S-1489 - 03/28/2017 - BUDGET - Ordinances Supporting Documents ITEM 6.C. 1)
BOARD OF TRUSTEES MEETING
VILLAGE of SAMUEL E. DEAN BOARD ROOM
OAK B c �z, K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
March 28, 2017
SUBJECT: Transfers Among Budget Line Item`s
FROM: Jason Paprocki, Finance Director Je
BUDGET SOURCE/BUDGET IMPACT: Effects Numerous Budget Programs
RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2017-
BU-EX-S-1489,"An Ordinance Authorizing Transfers Among Budget Line Items" for the
year ended December 31,2016.
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.
Now that all of the year-end accounting adjustments have been made, several budget
accounts, categories, and programs have been determined to have ended 2015 over budget.
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.
BOT AGENDA Page 1 RG
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.
In order to make as few changes to the originally adopted budget as possible, formal
budgetary control has been established at the category level, i.e. personnel, materials and
supplies, operation and contractual, and capital. For example, if staff turnover created a
need for overtime, this may lead to the overtime account going over budget. However,
this would likely be offset by an under budget salary account. By not doing budget
transfers for these types of situations we preserve the original budget as the basis for
evaluating our actual performance versus expected performance.
Through Budget Year 2002, staff approved an extensive listing of budget transfers
administratively due to budget variances in account categories within a single budget
program as provided for under Procedure #1. In practice, these transfers were only
reflected in the Village's audit report-our accounting records were never adjusted for any
budget transfers in order to maintain proper original budget/actual comparison data.
With the new reporting requirements associated with GASB Statement#34,the Village is
now required to publish original budget amounts in addition to revised budget amounts in
its audit report. This requirement reduces the value of these administrative transfers
required under option #1. After consultation with the Village's auditors, in Budget Year
2003 and thereafter only program-to-program transfers and additional fund
appropriations are recorded. These transfers are required since this is the level of legal
control where budget compliance is measured.
In addition to the budget transfers required under the Village's Financial Policy
ordinance, during 2004 the Village Board began requiring budget transfers during the
year when an individual line item account exceeded budget by more than 10%. This
policy was revised in October, 2006 by eliminating the 10% threshold and instead
requiring line item transfers when an account exceeds its budget by $2,500 in a material
and supply, operation and contractual or capital account (60000 to 90000 account series)
or $10,000 in a personnel series account (50000 account series). Many of these transfers
have already been approved by the Village Board and have been posted to the accounting
system; thus,these transfers are not reflected here.
Please note that all transfers are only for the amounts necessary to offset the individual
program budget variances, and in most cases the transfer is done only to the individual
line item that has the largest variance. In most cases it is several accounts that would
BOT AGENDA Page 2
cause a program to exceed its budget. Also, in some cases the variance in a particular
line item may be greater than the amount of the transfer, with offsets found in other line
items within the budget program. After these transfers are made, numerous line-items
and categories will remain over budget; however, each program in total will be within
budget.
Program Transfers
The General Corporate Fund ended the year with an increase in fund balance (unaudited)
of$2.7 million. The total revenues were $24.5 million with total expenditures of$21.8
million. There are numerous situations that occur during the year which may cause a
particular line item to go over the annual budget. The following is a brief explanation of
the causes of individual account transfers that exceed $10,000:
Program 121 —Legal: Account 121-77000 (Other Services) is over budget in total by
$11,200 due to Route 83 and 22nd Street surveying costs.
Program 321 —Buildings& Grounds: Account 321-72200 (Maintenance Buildings) is
over budget in total by$22,165 due to various roofing and heating and cooling
emergency repairs. Account 321-72300 (Maintenance Other Equipment) is over budget
in total by$12,010 due to emergency heating and cooling repairs. Account 321-90100
(New Equipment) is over budget in total by $23,535 due to a compressor and hot water
heater replacement.
Program 621 —Police Field Services: Account 621-50330 (Sal-Overtime-Spec Detail) is
over budget by$28,180 due to an increase in billed police services. This service is billed
and reimbursed to the Village.
Program 622—Auxiliary: Account 622-50330 (Sal-Overtime-Spec Detail) is over budget
by$26,100 due to an increase in billed police services. This service is billed and
reimbursed to the Village.
Program 700—Fire, Rescue, &EMS Operations: Account 700-51500 (Health Insurance)
is over budget by$27,495 due to changes in enrollments during the year.
Program 711 —Rescue & Fire Service Management: Account 711-50300 (Salaries-
Overtime) is over budget by $27,545 due to additional 7G2 hours worked.
Program 921 —Code Enforcement: Account 921-50000 (Salaries Full-Time) is over
budget by$23,545 due to the payout of accrued benefits for a retired employee.
Program 171 —Hotel/Motel Tax: Account 171-73600 (Advertising/Promotion) is over
budget by$33,010 due to DCVB dues being budgeted at 20%of revenues instead of 25%
and an increase in advertising.
BOT AGENDA Page 3
Program 361 —Streets General Salaries: Account 361-50200 (Salaries-Seasonal) is over
budget by$16,205 due to the increased usage of seasonal staff instead of full and part-
time.
Program 362—Streets& Traffic Maint.: Account 362-71500 (Maint. Svc-Traffic
Control) is over budget by $25,195 due to increased traffic light maintenance costs.
Program 460—Engineering: Account 460-50000 (Salaries Full-Time) is over budget by
$59,385 due to severance payments made to former employees.
Program 351 —Water Operations: Account 351-50300 (Salaries-Overtime) is over
budget by$16,465 due to time spent on emergency water main breaks throughout the
year. Account 351-65000 (General Equipment) is over budget by$71,700 due to the
replacement of water meters and MTU's. Account 351-71700 (Maint.-Distr. System) is
over budget by$11,940 due to emergency water main breaks. Account 351-77000
(Other Services) is over budget by$16,965 due to a leak detection survey.
Program 811 —Sports Core General Operations: Account 811-50000 (Salaries Full-
Time) is over budget by $11,090 due to the hiring of the Swim and Tennis Club Manager.
Program 813—Summer Tennis: Account 813-50500 (Commissions) is over budget by
$17,260 due to a change in the pay structure of the head tennis professional.
Program 816—Open Fields: Account 816-99010 (Overhead Allocation) is over budget
by $12,910 due to a change in allocations during the year.
Program 821 —Clubhouse F&B Operations: Account 821-54050 (Unemployment
Compensation) is over budget by$12,205 due to a change in employee staffing. Account
821-72200 (Maintenance Buildings) is over budget by $29,560 due to a sewer line
replacement project and other repairs. Account 821-99010 (Overhead Allocation) is over
budget by$23,170 due to a change in allocations during the year.
Program 831 —Golf Club General Operations: Account 831-50000 (Salaries Full-Time)
is over budget by$14,085 due to a golf course management reorganization. Account
831-63000 (Cost of Sales) is over budget by$11,495 due to an increase in the cost of
inventory.
Program 833 —Golf Cart Operations: Account 833-50200 (Salaries-Seasonal) is over
budget by$22,525 due to increased staffing needs during the season. Account 833-
62200 (Maintenance Supplies) is over budget by$52,015 due to the replacement of golf
cart batteries.
Program 133 —Employee Benefits: Account 133-70300 (Specific Premium) is over
budget by$12,195 due to an increase in health claims. Account 133-70340 (HMO
Premiums) is over budget by$29,170 due to premium increases being higher than
expected. Account 133-70600 (Administrative Fee) is over budget by$17,995 due to an
BOT AGENDA Page 4
increase in health care services offered. Account 133-70900 (Dental Claims) is over
budget by$22,985 due to claims being higher than anticipated. Account 133-77000
(Other Services) is over budget by$10,150 due to an increase in FSA service fees.
Program 341 —Garage Operations: Account 341-77000 (Other Services) is over budget
by$31,945 due to a fleet management services study.
Program 342—Equipment Replacement: Account 342-65000 (General Equipment) is
over budget by $24,485 due to an increase in non-capital equipment costs.
Budget Amendments
Promenade TIF Fund—Account 283-80700 (Debt Principal)was increased $5,000 due to
additional TIF note principal paid. Account 283-80100(Interest Expense)was increased
$220 due to additional TIF note interest paid. Account 283-77000 (Other Services)was
increased $140 due to additional TIF reporting expenses.
Recommendation:
Staff recommends the Village Board approve Ordinance 2017-BU-EX-S-1489, "An
Ordinance Authorizing Transfers Among Budget Line Items" for the year ended
December 31, 2016.
BOT AGENDA Page 5
ORDINANCE 2017-BU-EX-S-1489
AN ORDINANCE AUTHORIZING TRANSFERS
AMONG BUDGET LINE ITEMS
WHEREAS, the Village Manager has recommended certain transfers among budget line items in
the Annual Budget Ordinance passed for the fiscal year beginning January 1, 2016 and ending December
31, 2016 and certain transfers of sums of money in said Budget Ordinance from one object or purpose to
another object or purpose; 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
transfers are hereby authorized:
Section 1: The recitals above are hereby incorporated into and made a part of this ordinance.
Section 2: In the attached schedule, attached as "Exhibit A", the amounts shown in the column
titled "Transferred From" represent unexpended balances. The total of said amounts are hereby
transferred to the various items specified in the "Transferred To" column immediately opposite the items
specified in the"Transferred From"column.
Section 3: The Promenade TIF Fund budget is amended by increasing the amounts in the
following accounts:
1. Account 283-80700(Debt Principal), by$5,000
2. Account 283-80100 (Interest Expense) by$220
3. Account 283-77000(Other Services)by$140
which increases 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.
[SIGNATURE PAGE FOLLOWS]
Ordinance 2017-BU-EX1-S-1489
Authorizing Transfers Among Budget
Line Items Page 2 of 2
APPROVED THIS 28th day of March, 2017.
Gopal G. Lalmalani
Village President
PASSED THIS 28th day of March, 2017.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Village of Oak Brook Exhibit A
Budget Transfers
12/31/2016
For Village President and Board of Trustee Approval
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
General Corporate Fund
111-Board of Trustees
111-73650 Videotaping Services 2,900 111-76950 Consulting Services 2,900
121-Legal
112-50000 Salaries Full-Time 4,045 112-50100 Salaries Part-Time 6,705
112-73100 Printing Services 2,660
121-Legal
121-76300 Outside Legal Services 3,000 121-76330 Legal Contingency 17,500
121-76320 Village Prosecutor 3,300
121-77000 Other Services 11,200
132-Human Resources
132-50100 Salaries Part-Time 3,195 132-50000 Salaries Full-Time 3,195
132-77000 Other Services 6,405 132-76950 Consulting Services 6,405
151-Information Services
151-91600 Computer Hardware&Software 6,370 151-76950 Consulting Services 6,370
162-Emergency Management
162-65000 General Equipment 6,285 631-60450 Uniforms 6,285
321-Buildings&Grounds
321-72200 Maintenance Buildings 22,165 321-62200 Maintenance Supplies 4,875
321-72300 Maint.Other Equipment 12,010 321-71300 Electric 39,765
321-77000 Other Services 5,200 321-71400 Laundry&Cleaning 18,270
321-90100 New Equipment 23,535
335-Forestry
335-76800 Tree Services 5,150 335-76850 Leaf Disposal 5,150
621-Police Field Services
621-50330 Sal-Overtime-Spec Detail 28,180 621-50000 Salaries Full-Time 28,180
622-Auxiliary
622-50330 Sal-Overtime-Spec Detail 26,100 622-50100 Salaries Part-Time 7,360
622-51400 FICA 2,735 621-50000 Salaries Full-Time 21,475
631-Support Services General
631-52300 Training 6,710 631-51200 Police Pension 6,710
632-Support Services Detectives
632-50330 Sal-Overtime-Spec Detail 4,115 632-50300 Salaries-Overtime 4,115
700-Fire.Rescue.&EMS Operations
700-51500 Health Insurance 27,495 700-50300 Salaries-Overtime 27,495
711-Rescue&Fire Service Management
711-50300 Salaries-Overtime 27,545 711-51300 Fire Pension 12,375
711-76700 Contract Services 10,240
711-76750 DU-COMM 4,930
Village of Oak Brook Exhibit A
Budget Transfers
12/31/2016
For Village President and Board of Trustee Approval
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
921-Code Enforcement
921-50000 Salaries Full-Time 23,545 921-50100 Salaries Part-Time 11,265
911-50000 Salaries Full-Time 12,280
Total General Corporate Fund 263,845 263,845
Hotel/Motel Tax Fund
171-Hotel/Motel Tax
171-73600 Advertising/Promotion 33,010 171-90400 Structural Improvements 33,010
Total Hotel/Motel Tax Fund 33,010 33,010
Infrastructure Fund
361-Streets General Salaries
361-50200 Salaries-Seasonal 16,205 361-50300 Salaries-Overtime 16,205
362-Streets&Traffic Maintenance
362-71500 Maint.Svc-Traffic Control 25,195 362-62200 Maintenance Supplies 31,065
362-73450 Hauling Services 5,870
460-Engineering
460-50000 Salaries Full-Time 59,385 460-76200 Engineering Services 64,940
460-51100 IMRF 3,970
460-51400 FICA 1,585
Total Infrastructure Fund 112,210 1124210
Water Fund
351-Water Operations
351-50000 Salaries Full-Time 6,355
351-50300 Salaries-Overtime 16,465 351-74300 DWC Oper.&Maint.Costs 143,685
351-51100 IMRF 2,125
351-51500 Health Insurance 9,055
351-62200 Maintenance Supplies 9,080
351-65000 General Equipment 71,700
351-71700 Maint.-Distr.System 11,940
351-77000 Other Services 16,965
Total Water Fund 143,685 143,685
Sports Core Fund
811-Sports Core General Operations
811-50000 Salaries Full-Time 11,090 811-50100 Salaries Part-Time 8,495
811-54050 Unemployment Compensation 9,030 811-50200 Salaries-Seasonal 24,660
811-70100 Liability Insurance 6,965 811-60200 Postage 105
811-73700 Bank Service Fees 6,175
812-Swimming Operations
812-61450 Swimming Supplies 3,255 812-65000 General Equipment 5,990
812-72300 Maint.Other Equipment 2,545 812-77100 Pool Management Fees 5,895
812-72800 Maint.Services-Swimming 8,295 812-90200 Equipment Replacement 6,845
812-77000 Other Services 4,635
813-Summer Tennis
813-50500 Commissions 17,260 813-50200 Salaries-Seasonal 17,260
Village of Oak Brook Exhibit A
Budget Transfers
12/31/2016
For Village President and Board of Trustee Approval
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
816-Open Fields
816-99010 Overhead Charge 12,910 822-99010 Overhead Charge 12,910
821-Clubhouse F&B Operations
821-54050 Unemployment Compensation 12,205 821-50000 Salaries Full-Time 12,940
821-72200 Maintenance Buildings 29,560 821-50500 Commissions 11,525
821-72300 Maint.Other Equipment 7,575 821-51100 IMRF 2,730
821-73000 Advertising 5,680 821-52400 Dues&Memberships 1,400
821-77000 Other Services 3,520 821-61100 Cleaning Supplies 280
821-99010 Overhead Charge 23,170 821-62300 Building Maint.Supplies 2,215
821-65000 General Equipment 2,000
821-71200 Natural Gas 3,160
821-71400 Laundry&Cleaning 1,630
811-60200 Postage 4,895
811-62450 Copying&Printing 2,075
811-71300 Electric 3,000
811-72200 Maintenance Buildings 6,250
811-72600 Rentals 2,125
811-77000 Other Services 2,315
822-99010 Overhead Charge 23,170
822-Poolside Grill Food&Beverage
822-63200 Food Cost 5,220 816-79400 Independence Day 5,220
823-Golf Food&Beverage
823-50200 Salaries-Seasonal 9,885 823-50100 Salaries Part-Time 3,970
823-63250 Beverage/Liquor Cost 6,320 823-54050 Unemployment Compensation 2,380
823-63300 Candy/Cigarette Cost 6,785 823-61500 Kitchen Supplies 425
823-63200 Food Cost 10,590
816-65000 General Equipment 1,800
816-72200 Maintenance Buildings 3,420
816-77000 Other Services 405
831-Golf Club General Operations
831-50000 Salaries Full-Time 14,085 831-50100 Salaries Part-Time 3,305
831-51100 IMRF 5,785 831-50200 Salaries-Seasonal 14,085
831-51400 FICA 1,700 831-54050 Unemployment Compensation 6,525
831-51500 Health Insurance 6,360 831-65000 General Equipment 2,500
831-63000 Cost of Sales 11,495 831-70100 Liability Insurance 12,885
831-90200 Equipment Replacement 7,915 831-72200 Maintenance Buildings 8,040
832-Golf Learning&Practice
832-50500 Commissions 6,705 832-61700 Golf Course Supplies 4,830
832-65000 General Equipment 1,875
833-Golf Cart Operations
833-50200 Salaries-Seasonal 22,525 833-90200 Equipment Replacement 50,000
833-62200 Maintenance Supplies 52,015 834-50200 Salaries-Seasonal 26,265
833-51400 FICA 1,725
834-Golf Course Maintenance
834-54050 Unemployment Compensation 3,470 834-50000 Salaries Full-Time 3,470
834-72300 Maint.Other Equipment 4,625 834-72000 Maint.-Roads&Paths 6,855
834-77000 Other Services 2,525 834-73400 Garbage Disposal 295
Total Sports Con:Fund 333,010 333,010
Village of Oak Brook Exhibit A
Budget Transfers
12/31/2016
For Village President and Board of Trustee Approval
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
Self Insurance Fund
133-Employee Benefits
133-70300 Specific Premium 12,195 133-70800 Health Claims 98,910
133-70340 HMO Premiums 29,170
133-70350 Vision Insurance 6,415
133-70600 Administrative Fee 17,995
133-70900 Dental Claims 22,985
133-77000 Other Services 10,150
Total Self Insurance Fund 98,910 98,910
Garage Fund
341-Garage Operations
341-77000 Other Services 31,945 341-71600 Maintenance Vehicles 31,945
Total Garage Fund 31,945 31,945
Equipment Replacement Fund
342-Equipment Replacement
342-65000 General Equipment 24,485 342-90200 Equipment Replacement 24,485
Total Equipment Replacement Fund 24,485 24,485
Total-All Funds 1,041,100 1,041,100