Title
Effective Operations:
ORDINANCES AUTHORIZING SUPPLEMENTAL APPROPRIATION AND TRANSFERS AMONG OPERATING FUNDS FOR FISCAL YEAR 2024
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the Board of Commissioners (the “Board”) of the Chicago Park District (“District”) adopt two ordinances. The first ordinance authorizes the supplemental appropriation as set forth below:
Supplemental Appropriation Ordinance
Schedule 1 - Assets & Liabilities
Corporate Fund
Other Revenues, as listed on Resources & Spending Summary $10,000,000.00
Schedule 2 - Appropriation
Corporate Fund
Personnel Services (class 610000) $10,000,000.00
This supplemental appropriation is authorized pursuant to Section 17(f) of the Chicago Park District, 70 ILCS 1505/0.01 et seq. (the “Act”).
The second ordinance authorizes the transfers among operating funds as set forth below:
Transfer Among Operating Funds Ordinance
Corporate Fund
Personnel Services (class 610000) $4,500,000.00
Materials & Supplies (class 620000) $(500,000.00)
Contractual Services (class 623000) $(3,250,000.00)
Program Expense (class 624000) $(300,000.00)
Other Expense (class 625000) $(450,000.00)
Special Recreation Activity Fund
Personnel Services (class 610000) $830,000.00
Other Expense (class 625000) $(830,000.00)
Liability Fund
Personnel Services (class 610000) $(1,310,000.00)
Contractual Services (class 623000) $275,000.00
Other Expense (class 625000) $1,035,000.00
This transfer among operating funds is authorized pursuant to Section 17(h)of the Act and Chapter XII, Section C. 10 of the Code of the Chicago Park District (the “Code”).
II. Explanation
The District’s Corporate Fund Personnel Services account class is expected to exceed its 2024 budgetary levels by $14,500,000. The primary reason for the overage in the District’s Corporate Fund Personnel Services account class is due to salary increases, additional pay elements higher than previously budgeted for, and higher than anticipated health benefit actuals. The Supplemental Appropriation Ordinance and the Transfer Among Operating Funds Ordinance will allow the District to account for this $14,500,000 in budgetary excess.
The Supplemental Appropriation Ordinance will allow the Corporate Fund Personnel Services account class to increase by $10,000,000. This additional $10,000,000 comes from the District’s managed assets revenue; primarily, from events at Soldier Field that had a better than anticipated year.
The 2024 appropriated budget authorized on December 13, 2023 of $574,490,037 will be increased by $10,000,000 to $584,490,037 as a result of the Supplemental Appropriation Ordinance.
Subsequently, the Transfer Among Operating Funds Ordinance will authorize transfers to three funds.
The first transfer allows $4,500,000 to be transferred from the Corporate Fund Material & Supplies, Contractual Services, Program Expense, and Other Expense account classes, which have an identified combined budgetary surplus, to the Corporate Fund Personnel Services account class to cover this previously mentioned budget excess.
The second transfer will authorize a transfer from the Special Recreation Fund Other Expense account class, which is expected to have a budgetary surplus by $830,000, to the District’s Special Activity Recreation Fund Personnel Services account class to a cover 2024 budgetary deficit in excess of $830,000. The primary reason for the overage in the Special Activity Recreation Fund’s Personnel Services account class is due to salary increases, additional pay elements higher than previously budgeted for, and higher than anticipated health benefit actuals.
The third transfer will authorize a transfer from the District’s Liability Fund Personnel Services account class, which is expected to have a budgetary surplus in excess of $1,310,000, to the District’s Liability Fund Contractual Services account class and the District’s Liability Fund Other Expense account class. The District Liability Fund Contractual Services account class is expected to exceed the 2024 budgeted levels by $275,000 due to greater than anticipated expenses related to insurance. The District Liability Fund Other Expense account class is expected to exceed budgeted levels by $1,035,000 due to a large settlement that occurred in fiscal year 2024 instead of 2023.
Together, the Supplemental Appropriation Ordinance and the Transfer Among Operating Funds Ordinance will allow for addressing District year-end obligations.
Adoption of these ordinances does not constitute automatic approval of specific expenditures of the funds. Expenditures will be approved in accordance with the provisions of the Code governing personnel, contracting, and purchasing.
III. Budget and Financial Information
Budget Classification:
Corporate Fund Personnel Services
Corporate Fund Materials & Supplies
Corporate Fund Contractual Services
Corporate Fund Program Expense
Corporate Fund Other Expense
Special Recreation Fund Personnel Services
Special Recreation Fund Other Expense
Liability Fund Personnel Services
Liability Fund Contractual Services
Liability Fund Other Expense
Fiscal Year: 2024