Title
2012 Budget Adjustments - Approval
History
A detailed spreadsheet (by fund) of budget adjustments is attached showing an overall decrease in revenues of $24,573 and an overall increase in expenditures of $25,470,536. The General and Recreation and Parks Funds have equal adjustments in revenue and expenditures due to the transfer of funds from the Stabilization Fund for staffing changes. The General Fund adjustment to revenues and expenditures is $90,765 and the adjustment for the Recreation and Parks Fund is $180,678. The remaining adjustments are as follows.
The remaining adjustments to revenues are due to the following:
-- Reduce the operating transfer to the Capital Improvement Fund in the amount of $2,648,008. This operating transfer was from the land.
--Increase the operating transfer to the Home Rule Sales Tax in the amount of $2,351,992 for previous transfers to the Capital Improvement Fund for the funding of the purchase of Main Street Triangle property. As noted above, an operating transfer recorded as revenue of the Capital Improvement Fund did not need to occur as this transaction was instead set up as a loan from the Home Rule Sales Tax Fund to the Main Street Triangle TIF Fund.
--Increase the Water & Sewer Administrative Fee in the General Fund due to the transfer of personnel previously charged to the Water & Sewer Fund to theDevelopment Services Department.
--Increase the operating transfer to the Recreation & Parks Fund to cover the transfer of personnel to the Recreation Department that were previously charged the General Fund Administration Department.
The remaining increase in expenditures is due to the following:
--Reduce transfer of funds from the Home Rule Sales Tax Fund to the Capital Improvement Fund in the amount of $2,648,008 for the funding of the purchase of Main Street Triangle property.
--Increase transfer of funds from the Capital Improvement Fund to the Home Rule Sales Tax Fund in the amount of $2,351,992 for the funding of the purchase of Main Street Triangle property.
--Increase the Open Lands budget in the amount of $400,000 for the purchase of the Pebble Creek property. The funding source for this expenditure increase fund balance available in the Open Lands Fund.
--Decrease in personnel costs in the Civic Center Fund and Water and Sewer Fund in the amounts of $51,437 and $111,053, respectively.
--Line of credit interest for project funding in the Main Street Triangle area in the amount of $257,600. The funding source for this expenditure will be a loan to the Main Street Triangle TIF Fund from the Home Rule Sales Tax Fund. This loan will eventually be repaid as the TIF begins generating increment and/or as the project begins generating revenues that will be shared with the Village as per the terms of the Redevelopment Agreement.
--Redevelopment project costs in the Main Street Triangle area in the amount of $25,000,000. This expenditure will be funded by a line of credit established with Fifth Third Bank as previously approved by the Board and in accordance with the Board approved Redevelopment Agreement between the Village and Metra Triangle FC. This line of credit will be reflected as a liability of the Village; therefore, no offsetting revenue adjustment is required. The Redevelopment Agreement also provides the opportunity for the Village to “recoup” this expenditure thru the sharing of profits and value from the project.
On July 2, 2012, this item was reviewed and approved by the Finance Committee and referred to the Board for approval.
Financial Impact
The attached spreadsheet identifies the budget impact.
Recommended Action/Motion
I move to approve decreasing the FY2012 revenue budget by $24,573 and increasing the FY2012 expenditure budget by $25,470,536.