S-1481 - 12/13/2016 - BUDGET - Ordinances (2)BOT AGENDA Page 1
AGENDA ITEM
Regular Board of Trustees Meeting
of
December 13, 2016
SUBJECT: 2016 Budget Amendment
FROM: Jason Paprocki, Interim Finance Director
BUDGET SOURCE/BUDGET IMPACT: Equipment Replacement Fund budget amendment
decreasing account 342-80200 “Transfer Out/In” and increasing account 342-90200 “Equipment
Replacement” by $662,600.
RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2016-
BU-AMEND-S-1481 “An Ordinance Authorizing An Amendment To The 2016 Budget” to
decrease account 342-80200 “Transfer Out/In” and increase account 342-90200 “Equipment
Replacement” by $662,600 for the outright purchase of a 2016 Pierce Enforcer Rescue Engine.
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:
RG
BOT AGENDA Page 2
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.
During the 2016 Annual Budget process, the Village planned to enter into a lease
agreement for the purchase of a new Fire Rescue Engine. The budget called for part of
the funds previously accumulated for the purchase of the Rescue Engine to be used for
additional public safety pension contributions. The Equipment Replacement Fund
included a $100,000 budget for the initial lease payment in account 342-90200
“Equipment Replacement”. The 2016 Annual Budget also included a transfer of
$662,600 from the Equipment Replacement Fund to the General Fund in account 342-
80200 “Transfer Out/In” to make additional public safety pension contributions.
At the November 22, 2016 Regular Board of Trustees Meeting, the Board voted not to
use the budgeted $662,600 transfer out of the Equipment Replacement Fund for
additional public safety pension contributions. The Board has expressed a desire to
purchase the Rescue Engine outright rather than lease. A budget amendment is required
to decrease the budget in account 342-80200 “Transfer Out/In” and increase the budget in
account 342-90200 “Equipment Replacement” by $662,600.
The budget amendment of $662,600, combined with the budgeted initial lease payment of
$100,000 will be used to purchase the Rescue Engine outright. After the transfer, the
total budget for the purchase will be $762,600, with the purchase price being $744,579.
Recommendation:
I move that the Village Board approve Ordinance 2016-BU-AMEND-S-1481 “An
Ordinance Authorizing An Amendment To The 2016 Budget” to decrease account 342-
80200 “Transfer Out/In” and increase account 342-90200 “Equipment Replacement” by
$662,600 for the outright purchase of a 2016 Pierce Enforcer Rescue Engine.
ORDINANCE 2016-BU-AMEND-S-1481
AN ORDINANCE AUTHORIZING AN AMENDMENT
TO THE 2016 BUDGET
WHEREAS, the Village Manager has recommended an amendment to the 2016 Budget for the
purchase of a new 2016 Pierce Enforcer Rescue Engine; 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 Equipment Replacement Fund in the 2016 budget is amended by increasing the
amount in account 342-90200, “Equipment Replacement” by $662,600.00, and decreasing the amount in
account 342-80200, “Transfer Out/In” by $662,600.00.
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.
APPROVED THIS 13th day of December, 2016.
Gopal G. Lalmalani
Village President
PASSED THIS 13th day of December, 2016.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk