S-793 - 01/24/1995 - FINANCE - Ordinances ORDINANCE 95-FI-S-793
AN ORDINANCE ESTABLISHING CERTAIN FINANCE, TAXATION AND BUDGET
POLICIES OF THE VILLAGE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF OAK BROOK
WHEREAS, the Village President and Board of Trustees of the Village of
Oak Brook (the "Board" ) have heretofore adopted certain ordinances concerning
presentation and adoption of the annual Municipal Budget and imposition of
taxes within the Village; and
WHEREAS, the Board desires, consistent with said ordinances, to
establish certain other policies and procedures concerning finance, taxation
and budget and intends that this ordinance be an advisory statement concerning
said policies and procedures;
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as
follows:
Section 1: That the provisions of the preamble are hereby adopted as
though fully set forth herein.
Section 2: That the Village will conduct a continuing and comprehensive
program of financial planning in all funds, encompassing both operating and
capital needs. The principal objective of this program will be to identify
and address potential financial problems in advance, thereby avoiding
financial difficulties before they arise.
Section 3: That Village financial plans and budgets shall be based on
reasonable assumptions which recognize the limitations on the revenues
available to the Village and which adhere to sound principles of municipal
fund accounting and financial management.
Section 4: That the budgeting and management of the Village shall be
based on a system of goals and objectives, developed by the Village staff
under the leadership and direction of the Board and integrated into the annual
Municipal Budget.
Section 5: That it is the policy of the Board that the Board should at
all times encourage and solicit public participation in the processes of
setting goals and objectives, reviewing proposed long-range financial plans,
and reviewing proposed annual budgets. The annual schedule for obtaining such
formal public participation shall, insofar as possible, be as follows:
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and Budget Policies
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July of each year Village Board discussion of objectives for
the coming year.
September of each year Village Board review of the proposed Five-
Year Financial Plan.
November-December of Village Board review of the proposed
each year Municipal Budget and public hearing
thereon.
Section 6: That the Village's Five-Year Financial Plan and annual
Municipal Budget will be prepared and presented on a cash basis and that the
Comprehensive Annual Financial Report will be prepared on an accrual or
modified accrual basis, as applicable and consistent with generally accepted
accounting principles as promulgated by the Governmental Accounting Standards
Board. Further, it is the policy of the Village Board that the Village strive
annually to receive the Government Finance Officers Association Certificate of
Achievement for Excellence in Financial Reporting.
Section 7: That it is the policy of the Board that the general
operations of Village continue to be financed without the imposition of a
general tax on real property.
Section 8: That it is the policy of the Board that it will consider the
imposition of a tax on real property within the Village only to meet financial
obligations of the Village which have been approved by the voters at
referendum.
Section 9: That with respect to the imposition of a utility tax, it is
the policy of the Board to impose the tax for periods not to exceed one year
and, thereby, to obligate the Board to consider the continuance of the tax at
least annually.
Section 10: That it is the policy of the Board that enterprise and
utility funds shall be financially self-supporting. Rates or other charges
for services shall be established and maintained at levels which produce
revenues sufficient to defray expenditures within each fund, including
reasonable reimbursements to other funds for services or benefits received
therefrom. Enterprise and utility funds shall not receive transfers from
other funds except in the form of loans made pursuant to Section 15 hereof, or
as grants authorized by the Board.
Section 11: That for the General Corporate Fund, it is the policy of
the Board that every effort be made to maintain the greater of:
a) . an uncommitted cash balance equal to not less than four months of
budgeted expenditures for the forthcoming fiscal year, exclusive of budgeted
capital projects; or
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Establishing Finance, Taxation
and Budget Policies
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b) . an uncommitted cash balance equal to not less than four months of
projected expenditures, exclusive of capital projects, based on the average of
the first three years of the most recent Five Year Financial Plan adopted by
the Village Board.
Section 12: That investment of idle funds will be guided by a
comprehensive Investment Policy, the principal objectives of which shall be to
strive for full investment at the best possible return, consistent with
appropriate liquidity and security of capital.
Section 13: 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.
Section 14: That any transfer of budgeted funds from one budget program
to another, any increase in the total appropriation within any fund, or any
expenditure from any budgeted contingency amount shall be subject to the
approval of the Board upon recommendation of the Village Manager.
Section 15: That loans between funds made in order to transcend
temporary operating shortfalls or cash shortages and which can reasonably be
expected to be repaid within the fiscal year in which the loan is made, and in
an aggregate amount not greater than $250,000, may be authorized by the
Village Manager upon recommendation of the Finance Officer/Treasurer and after
appropriate notice to the Village Board. Loans between funds in an aggregate
amount greater than $250,000, or in any amount if the loan is not expected to
be repaid during the fiscal year in which it is made, are subject to the
specific approval of the Village Board. All loans shall be documented in
writing and repaid in principal and with interest based on the current rate of
return being earned by the Village from investment of its idle funds.
Section 16: That the validity of any action otherwise taken by the
Board in accordance with applicable State law shall not be invalidated,
impaired or otherwise affected by noncompliance with any part of the
procedures or policy set forth in this ordinance.
Section 17: That all ordinances or resolutions or parts of ordinances
and resolutions in conflict with this ordinance are hereby repealed.
Section 18: That this ordinance shall be in full force and effect from
and after passage and approval pursuant to law.
PASSED THIS 24th day of January, 1995.
Ordinance 95-FI-S-793
Establishing Finance, Taxation
and Budget Policies
Page 4
Ayes: Trustees Bartecki, Calzaretta, Kenny, McInerney, Payovich and Shumate
Nays: None
Absent: None
Abstain: None
APPROVED THIS 24th day of January, 1995.
Village President
ATTEST-
Village clerk
Approved as to Form:
Village Attorney
Published
Date Paper
Not Published XX