Submitted By
Steven Drazner, Chief Financial Officer
Reviewed By
LKS
Agenda Item Title
Title
An Ordinance Amending the Second Quarter, Fiscal Year 2017 Annual Budget
End
Overview
Overview
New appropriations are recommended when a reasonable operational need exists but was not contemplated in the original budget document. The attached Ordinance contains budgets modifications which call for new funding as well as offsetting budget transfers from original adopted appropriations.
Body
Staff Recommendation
Adopt the Ordinance
Fiscal Impact
The attached Ordinance recommends total budget amendments of $14,943,311, of which, $12,786,401 are carryovers from the prior fiscal year and $2,156,910 are budget requests for additional funds. There are also several requested reallocations (budget transfers from one account to another) which net to zero.
Approximately 85% of the requested Q2 budget amendments are carryovers of unspent funds from previous year’s budget. In particular, $9,883,114 of the carryover is related to the Lake & Forest Garage which was budgeted in FY16 although the Village actually paid the developer for its share of the project in early 2017.
New funding requests are primarily the result of an adjustment for central dispatch service expenditures which were underestimated in the budget. Due to a change in the Illinois ETSB law, it is anticipated that the 911 surcharge revenues currently collected by the Village will be diverted to the WSCD starting with liability month July 2017 and will then offset the WSCD invoices billed to the Village. However, due to several months of delay collecting this revenue, these expense offsets will likely not be realized until next fiscal year. Therefore, central dispatch expense will be disproportionately high the remainder of this year and the Village anticipates a significant reduction for this expense in next year’s budget.
The other large requested new funding amendment is expense related to the Lincoln property for environmental remediation, utility relation, and demolition costs.
Background
The Village Board agreed to a process of as they approve an agenda item, the budget amendment will follow on a quarterly basis.
Alternatives
Additional information will be provided upon request.
Previous Board Action
Ordinance 17-197 was previously approved to amend the FY17 budget for adjustments requested during Q1, 2017.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
N/A.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
N/A.