Title
ORDINANCE AUTHORIZING TRANSFERS AMONG OPERATING FUNDS FOR FISCAL YEAR 2022
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the Board of Commissioners (the “Board”) adopt an ordinance authorizing the transfer of funds in an amount not to exceed $6.5 million from the Corporate Fund Personnel Services account class to the Corporate Fund Contractual Services account class; an amount not to exceed $300,000 from the Special Recreation Fund Personnel Services account class to the Special Recreation Fund Contractual Services account class; and an amount not to exceed $600,000 from the Liability Fund Personnel Services account class to the Liability Fund Contractual Services account class and Liability Fund Other Expense account class. This transfer is authorized under Section 17(h) of the Chicago Park District Act, 70 ILCS 1505/0.01 et seq., and Chapter XII, Section C. 10 of the Code of the Chicago Park District.
II. Explanation
Pursuant to the Budget ordinance adopted on December 1, 2021 appropriating the 2022 budget, the Code of the Chicago Park District requires Board approval for transfers among appropriations. The District’s Corporate Fund Personnel Services account class is expected to have a budgetary surplus in excess of $6.5 million. The Corporate Fund Contractual Services account class is expected to exceed budgeted levels by $6.5 million. The primary reason for the overage in the Corporate Fund Contractual Services account class is greater than anticipated expenses related to Soldier Field and at the District’s harbors, in addition to various contractual expenses related to information technology, fleet services and the District’s other managed assets. At the time the fiscal year 2022 budget was crafted, expenditure estimates were formulated based on events anticipated to take place at Soldier Field. The number of events that ultimately took place during 2022 surpassed original expectations, and therefore the related expenses and revenues exceeded expectations as well. Although expenditures at Soldier Field are expected to exceed original estimates by approximately $3.0 million, the corresponding increase in revenue is expected to exceed original revenue projections by a similar amount.
The District’s Special Recreation Fund Personnel Services account class is expected to have a budgetary surplus in excess of $300,000. The Special Recreation Fund Contractual Services account class is expected to exceed budgeted levels by $300,000. The District’s Special Recreation unit has had difficulties hiring part-time Inclusion Aide positions in 2022, and as a result has had to use contract employees to continue to provide services to our Special Recreation community. As a result, the Personnel Services account class is under budget and the Contractual Services account class is over budget.
The District’s Liability Fund Personnel Services account class is expected to have a budgetary surplus in excess of $600,000. The Liability Fund Contractual Services account class is expected to exceed budgeted levels by $500,000 and the Liability Fund Other Expense account class is expected to exceed budgeted levels by $100,000. The primary reason for the overage in the Liability Fund Contractual Services account class is greater than anticipated expenses related to insurance and the primary reason for the overage in the Liability Fund Other Expense account class is greater than anticipated expenses related to judgments and settlements.
The 2022 appropriated budget authorized on December 14, 2022 of $510,949,937 will not be exceeded as a result of these transfers. These transfers will merely allow for addressing year-end obligations by transferring funding between account classes while staying within the overall fiscal year 2022 budget.
Adoption of this ordinance does not constitute automatic approval of specific expenditures of the funds. Expenditures will be approved in accordance with the provisions of the Park District Code governing personnel, contracting and purchasing.
III. Budget and Financial Information
Budget Classification:
Corporate Fund Personnel Services
Corporate Fund Contractual Services
Special Recreation Fund Personnel Services
Special Recreation Fund Contractual Services
Liability Fund Personnel Services
Liability Fund Contractual Services
Liability Fund Other Expense
Fiscal Year: 2022