GENERAL GOVERNMENT > ADMINISTRATION
Township Manager: Gavin W. Morgan
Mission
The mission of Township Administration is to provide professional
public administration in a responsive, effective and efficient manner
utilizing available resources. The two main functions of Township
Administration are:
1.) Overseeing and administering the Township's financial structure
and policies.
2.) Administering the budgetary process.
Services
Administration is responsible for fiscal administration and budgeting
for the Township and employee benefit administration for Town and
General Assistance employees. Township Administration provides administrative
support and assistance to the Township Supervisor and Board of Trustees.
Special events such as the Township annual meeting, volunteer recognition
banquet, United Way events are
coordinated through Administration.
Reception Services at 105 S. Oak Park Avenue include:
- RTA Reduced Fare Program for Persons with Disabilities and Ride Free Program hours for processing applications are Wednesdays, Thursdays and Fridays from 9:00 a.m. until 2:00 p.m. Please call for application requirements.
- Temporary handicapped parking cards for Oak Park residents
- Taxi cab coupons for Oak Park seniors age 65 & over, and disabled residents
- Voter Registration
- Notary Public services
LEVY AND BUDGET PROCESS
One of the tools available to assist in fulfilling management's responsibilities to the public is the budget. It is the device that translates activities into dollars so that measurement, control and better management of resources can take place. The levy and budget process is used to set the stage for more effective service to the citizens.
LEVY AND BUDGET LAWS
The ability of the Township to raise money to defray expenses is found in the Illinois Statutes at 60 ILCS 1/80-40. The statute gives the Township the authority to levy on taxable property within the Township. Property taxes are a significant source of revenue for the Township. In 1995, however, the Illinois Legislature limited the Township’s ability to levy property taxes by passing the Property Tax Extension Limitation Act (PTELA). PTELA limits the increase in property tax that the Township may levy to 5% or the percentage increase in the Consumer Price Index during the 12 month calendar year preceding the levy year, whichever is less.
The Township Code 60 ILCS 1/80-60 provides that the annual budget and appropriation ordinance comply with the Illinois Municipal Budget Law.
The Illinois Municipal Budget Law (the "Law") 50 ILCS 330/3 provides that each governing body coming within the provisions of the Law adopt a combined annual budget and appropriation ordinance within or before the first quarter of each fiscal year. The Township’s fiscal year begins on April 1 and extends through March 31. In accordance with the Law, the Township may appropriate sufficient money to defray all necessary expenses and liabilities. The Law requires that the annual budget and appropriation ordinance specify the objects and purposes for which the appropriations are made and the amount appropriated for each object or purpose.
LEVY AND BUDGET CYCLE
The Township's annual levy and budget cycle is as follows:
- The annual process begins in August with the review and approval of the Levy and Budget Preparation Calendar.
- Preliminary discussion and development of the levy begins in August.
- Current fiscal year revenue and expenditures are re-estimated.
- Development of the Budget Manual begins in September.
- Preliminary levy calculations are prepared and submitted to the Township Board for consideration during the months of September through December.
- The Township Board of Trustees reviews strategic Planning Goals during the months September through January.
- The Township Board sets budget limits.
- The Budget Manual containing budget preparation instructions is finalized and distributed to department directors by the end of November.
- Department directors and division heads prepare budgets during the months of December through February.
- Department directors, division heads and members of the citizen advisory committees present proposed budgets to the Township Board during the months of January through March.
- A tentative budget combining all department and division budgets is prepared and presented to the Township Board.
- At least 30 days prior to the public hearing the tentative budget and appropriation ordinance is prepared.
- The Township Board adopts the final budget and appropriation ordinance i no later than June 30th.
BUDGET AMENDMENT
There are three ways the Township budget may be amended: (1) The electors may pass a referendum; (2) The Township Board may adopt a supplemental appropriation ordinance. The supplemental ordinance may not exceed the aggregate of any additional revenue available or the amount of fund balances available when the annual appropriation ordinance was adopted; or (3) The Township Board, with a two-thirds vote, may authorize transfers between line items within a department.
ACCOUNTING POLICIES
Oak Park Township operates under the Township Code 60 ILCS and the Revenue Code 35 ILCS of the Illinois Compiled Statutes (ILCS). The Township provides services as authorized by its charter including youth and senior services, mental health services, general assistance (locally administered welfare), property tax related matters and general administrative services.
The Township financial statements are prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units (hereinafter referred to as Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Township's accounting policies are described below.
FINANCIAL REPORTING ENTITY
The financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as:
1) Appointment of a voting majority of the component unit's board, and either
a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to, or impose a financial burden on the primary government; or
2) Fiscal dependency on the primary government.
The Township has a separately elected Board, the power to levy taxes, the authorization to expend funds, the responsibility to designate management, the ability to prepare and modify the annual budget and the authority to issue debt. Therefore, the Township is not included as a component unit of any other entity.
The Community Mental Health Board, Township of Oak Park is included in the financial statements of Oak Park Township based on the above criteria as a blended component unit since it is fiscally dependent on the primary government.
FUND ACCOUNTING
The accounts of the Township are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be set and the means by which spending activities are controlled. Funds are classified into the following categories: governmental, propriety and fiduciary.
Governmental funds are used to account for all or most of the Township’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of capital assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the Township not accounted for in some other fund. The Township has no capital projects or debt service funds.
The Township has no proprietary or fiduciary funds.
GOVERNMENT-WIDE AND
FUND FINANCIAL STATEMENTS
The Township's government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the Township. The effect of material inter-fund activity has been eliminated from the statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services.
The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statement.
The Township reports the following major governmental funds:
The General Fund accounts for the resources traditionally associated with the Township's operations that are not required legally or by sound financial management to be accounted for in another fund.
The Community Mental Health Fund accounts for the revenues and expenditures needed to finance the Community Mental Health Board’s support of services and programs in the areas of mental health, developmental disabilities and alcohol and substance abuse.
BASIS OF ACCOUNTING
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Township considers property taxes as available if they are due before the end of the year and collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred.
Charges for services and miscellaneous revenues (except investment income) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment income is susceptible to accrual and is recognized as revenues of the current period since recognition criteria indicated above are met.
CASH AND INVESTMENTS
The Township's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with maturities of three months or less from the date of acquisition.
Investments with maturity of one year or less when purchased and all non-negotiable certificates of deposit are stated at cost or amortized cost. Investments with maturity greater than one year when purchased, if any, are reported at fair value.
Under Illinois law and the Township's own investment policy, the Township is restricted to investing funds in specified types of investment instruments. The following generally represent the types of instruments allowable: Securities issued or guaranteed by the United States.
- Interest-bearing accounts of banks and savings and loans insured up to $100,000 by the Federal Deposit Insurance Corporation.
- Short-term obligations (less than 180 days) of U.S. corporations with assets over $500 million rated in the highest classification by at least two rating agencies.
- Insured accounts of an Illinois credit union chartered under United States or Illinois law.
- Money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these types of obligations.
- Illinois Funds.
RECEIVABLES
Receivables consist primarily of property taxes, intergovernmental and other miscellaneous amounts due to the Township.
COMPENSATED ABSENCES
Vacation time is earned by employees of the Township based on length of employment and employee status. Employees are generally required to use their vacation time with the exception that 40 hours can be carried to the following year. Any unused vacation time is paid to employees upon termination.
The Township also allows employees to accumulate compensatory time for later use (subject to an established maximum). Accumulated unused compensatory time is paid to the employee on termination.
The Township allows for carryover of unused sick time, subject to maximum limits. Upon termination employees are paid for unused sick time at a nominal rate.
CAPITAL ASSETS
Capital assets, which include property, plant and equipment are reported in the applicable governmental activities columns in the government-wide financial statements. Capital assets are defined by the Township as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. The minimum capitalization amount for individual equipment is $5000 and for buildings and improvements is $10,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives:
| Assets |
Years |
| Appliances |
5 |
| Tools |
5 |
| Equipment |
7 |
| Vehicles |
7 |
| Other Improv. |
20 |
| Buildings |
40 |
LONG-TERM OBLIGATIONS
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities.
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriations or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. In the government-wide financial statements, restricted net assets are legally restricted by outside parties for a specific purpose. Invested capital assets, net of related debt, represents the book value of capital assets less any long-term debt principal outstanding issued to construct capital assets.
