"for$45,885,700-50300"Salaries-Overtime"for$7,280, 700-51400 "FICA" for$1,255, and 700-51500 "Health Insurance" for$10,440. RECOMMENDED MOTION: I move the Village Board adopt Ordinance 2021-BU-AMEND- ND-S-1926 "An Ordinance Authorizing an Amendments And Transfers Among Budget Line Items" for the deauthorization of the vacant Fire Department Battalion Chief position. 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: BOT AGENDA Page 1 9X_ 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. The Village Board has directed staff to review options for vacated positions. A vacancy has arisen in the Fire Department due to the retirement of a Battalion Chief. The Village Board has reviewed the options and has expressed interest in de-authorizing the third Battalion Chief position from the 2021 Budget. The ordinance presented removes the remaining salary and benefits budget related to the vacant Battalion Chief position. As a result, the amended 2021 Budget decreases the Battalion Chief positions from three to two. Since pension contributions are calculated based on the active and retiree data as of January 1, 2021,no changes have been made at this time to budgeted pension contributions. The following accounts are being reduced as a result of this change: Account Amount 700-50000 (Salaries Full-Time) $45,885 700-50300 (Salaries-Overtime) 7,280 700-51400 (FICA) 1,255 700-51500 (Health Insurance) 10,440 Total $64,860 Recommendation: The Village Board adopt Ordinance 2021-BU-AMEND-ND-S-1926 "An Ordinance Authorizing an Amendments And Transfers Among Budget Line Items" for the deauthorization of the vacant Fire Department Battalion Chief position. BOT AGENDA Page 2 THE VILLAGE OF OAK BROOK COOK AND DUPAGE COUNTIES, ILLINOIS ORDINANCE 2021-BU-AMEND-ND-S-1926 AN ORDINANCE AUTHORIZING AMENDMENTS AND TRANSFERS AMONG BUDGET LINE ITEMS THE VILLAGE OF OAK BROOK, ILLINOIS GOPAL G. LALMALANI, Village President CHARLOTTE K. PRUSS, Village Clerk LAURENCE HERMAN MICHAEL MANZO JAMES NAGLE A. SURESH REDDY EDWARD TIESENGA ASIF YUSUF Village Board Published in pamphlet form by authority of the President and the Board of Trustees of the Village of Oak Brook on this the 7ch day of June, 2021 Ordinance 2021-BU-AMEND-ND-S-1926 An Ordinance Authorizing Amendments and Transfers Among Budget Line Items Page 2 of 3 ORDINANCE 2021-BU-AMEND-ND-S-1926 AN ORDINANCE AUTHORIZING AMENDMENTS AND TRANSFERS AMONG BUDGET LINE ITEMS WHEREAS,the Village Board directed Village staff to carefully review whether vacated positions should be filled or whether those positions should be eliminated by attrition;and WHEREAS,a vacancy has arisen in the Fire Department in the position of Battalion Chief as a result of an employee's voluntary retirement;and WHEREAS,the Village President and Board of Trustees have reviewed the options and elect to de-authorize the third Battalion Chief position in the Village's 2021 Budget. 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 General Fund budget is amended by decreasing the amounts in the following account: 1. Account 700-50000(Salaries Full-Time),by$45,885. 2. Account 700-50300(Salaries-Overtime)by$7,280. 3. Account 700-51400(FICA)by$1,255. 4. Account 700-51500(Health Insurance)by$10,440. 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 2021-BU-AMEND-ND-S-1926 An Ordinance Authorizing Amendments and Transfers Among Budget Line Items Page 3 of 3 APPROVED THIS 7th day of June, 2021. Gopal G. Lalmalani Village President PASSED THIS 7th day of June, 2021. Ayes: Trustees Herman, Manzo, Nagle, Reddy, Tiesenga, Yusuf Nays: None Absent: None ATTEST: OF 04 A- 49 17 Charlotte K. Pruss G Village Clerk CQ U 1.411