S-1442 - 10/13/2015 - BUDGET- SPORTS CORE - Ordinances Supporting Documents ITEM 1 O.A. 1)
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AGENDAITEM
Regular Board of Trustees Meeting
of
October 13,2015
SUBJECT: Budget Amendment
FROM: Sharon Dangles, AVM/Finance Director
BUDGET SOURCE/BUDGET IMPACT: General Corporate Fund, Account 271-80200,
$268,745 and Sports Core Fund, Account 844-80200, $100,000.
RECOMMENDED MOTION: I move that the Village Board approve Ordinance S-1442,
"An Ordinance Amending the 2415 Budget".
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.
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 contingent 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.
Please see attached memorandum to Village Manager, Rick Ginex recommending the reason for
the budget amendment.
Recommendation:
I recommend that the Village Board adopt Ordinance 2015-BU-S-1442, "An Ordinance
Amending the 2015 Budget".
ORDINANCE 2015-BU-AMEND-S-1442
AN ORDINANCE AUTHORIZING AN AMENDMENT
TO THE 2015 BUDGET
WHEREAS, the Village Manager has recommended an amendment to the 2015 Budget by
increasing the General Corporate Fund to transfer funds for capital improvements and other purchases at
the Sports Core and increasing the Sports Core Fund for purchases;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 General Corporate Fund budget is amended by increasing the amount in account
271-80200, "Transfer Out", by$268,745, which increase shall be funded by this Fund's fund balance.
Section 3: The Sports Core Fund budget is amended by increasing the amount in account 844-
80200, "Transfer Out", by $100,000 in the Golf Surcharge program, which increase shall be funded by
this Fund's fund balance.
Section 4: This ordinance shall be in full force and effect from and after its passage and approval
as required by law.
Section 5: 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.
APPROVED THIS 13th day of October, 2015.
Gopal G. Lalmalani
Village President
PASSED THIS 13th day of October, 2015.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
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VILLAGE OF OAK BROOK
Interoffice Memorandum
TO: Rick Ginex, Village Manager
FROM: Sharon Dangles, AVM/Finance Director
Trey VanDyke, Sports Core Director
DATE: October 5, 2015
SUBJECT: Sports Core 2015 Projections and Budget Transfer
Now that the season at the Sports Core is winding down and projections have been done along with the
2016 Budget process, we have prepared a financial analysis estimating a higher than expected loss
resulting in a cash flow issue.
The differential between the expected losses and projected losses is $399,872. This is attributed to the
following:
• Polo operations incurring a higher than expected loss of approximately an additional $100,000,
thus bringing the loss from $50,205 budgeted to $151,000 estimated.
• Uncollected grant revenue from the State in the amount of$187,800 for capital improvements.
• Poor weather this Spring, which effected greens fees, cart fees, driving range fees, and
membership sales at the outdoor pool and tennis courts.
• In June,the golf course flooded, which also had an impact on this year's loss.
Due to higher than expected losses this year at the Sports Core, we will need to transfer money from
the General Corporate Fund for an additional $268,745 and $100,000 from the Golf Surcharge
Investment account to cover the amount of the June flood. This will bring the total transfer from the
General Corporate Fund to the Sports Core Fund to $482,450 for 2015 compared to the budgeted
transfer of$213,705.
The attached financial analysis reflects a total estimated loss at the Sports Core for 2015 to be
$614,447 on a cash basis compared to a budgeted loss of$214,575. For 2015, the budgeted loss was
covered by a General Fund transfer for capital and operating expenses (including polo operations) for
$213,705 and the remaining $32,000 from the Infrastructure and Water Fund transfers for lease land
charges.
Village of Oak Brook
Sports Core Budget Analysis
FY2015
Revenue Expense Net Revenue Expense Net
2015 2015 Overhead Income 2015 2015 Overhead Income
Org Name Budget Budget Allocation (Loss) Org Name Projection Projection Allocation (Loss)
B&T Rec.Programs: B&T Rec.Programs:
811 Sports Core General Operations 9,200 280,200 (280,200) 9,200 811 Sports Core General Operations 580 237,320 (280,200) 43,460
812 Swimming Operations 294,290 311,570 114,850 (132,130) 812 Swimming Operations 167,575 328,850 114,850 (276,125)
813 Summer Tennis 160,720 118,540 57,415 (15,235) 813 Summer Tennis 109,065 121,430 57,415 (69,780)
815 Polo 222,220 264,960 7,465 (50,205) 815 Polo 133,825 276,927 7,465 (150,567)
816 Open Field 445,000 294,600 28,705 121,695 816 Open Field 445,010 262,220 28,705 154,085
Sub-Total 1,131,430 1,269,870 (71,765) (66,675) Sub-Total 856,055 1,226,747 (71,765) (298,927)
Food Operations: Food Operations:
821 B&T Clubhouse Food&Beverage 245,500 312,000 57,415 (123,915) 821 B&T Clubhouse Food&Beverage 147,000 315,705 57,415 (226,120)
822 Poolside Grill Food&Beverage 58,500 37,290 14,350 6,860 822 Poolside Grill Food&Beverage 49,625 46,025 14,350 (10,750)
823 Golf Food&Beverage 301,500 319,125 - (17,625) 823 Golf Food&Beverage 290,200 300,315 - (10,115)
Sub-Total 605,500 668,415 71,765 (134,680) Sub-Total 486,825 662,045 71,765 (246,985)
Golf Operations: Golf Operations:
831 Golf Club General Operations 1,282,815 910,005 - 372,810 831 Golf Club General Operations 1,128,300 828,235 - 300,065
832 Golf Learning&Practice 256,000 93,025 162,975 832 Golf Learning&Practice 224,350 88,980 135,370
833 Golf Cart Operations 346,000 93,030 252,970 833 Golf Cart Operations 304,600 92,215 212,385
834 Golf Course Maintenance - 801,975 (801,975) 834 Golf Course Maintenance 29,915 746,270 (716,355)
Sub-Total 1,884,815 1,898,035 (13,220) Sub-Total 1,687,165 1,755,700 (68,535)
Total Before Interfund Transfer and Depreciation 3,621,745 3,836,320 (214,575) Total Before Interfund Transfer and Depreciation 3,030,045 3,644,492 (614,447)
Transfer From General Fund 213,705 - 213,705 Transfer From General Fund 213,705 - 213,705
Transfer From Infrastructure 24,000 24,000 Transfer From Infrastructure 24,000 24,000
Transfer From Water Fund 8,000 8,000 Transfer From Water Fund 8,000 8,000
Sub-Total 245,705 - 245,705 Sub-Total 245,705 - 245,705
844 Golf Improv-Surcharge 121,500 150,000 (28,500) 844 Golf Improv-Surcharge 102,110 126,845 (24,735)
Total 3,988,950 3,986,320 2,630 Total 3,377,860 3,771,337 (393,477)