Submitted By
Steven Drazner, Chief Financial Officer
Reviewed By
AMZ
Agenda Item Title
Title
An Ordinance Amending the Fiscal Year 2021 Annual Budget
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Overview
Overview
This is a special budget amendment to request appropriate of funds related to recent approval of a successor collective bargaining agreement as well as the addition of certain full time positions to be filled prior to fiscal year end.
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Recommendation
Recommendation
Adopt the Ordinance.
Fiscal Impact
A summary of the amendments presented for Board consideration by Fund are summarized are as follows:
General Fund- Public Health $99,145
General Fund- Finance $41,490
TOTAL $140,635
These new funding amendments would appropriate funding for the remainder of FY21 to allow the search and hiring of the following positions:
• Public Health Department Environmental Health Supervisor
• Public Health Department Education Manager
• Finance Department Budget and Revenue Analyst
In addition, one reclassification amendment is included which provides an appropriation for a current year wage adjustments of 2.5% and merit of 1.0% for recently approved successor collective bargaining agreements and consistent with the Village’s past practice equal wage adjustments for non-union employees which is done to prevent wage compaction. The funding for this amendment would be a reclassification of $608,900 from the contra-expense turnover savings account to various salary accounts. Please note that $891,100 would still remain in the turnover savings account if the Board approves this budget amendment.
Please refer to the detailed budget amendment sheets attached to this agenda item for in-depth information on each of the amendments being recommended by staff for Board approval.
It is also noted that the Public Health Positions are funded via the America Rescue Plan Act (ARPA) recovered revenues approved by the Village Board at the July 19, 2021 Village Board meeting and therefore, the positions will be recruited with the condition that they are funded thru 2026. Future continuation of the position would be evaluated in 2026.
Background
The annual budget which provides a ceiling on spending by account, department, and fund is approved each December for the subsequent fiscal year. While every effort is made during the budget process to project and forecast spending for the following year, there are instances when a budget amendment may be required in the following situations:
1) Funds were not entirely spent in the preceding year and it is thus necessary to shift the unspent budget into the current fiscal year (a “Carryforward” budget amendment).
2) Unforeseen expenditures which were not budgeted are necessary (a “New Money” budget amendment).
3) Funds are merely moved from one account to another within the budget (a “Reclassification” budget amendment).
Alternatives
Additional information will be provided upon request.
Previous Board Action
Ordinance 21-55 was adopted on July 19, 2021.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A