S-1526 - 03/27/2018 - BUDGET - Ordinances Supporting DocumentsBOT AGENDA Page 1
BOARD OF TRUSTEES MEETING
SAMUEL E. DEAN BOARD ROOM
BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
March 27, 2018
SUBJECT: Amendments and Transfers Among Budget Line Items
FROM: Jason Paprocki, Finance Director
BUDGET SOURCE/BUDGET IMPACT: Effects Numerous Budget Programs
RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2018-
BU-AMEND-S-1526, “An Ordinance Authorizing Amendments and Transfers Among
Budget Line Items”.
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.
Agenda Item 6.D.2
BOT AGENDA Page 2
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
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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 $1.0 million. The total revenues were $24.3 million with total expenditures of $23.3
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 121-76300 (Outside Legal Services) is over budget in
total by $14,630 due to red light camera and other legal fees. Account 121-76310
(Village Attorney) is over budget in total by $42,005 due to red light camera related fees.
Program 132 – Human Resources: Account 132-52100 (Physical Examinations) is over
budget in total by $11,130 due to a change in the program where exam fees are recorded.
Program 151 – Information Services: Account 151-72500 (Maintenance Computers) is
over budget in total by $25,655 due to DuPage County Hexagon RMS fees. Account
151-91600 (Computer Hardware & Software) is over budget in total by $22,315 due to
Village Hall keyless entry system improvements.
Program 321 – Buildings & Grounds: Account 321-72200 (Maintenance Buildings) is
over budget in total by $23,685 due to various emergency repairs. Account 321-72300
(Maintenance Other Equipment) is over budget in total by $27,510 due to emergency
heating and cooling repairs. Account 321-77000 (Other Services) is over budget in total
by $10,510 due to emergency sewer service repairs.
Program 335 – Forestry: Account 335-76800 (Tree Services) is over budget in total by
$30,550 due to increased tree removals and replanting.
Program 421 – Municipal Building Improvements: Account 421-90400 (Structural
Improvements) is over budget in total by $108,735 due to the Butler Government Center
electrical upgrade and Police Department renovation project.
Program 700 – Fire, Rescue, & EMS Operations: Account 700-50000 (Salaries Full-
Time) is over budget by $24,370 due to a settled union contract.
Program 911 – Development Services Management: Account 911-51100 (IMRF) is over
budget by $12,450 due to a retirement.
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Program 360 – Public Works Management: Account 360-70100 (Liability Insurance) is
over budget by $15,855 due to increased claims compared to historical averages.
Program 363 – Snow Removal: Account 363-90400 (Structural Improvements) is over
budget by $24,680 due to salt dome roof repairs.
Program 364 – Drainage Maintenance: Account 364-71900 (Maint.-Storm Sewer) is
over budget by $11,875 due to increased storm sewer cleaning.
Program 460 – Engineering: Account 460-76200 (Engineering Services) is over budget
by $113,095 due to the full outsourcing of the Village engineering function.
Program 461 – Roadway Improvements: Account 461-76200 (Engineering Services) is
over budget by $199,795 due to the full outsourcing of the Village engineering function.
Program 351 – Water Operations: Account 351-65000 (General Equipment) is over
budget by $33,430 due to the replacement of water meters and MTU’s.
Program 451 – Water System Improvements: Account 451-65000 (General Equipment)
is over budget by $385,550 due to the replacement of water meters. Account 451-76200
(Engineering Services) is over budget by $29,395 due to the water system master plan
update.
Program 811 – Sports Core General Operations: Account 811-50000 (Salaries Full-
Time) is over budget by $22,985 due to employee turnover. Account 811-50200
(Salaries Seasonal) is over budget by $11,305 due to the reclassification of part-time
salaries.
Program 812 – Swimming Operations: Account 812-65000 (General Equipment) is over
budget by $20,935 due to the purchase of new pool furniture. Account 812-77100 (Pool
Management Fees) is over budget by $13,185 due to the turnover in management
companies.
Program 821 – Clubhouse F&B Operations: Account 821-65000 (General Equipment) is
over budget by $22,315 due to the clubhouse renovation project. Account 821-71400
(Laundry & Cleaning) is over budget by $16,340 due to increased event cleanup fees.
Program 822 – Poolside Grill Food & Beverage: Account 822-65000 (General
Equipment) is over budget by $17,535 due to café furniture replacement.
Program 823 – Golf Food & Beverage: Account 823-63250 (Beverage/Liquor Cost) is
over budget by $10,465 due to increased sales during the golf season.
Program 831 – Golf Club General Operations: Account 831-73700 (Bank Service Fee) is
over budget by $10,330 due to increased credit card processing. Account 831-77000
(Other Services) is over budget by $17,645 due to clubhouse improvements engineering
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costs. Account 831-90200 (Equipment Replacement) is over budget by $13,900 due to
an emergency water heater replacement.
Program 832 – Golf Learning & Practice: Account 832-50500 (Commissions) is over
budget by $13,665 due to an increase in golf lessons.
Program 833 – Golf Cart Operations: Account 833-50200 (Salaries-Seasonal) is over
budget by $25,045 due to increased staffing needs during the season.
Program 341 – Garage Operations: Account 341-71600 (Maintenance Vehicles) is over
budget by $26,230 due to an increase parts purchases.
Budget Amendments
Self Insurance Fund – Account 133-70800 (Health Claims) was increased $288,595 due
to an increase in PPO claims.
Equipment Replacement Fund – Account 342-65000 (General Equipment) was increased
$29,395 due to SCBA equipment purchased. Account 342-71600 (Maintenance
Vehicles) was increased $54,610 due to an extended warranty purchased on a fire
vehicle. Account 342-90200 (Equipment Replacement) was increased $758,800 due to a
fire vehicle budgeted in 2016 being received during 2017.
Recommendation:
Staff recommends the Village Board approve Ordinance 2018-BU-AMEND-S-1526, “An
Ordinance Authorizing Amendments and Transfers Among Budget Line Items” for the
year ended December 31, 2017.
ORDINANCE 2018-BU-AMEND-S-1526
AN ORDINANCE AUTHORIZING AMENDMENTS AND TRANSFERS
AMONG BUDGET LINE ITEMS
WHEREAS, the Village Manager has recommended certain amendments and transfers among
budget line items in the Annual Budget Ordinance passed for the fiscal year beginning January 1, 2017 and
ending December 31, 2017 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
amendment is 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 various items specified in the “Transferred To” column immediately opposite the items specified in the
“Transferred From” column.
Section 3: The Self Insurance Fund budget is amended by increasing the amounts in the following
accounts:
1. Account 133-70800 (Health Claims), by $288,595
Section 4: The Equipment Replacement Fund budget is amended by increasing the amounts in
the following accounts:
1. Account 342-65000 (General Equipment), by $29,395
2. Account 342-71600 (Maintenance Vehicles), by $54,610
3. Account 342-90200 (Equipment Replacement), by $758,800
Section 5: This ordinance shall be in full force and effect from and after its passage and approval
as required by law.
Section 6: 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 2018-BU-AMEND-S-1526
Authorizing An Amendment To
The 2018 Budget Page 2 of 2
APPROVED THIS 27th day of March, 2018.
Gopal G. Lalmalani
Village President
PASSED THIS 27th day of March, 2018.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Exhibit A
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
General Corporate Fund
121 ‐ Legal
121‐76300 Outside Legal Services 14,630 121‐76330 Legal Contingency 40,000
121‐76310 Village Attorney 42,005 121‐76360 Labor Attorney 16,635
131 ‐ General Management
131‐50000 Salaries Full‐Time 4,250 131‐60200 Postage 4,250
131‐77000 Other Services 2,970 131‐76950 Consulting Services 2,970
132 ‐ Human Resources
132‐52100 Physical Examinations 11,130 132‐76600 Police & Fire Testing 20,510
132‐77000 Other Services 9,380
136 ‐ Customer Service
136‐76700 Contract Services 1,755 136‐50100 Salaries Part‐Time 1,755
151 ‐ Information Services
151‐62400 Computer Supplies 5,080 132‐76950 Consulting Services 4,975
151‐65000 General Equipment 1,810 151‐51500 Health Insurance 1,385
151‐72500 Maintenance Computers 25,655 151‐52300 Training 10,395
151‐76950 Consulting Services 3,295 151‐71100 Telecom Services 21,480
151‐77000 Other Services 1,915 151‐72550 Internet Services 10,525
151‐91600 Computer Hardware & Software 22,315 151‐76700 Contract Services 11,310
162 ‐ Emergency Management
162‐65000 General Equipment 2,675 162‐72600 Rentals 2,675
321 ‐ Buildings & Grounds
321‐72200 Maintenance Buildings 23,685 321‐50000 Salaries Full‐Time 38,795
321‐72300 Maint. Other Equipment 27,510 321‐51500 Health Insurance 15,725
321‐77000 Other Services 10,510 321‐71300 Electric 7,185
335 ‐ Forestry
335‐76800 Tree Services 30,550 335‐50100 Salaries Part‐Time 560
335‐50300 Salaries Overtime 7,840
335‐76850 Leaf Disposal 22,150
421 ‐ Municipal Building Improvements
421‐90400 Structural Improvements 108,735 421‐76950 Consulting Services 25,000
741‐50300 Salaries Overtime 83,735
621 ‐ Police Field Services
621‐50330 Sal‐Overtime‐Spec Detail 9,920 621‐50300 Salaries Overtime 9,920
622 ‐ Auxiliary
622‐50330 Sal‐Overtime‐Spec Detail 6,370 621‐50000 Salaries Full‐Time 6,370
For Village President and Board of Trustee Approval
Village of Oak Brook
Budget Transfers
12/31/2017
Exhibit A
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
For Village President and Board of Trustee Approval
Village of Oak Brook
Budget Transfers
12/31/2017
700‐ Fire, Rescue, & EMS Operations
700‐50000 Salaries Full‐Time 24,370 700‐50300 Salaries‐Overtime 24,370
911 ‐ Development Services Management
911‐50100 Salaries Part‐Time 9,010 911‐51500 Health Insurance 4,000
911‐50300 Salaries Overtime 7,360 911‐76950 Consulting Services 23,820
911‐51100 IMRF 12,450 911‐77000 Other Services 1,000
Total General Corporate Fund 419,335 419,335
Hotel/Motel Tax Fund
171 ‐ Hotel/Motel Tax
171‐73600 Advertising/Promotion 3,010 171‐76830 2% Beautification & Projects 3,010
Total Hotel/Motel Tax Fund 3,010 3,010
Infrastructure Fund
360 ‐ Public Works Management
360‐70100 Liability Insurance 15,855 361‐50000 Salaries Full‐Time 11,885
360‐76700 Contract Services 7,540 361‐50300 Salaries Overtime 11,510
363 ‐ Snow Removal
363‐90400 Structural Improvements 24,680 363‐61800 Chemicals 24,680
364 ‐ Drainage Maintenance
364‐71900 Maint. ‐ Storm Sewer 11,875 364‐62200 Maintenance Supplies 6,645
364‐90800 Drainage Improvements 5,230
460 ‐ Engineering
460‐76200 Engineering Services 113,095 460‐50100 Salaries Part‐Time 8,000
461‐90700 Street Improvements 105,095
461 ‐ Roadway Improvements
461‐76200 Engineering Services 199,795 461‐90700 Street Improvements 199,795
Total Infrastructure Fund 372,840 372,840
Exhibit A
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
For Village President and Board of Trustee Approval
Village of Oak Brook
Budget Transfers
12/31/2017
Water Fund
351‐Water Operations
351‐51100 IMRF 8,640 351‐74300 DWC Oper. & Maint. Costs 56,680
351‐62200 Maintenance Supplies 2,710
351‐65000 General Equipment 33,430
351‐71300 Electric 8,820
351‐76500 Maint. Services‐Grounds 3,080
451‐Water System Improvements
451‐65000 General Equipment 385,550 451‐90900 Water Meters 414,945
451‐76200 Engineering Services 29,395
Total Water Fund 471,625 471,625
Sports Core Fund
811 ‐ Sports Core General Operations
811‐50000 Salaries Full‐Time 22,985 811‐50100 Salaries Part‐Time 12,460
811‐50200 Salaries Seasonal 11,305 811‐70100 Liability Insurance 6,060
811‐77000 Other Services 6,125
811‐90400 Structural Improvements 9,645
812 ‐ Swimming Operations
812‐65000 General Equipment 20,935 811‐73700 Bank Service Fees 375
812‐71350 Sewer 7,825 812‐50500 Commissions 10,000
812‐76500 Maint. Services‐Grounds 375 812‐77000 Other Services 945
812‐77100 Pool Management Fees 13,185 812‐90200 Equipment Replacement 31,000
816‐Open Fields
816‐65000 General Equipment 3,395 815‐76500 Maint. Services‐Grounds 6,230
816‐79400 Independence Day 2,835
821‐Clubhouse F& B Operations
821‐65000 General Equipment 22,315 811‐60500 Tools & Hardware 2,400
821‐71400 Laundry & Cleaning 16,340 811‐61300 Business Forms 3,515
821‐72200 Maintenance Buildings 5,535 811‐65000 General Equipment 1,095
821‐72300 Maint. Other Equipment 5,840 811‐90400 Structural Improvements 4,525
821‐73000 Advertising 4,880 813‐50200 Salaries Seasonal 11,275
815‐76500 Maint. Services‐Grounds 3,110
821‐50100 Salaries Part‐Time 8,225
821‐69100 Miscellaneous 3,000
821‐71200 Natural Gas 3,745
821‐73100 Printing Services 3,000
821‐73200 Licenses & Fees 295
834‐51100 IMRF 10,725
Exhibit A
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
For Village President and Board of Trustee Approval
Village of Oak Brook
Budget Transfers
12/31/2017
822‐Poolside Grill Food & Beverage
822‐60450 Uniforms 2,165 831‐50200 Salaries Seasonal 26,215
822‐63200 Food Cost 3,485
822‐63250 Beverage/Liquor Cost 3,030
822‐65000 General Equipment 17,535
823‐Golf Food & Beverage
823‐50200 Salaries‐Seasonal 9,635 823‐50100 Salaries Part‐Time 9,635
823‐61600 Paper Products 2,925 823‐63200 Food Cost 13,390
823‐63250 Beverage/Liquor Cost 10,465
831‐Golf Club General Operations
831‐71300 Electric 7,090 831‐90400 Structural Improvements 59,535
831‐71400 Laundry & Cleaning 7,920
831‐72200 Maintenance Buildings 2,650
831‐73700 Bank Service Fee 10,330
831‐77000 Other Services 17,645
831‐90200 Equipment Replacement 13,900
832 ‐ Golf Learning & Practice
832‐50500 Commissions 13,665 831‐63000 Cost of Sales 7,265
831‐73000 Advertising 645
832‐61700 Golf Course Supplies 4,330
832‐65000 General Equipment 1,425
833 ‐ Golf Cart Operations
833‐50200 Salaries‐Seasonal 25,045 815‐76500 Maint. Services‐Grounds 10,640
833‐51400 FICA 1,915 831‐54050 Unemployment Compensation 6,070
833‐62200 Maintenance Supplies 3,410 831‐65000 General Equipment 1,955
831‐70100 Liability Insurance 11,705
834 ‐ Golf Course Maintenance
834‐51500 Health Insurance 9,210 831‐54050 Unemployment Compensation 2,355
834‐54050 Unemployment Compensation 7,500 831‐90400 Structural Improvements 5,145
834‐61700 Golf Course Supplies 4,035 834‐50200 Salaries Seasonal 11,000
834‐61950 Irrigation/Drain Supplies 5,745 834‐60300 Gas & Oil 3,285
834‐65000 General Equipment 4,435 834‐61800 Chemicals 3,040
834‐62000 Flowers 1,360
834‐62100 Trees & Shrubs 2,480
834‐71200 Natural Gas 205
834‐72000 Maint.‐Roads & Paths 2,055
Total Sports Core Fund 321,485 321,485
Exhibit A
Transfer To: Transfer From:
Account Number Account Title Amount Account Number Account Title Amount
For Village President and Board of Trustee Approval
Village of Oak Brook
Budget Transfers
12/31/2017
Self Insurance Fund
133‐Employee Benefits
133‐70340 HMO Premiums 9,385 133‐70200 Aggregate Premium 9,580
133‐70800 Health Claims 9,125 133‐70300 Specific Premium 8,465
133‐76950 Consulting Services 5,930 133‐70350 Vision Insurance 650
133‐77000 Other Services 4,925 133‐70500 Life Insurance 4,455
133‐70600 Administrative Fee 1,625
133‐70900 Dental Claims 4,590
Total Self Insurance Fund 29,365 29,365
Garage Fund
341‐Garage Operations
341‐50200 Salaries Seasonal 8,310 341‐60300 Gas & Oil 38,490
341‐71600 Maintenance Vehicles 26,230
341‐77000 Other Services 3,950
Total Garage Fund 38,490 38,490
Total‐All Funds 1,656,150 1,656,150