Submitted By
Steve Drazner, CFO
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
An Ordinance Amending the Fiscal Year 2023 Annual Budget
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Overview
Overview
An ordinance is hereby presented to modify selected appropriations in the FY23 Adopted Budget. On a continual basis, staff evaluates expenditures to ascertain that projected costs for the year will come in at or below budget. If there is an unanticipated expense or cost, this must be accounted for in the budget via a Village Board-approved budget amendment.
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Recommendation
Recommendation
Adopt the Ordinance
Background
The annual budget provides a ceiling on spending by account, department, and Fund. While every effort is made during the budget process to accurately forecast spending, there are times when a budget amendment is needed, such as in the following circumstances:
1) Funds were not entirely spent in the preceding year due to the timing of invoicing and it is thus necessary to shift unspent funds into the current year (a “carryforward” budget amendment)
2) Unforeseen expenditures which were not budgeted are now needed (a “new money” amendment)
3) Funds are merely being moved from one account to another account within the budget (a “reclassification” amendment)
Fiscal Impact
The new funding amendments, as presented for Board consideration, total $285,909. The breakdown of this is: $200,000 for the COVID-19 vaccination grant, $17,409 to do an interfund transfer (will have no effect on cash or overall aggregated fund balance) from Special Service Area #8 to the CIP Fund, $35,000 requested from IT for a cyber security assessment, $3,500 from Finance needed to wipe/delete the hard drives of the returned Xerox copiers, and $30,000 from Public Works Fleet to cover the potential costs of necessary autobody repairs.
In addition, there are $477,535 in carryover amendments requested for monies not spent in the prior year. These carryovers include $248,827 for previous Board authorized ARPA funds to Housing Forward, $159,138 needed for the COVID-19 Response Grant (covered by grant revenues), $19,570 requested by HR for police/fire testing services, and $50,000 requested in CDBG funds for the lead water service line replacement program.
There are also several reclassification amendments which merely move money from one account to another. These reclassifications will not reduce cash or fund balance.
The new funding and carryover amendments summarized by Fund are:
General $ 88,070
ARPA $248,827
CDBG $ 50,000
SSA#8 $ 17,409
COVID Vax Grant $200,000
COVID Response Grant $159,138
TOTAL $763,444
The detailed explanations for all requested amendments are attached to this agenda item.
DEI Impact
None
Alternatives
N/A
Previous Board Action
On March 20, 2023, the Village Board adopted ORD 23-12, an Ordinance Amending the Fiscal Year 2023 Annual Budget.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A