CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance approving an amendment to the City of Naperville 2025 Annual Budget in the amount of $3,074,800 (requires six positive votes)
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City's finances are audited annually by an external company according to local code and state statute. As part of the audit process, staff closely examine all City funds for compliance with the annual budget. After all year-end expenditures, transfers, and accounting entries are completed, each fund is reviewed to ensure actual expenses did not exceed the approved budget.
During the 2025 audit process, 10 of the City's 35 funds were identified as being over budget. This is not an uncommon occurrence. Best practice and generally accepted accounting principles (GAAP) dictate that any fund exceeding budgeted expenses should be corrected through a budget amendment. This budget amendment is in compliance with GAAP and will allow for timely completion of the annual financial audit.
DISCUSSION:
The City's budget is organized by funds. Each fund is comprised of numerous expenditure accounts, and each of those accounts is assigned an annual budget. While individual accounts may go over budget by year-end, those are typically offset by other accounts being under budget, and no action is required. However, strict budgetary compliance is maintained at the fund level. Should any fund exceed its budgeted expenditures, in total, the budget should be amended.
The following table details the 10 funds that are identified as being over budget for 2025 and the recommended amended budget:
Fund
Increase/(Decrease)
Amendment Budget
Block 59 Business District Fund
$38,200
$538,200
Debt Service Fund
$1,692,300
$10,500,656
Downtown Parking Fund
$257,800
$719,564
Foreign Fire Insurance Tax Fund
$56,100
$532,200
Heinen's Business District
$5,500
$5,500
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