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S-1324 - 12/13/2011 - BUDGET - Ordinances Supporting DocumentsAGENDA ITEM Regular Board of Trustees Meeting of December 13, 2011 SUBJECT: 2012 Municipal Budget FROM: Sharon Dangles Finance Director BUDGET SOURCE/BUDGET IMPACT: Ordinance Adopting the 2012 Budget PrEM 11.0.1 Jr, RECOMMENDED MOTION: I move that the Village Board adopt Ordinance 2011 - BU -EX6 -S -1324, an Ordinance Adopting the Budget of the Village of Oak Brook for 2012. Background/History: On November 21" and 22nd, the Village Board met to discuss the proposed 2012 Budget and 2012 -2016 Five -Year Financial Plan. The revised 2012 Budget as presented takes into account all of the Board directed changes as well as staff recommended changes. Major changes are outlined below: Attachment A - In total, the proposed 2012 budget for the General Corporate Fund revenues of $19,846,095 has been reduced by $35,340, which results in revised 2012 proposed revenues of $19,810,755. The General Fund expenditures of $19,844,955 have been reduced by $38,200, resulting in revised expenditures of $19,806,755. The projected ending cash balance is $10,291,247 which is $62,140 less than projected in the initial 2012 Draft Budget. The ending cash balance is $1,108,207 above the six month operating reserve requirement of $9,183,040, or 6.73 months. The pension contributions for Police and Fire were increased in the 2012 Budget by $228,160 due to utilizing the "new statutory minimum" (i.e., Projected Unit Credit and 90% amortization) which results in increasing contribution percentages. Under the prior approach (i.e., Entry Age and 100% amortization), mathematically the contribution rate was theoretically constant. Under the new approach the theoretical increases for Police and Fire are about 0.6% and 1.0 %, per year, respectively. With respect to investment losses, it is a little more complicated due to the new statutory minimum has a "built in smoothing" feature. However, the smoothing impact is only temporary a °v�, (the deferred losses are recognized eventually, and that the contribution rate would increase another 3.0 %. In order to factor in the increased pension contributions, the funding for the equipment replacement charges were decreased by $99,660. Other changes as outlined in the power point presentation was also made to the budget to offset this increase. Attachment B - The HoteUMotel Fund decreases the expenditures by $85,000 for signage and $85,000 for marketing. The $10,000 DCVB grant was eliminated and $10,000 was added for Hotel Business incentives. Attachment C - The Infrastructure Fund 2012 revised budget will include $375,000 in transfers from the Hotel Fund to pay for streetscape expenditures. These expenditures will be recorded in the Hotel Fund. In addition, the paving program costs were reduced by $125,000 based on the engineer's estimate. Attachment D - The Water Fund expenditures reflects an increase of $223,300 due to the water increase that will be passed on from DuPage Water Commission. Attachment E — The Sports Core Fund revenues reflects an increase in golf cart fees by $15,000 and a decrease in expenditures of $6,000 for pool painting. Attachment F — The Equipment Replacement Fund revenues reflects a decrease of $99,660 due to a reduction in the General Fund contribution amount. Attachment G — This reflects a summary of all funds estimated 2012 revenues and expenditures. Budget Ordinance S -1324 is attached for your review. Attached to the final ordinance are revenue and expenditure summaries for each fund. Recommendation: It is recommended that the Village Board adopt Ordinance 2012- BU -EX6 -S -1324, an Ordinance Adopting the Budget of the Village of Oak Brook for 2012. ORDINANCE 2011- BU -EX6 -S -1324 AN ORDINANCE ADOPTING THE BUDGET OF THE VILLAGE OF OAK BROOK FOR 2012 BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Findings: The President and Board of Trustees find that the tentative annual budget of the Village of Oak Brook for 2012 has been conveniently available to public inspection for at least ten (10) days prior to its passage in pamphlet form as prescribed by the corporate authorities. A public hearing has been held prior to final action on the budget, notice of which hearing was given by publication in a newspaper having general circulation in the Village of Oak Brook, said notice having been published at least one week prior to the time of hearing. The hearing on the budget was held not less than one week after the tentative annual budget was published, by placing it on file with the Village Clerk for public inspection. Section 1 The sums set forth for the purposes indicated in the 2012 Municipal Budget of the Village of Oak Brook attached hereto and made a part hereof are hereby budgeted to pay all necessary expenses and liabilities of the Village of Oak Brook for the fiscal period beginning January 1, 2012 and ending December 31, 2012. Section 3: The Village of Oak Brook hereby approves and adopts the 2012 Municipal Budget as attached hereto. Section 4: In case of a vacancy in any office specified in this Ordinance, the Appointing Authority shall not be required to fill such office, if, in his or her judgment or discretion, there is no necessity therefore. Section 5: The 2012 Municipal Budget may be amended as provided by law. Section 6: This ordinance shall be in full force and effect from and after passage and approval pursuant to law. APPROVED THIS 13' day of December, 2011. Gopal G. Lalmalani Village President PASSED THIS 13'" day of December, 2011. 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J I W H W C� v c LL C V N ` n a LL O 4 N a N U_o n � m V N C U N r n d N 3 v m E U N N Y E n L VILLAGE OF OAK BROOK Interoffice Memorandum TO: David Niemeyer, Village Manager FROM: Sharon Dangles, Finance Director DATE: December 8, 2011 SUBJECT: Information Requested — 2012 Budget Workshop As a follow -up to the budget workshop meetings on November 21St and 22 "d, further information was requested on behalf of the Village Board. 1) How much revenue is attributed to the 3% increase in the water rate? This makes up an increase of $150,000, while the 20% increase makes up approximately $985,000 in additional revenues. 2) Attached is an overtime analysis by department for the last five (5) years. 3) Attached are the Full -time equivalents (FTE's) by department for the last five years. 4) Can the Village pre -pay any loans? The Village has two (2) contract installment certificates outstanding. The Sports Core loan is for the expansion and renovation of the Bath & Tennis Clubhouse, in which the last payment is to be made in 2012 and the 2009 refixnding certificates for the expansion of the Village Hall West Wing building. Trustee Yusif and I researched the idea earlier this year to see if the Village can prepay the 2009 certificates, however due to the agreement with bondholders the Village would incur a pre - payment penalty. The 2012 interest rate on the 2009 refimding certificates is 2.00% and the last payment on the loan is in year 2017. We are requesting further information on the Promenade TIF (Tax Increment Financing) Note and will have more information to the Village Board after the first of the year. 5) Sports Core Grant — The capital bill that included the $187,000 grant was not passed by the State legislature. Several legislator observers believe the bill will be resurrected in 2012. 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