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S-1525 - 03/13/2018 - 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 13, 2018 SUBJECT: 2018 Budget Amendment FROM: Jason Paprocki, Finance Director BUDGET SOURCE/BUDGET IMPACT: Amending the 2018 Budget for the Equipment Replacement Fund account 342-90200 by $21,000. RECOMMENDED MOTION: I move that the Village Board adopt Ordinance 2018-BU- AMEND-S-1525 "An Ordinance Authorizing an Amendment to the 2018 Budget” to finish outfitting a Fire Department vehicle. 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. Item 6.D.3 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. At the February 13, 2018 Village Board meeting, the Board approved the purchase of Fire Department vehicle C-94. The total cost of this vehicle is estimated at $66,000 ($38,572 for the vehicle and $27,428 for equipment to outfit). The 2018 Budget includes $45,000 in the Equipment Replacement Fund (account 342-90200) for the estimated replacement cost of the Fire Chief’s vehicle. The costs to outfit the vehicle were more than originally estimated during the 2018 budget process. A budget amendment of $21,000 is necessary to cover the full replacement cost. The additional $21,000 needed will be funded from Equipment Replacement Fund cash reserve balance. As of February 28, 2018, the Equipment Replacement Fund had approximately $1.8 million in cash and investments on hand. Recommendation: I recommend that the Village Board adopt Ordinance 2018-BU-AMEND-S-1525 "An Ordinance Authorizing an Amendment to the 2018 Budget” to finish outfitting a Fire Department vehicle. ORDINANCE 2018-BU-AMEND-S-1525 AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE 2018 BUDGET WHEREAS, the Village Manager has recommended an amendment to the 2018 Budget by increasing the Equipment Replacement Fund for vehicle replacement and outfitting; 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 2018 Equipment Replacement Fund budget is amended by increasing the amount in account 342-90200 by $21,000.00, to be funded from the 2018 Equipment Replacement fund reserve balance, for the replacement and outfitting of a fire department vehicle. 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. [SIGNATURE PAGE FOLLOWS] Ordinance 2018-BU-AMEND-S-1525 Authorizing An Amendment To The 2018 Budget Page 2 of 2 APPROVED THIS 13th day of March, 2018. Gopal G. Lalmalani Village President PASSED THIS 13th day of March, 2018. Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk