S-1632 - 10/12/2021 - BUDGET - Ordinances Supporting Documents ITEM 9.13.1
BOARD OF TRUSTEES MEETING
VILLAGF OF SAMUEL E. DEAN BOARD ROOM
OAK B R92, K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
Of
October 12, 2021
SUBJECT: 2021 Budget Amendment
FROM: Jason Paprocki, Finance Director
J
BUDGET SOURCE/BUDGET IMPACT: Increasing numerous salary and benefit related
accounts for a total of$281,780 across the General Fund, Infrastructure Fund,Water Fund, Sports
Core Fund, and Garage Fund.
RECOMMENDED MOTION: I move the Village Board adopt Ordinance 2021-BU-AMEND-
-S-1632 "An Ordinance Authorizing an Amendments And Transfers Among Budget Line Items"
for the authorization of 2021 wage increases retroactive to January 1, 2021.
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 bean individual program or fund. Sub-classes within object classes havebeen 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:
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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 Contin ency 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's 2021 Budget was adopted with certain pay increases frozen for employees. The
Village Board had discussed revisiting 2021 pay increases should revenues reach a certain
threshold at midyear. At the June 22, 2021 Board of Trustees Meeting, the Board voted to
establish non-union merit increases effective July 1, 2021. Raises for union employees were
still being discussed at that time. The Board has since come to agreement with each respective
union and will vote to approve raises at tonight's meeting. This budget amendment establishes
cost of living raises for Police, Fire, and Public Works union members retroactive to January
1, 2021. Raises are calculated using:
• Police—2.75%
• Fire—2.75%
• Public Works—2.50%
In addition,this amendment includes retroactive merit increases for non-union employees from
January 1, 2021 to June 30, 2021. Retroactive merit pay for non-union employees is only
applicable for those employees with an evaluation date that fell between January 1, 2021 and
June 30, 2021. For the attached budget amendment, retroactive merit pay was assumed at the
maximum 3.50%,but the actual amount is calculated by the employee's evaluation score. Any
employee with an evaluation date after July 1, 2021 is not eligible for retroactive pay and
receives a merit increase up to 3.50%on their evaluation date occurring later in 2021.
The listing attached as Exhibit A reflects the total increases by Fund, Department, Program,
and Account.
Recommendation:
The Village Board adopt Ordinance 2021-BU-AMEND-S-1632 "An Ordinance Authorizing
an Amendments And Transfers Among Budget Line Items"for the authorization of 2021 wage
increases retroactive to January 1, 2021.
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