Naperville Park District 3 Year Financial Plan

Transcription

1 Naperville Park District 3 Year Financial Plan /14/2013 Includes all District Functions Except Debt

2 Naperville Park District 3 Year Financial Plan The National Advisory Council on State and Local Budgeting (NACSLB) recommends that governments establish a financial planning process that assesses the long term financial implications of current and proposed policies, programs and assumptions, as well as develops appropriate strategies to achieve its goals. The Naperville Park District is pleased to present our 3 Year Financial Plan. The Financial Plan is intended to serve as a tool, providing the Park Board of Commissioners and staff with the insight required to address issues impacting the District s financial condition. The plan consists of the following sections: Introduction Baseline 2013 Budget Forecast Summary Major Revenue Source Property Tax General Fund Operating Forecast Recreation Fund Forecast Golf Services Fund Forecast Capital Improvement Plan Other District Funds Summary Addendums Financial planning expands our awareness of potential problems and opportunities and of options for addressing them. The longterm revenue, expenditure and service implications of continuing or ending existing programs or adding new programs or facilities can be identified. The financial planning process helps shape decisions and permits necessary actions to take place in a timely and efficient manner. A financial plan does not state what is certain to happen. Rather it highlights significant issues or opportunities that must be addressed if the mission and goals are to be achieved and provides forecasts of expected results if certain actions are taken. 2 Naperville Park District

3 Naperville Park District 3 Year Financial Plan Introduction The Naperville Park District s Year Financial Plan is one part of the District s Master Plan that illustrates the organization s good stewardship of community resources while supporting continuing efforts to provide beautiful parks and facilities, affordable and engaging programs for all ages and abilities and host unique seasonal events. The District s perpetual focus to identify efficiencies coupled with continuous improvement has been the key to its success, particularly during the last several years of economic challenge. Additionally, sound financial practices, a continued competitive bidding climate and the pursuit of alternative revenue opportunities have kept the District in a financially healthy state. In 2008, the District s financial rating was upgraded by Moody s Investors Service to an Aaa the highest rating available. Since then, the District s exceptional financial status has been renewed at this level. These advantages have made it possible for the District to continue to renovate its facilities and further develop its programs and services for the community s benefit. All that said, the Naperville Park District s future is bright. However, our continued success is dependent upon our ability to do the following consistently and well: The Future of the Naperville Park District Our success hinges on our ability to do the following consistently and well: Maintain our relevance as a key provider of recreation and health and wellness solutions Remain reasonably priced and deliver an excellent value to residents Provide consistently great experiences to grow the District s long term customer base Expand our focus and increase our reach in the community 3 Naperville Park District

4 Baseline 2013 Budget Naperville Park District 3 Year Financial Plan The first year of the plan is based on the District s 2013 Budget approved on December 17, The District s annual budget includes all operating and capital needs for the District. The philosophy of the District s 2013 budget was based on the following objectives: Realize continuous improvement in efficiencies, practice conservative spending, perform a thorough review of line items and maintain program fee rates at an affordable level. Maintain a strong financial position to ensure the District s Aaa rating. Departmental budget requests were based on specific needs, thereby allowing the District to deliver the level of excellence expected by the community. Utilization of the District s tax levy to adequately fund operations, capital and special recreation needs. Hold recreation program fees and golf fees steady. Beach membership rates were increased slightly to offset increased water costs. Maintain a motivated and loyal workforce. Provide competitive salary and benefit package (this plan includes annual funding for a 2% merit pool and comprehensive health insurance coverage with affordable employee contributions). Continue to produce balanced budgets for the General, Recreation and Golf Funds. Forecast Summary Financial forecasts are the foundation for a long term financial plan. These forecasts provide the Board and staff with information they need to more efficiently determine future levels of service and methods of funding. This forecast of District revenues and expenditures includes Fiscal Years The forecast assumptions are based on recent trends and specific expectations. The following steps/philosophies were taken to develop the forecast percentages: Utilize a conservative (worst case) approach for revenue and expense forecasting. Utilize independent industry data to develop assumptions whenever possible. 4 Naperville Park District

5 Naperville Park District 3 Year Financial Plan Review departmental budgets to determine if the 2013 budget line items will change significantly. The golf operations 3 Year Plan was prepared on a line item basis. Consider past history (3 5 year average) when forecasting percentage increases/decreases in future plan years. Incorporate capital projects for years 2014 and 2015 driven by the Naperville Park District s Capital Projects Prioritization Policy. Incorporate the related maintenance and operating costs for any new facilities and parks in the capital plan that will be coming on line in 2014 and Assumption Highlights (see Addendum A for the Detailed Plan Assumption Analysis) Revenues Property tax projections are based on CPI increases (excluding new growth) and continued utilization of the District s Debt Service Extension Base. Charges for services for recreation programs were based on a 3 year average plus additional funds for new facilities in 2014 and A gradual increase in golf green fees has been proposed in 2014 and 2015 to offset rising operational expenses. The proposed 2014 rates are still below 2011 rates. The number of rounds are projected to remain at the current level of 77,000. Expenditures Expenditures that trend consistently were assigned a 1.7% and 1.5% inflationary increase for 2014 and Expenditures for golf operations were evaluated and forecasted on a line item basis. Merit pool of 2% was included for 2014 and Medical insurance premium increases of 10% were included for 2014 and Expenditure line items for operating departments expected to vary based on new facilities/parks and or price fluctuations (fertilizer) were adjusted accordingly. A weighted average percentage increase was calculated for major expense categories that included wages, supplies, contractual services and utilities. This calculation included additional funds to maintain and operate new facilities and parks. Capital projects included in the plan were identified as a result of implementing the Naperville Park District s Capital Projects Prioritization Policy. 5 Naperville Park District

6 Naperville Park District 3 Year Financial Plan Major Revenue Source Property Tax: What value do residents receive for their tax dollars? Taxes overall comprise about 50% of the District s revenues and are one of the most important funding sources for the District. For 2014 and 2015 property taxes are projected to increase 1.7% and 1.5% based on the projected Consumer Price Index. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Community College #502 Naperville Park District City of Naperville County School District The District receives about 5% or 5 cents on every dollar in property taxes paid Residents will pay an estimated $300 $320 per year through Parks, 70 Playgrounds 60+ Miles of Trails 78 Baseball Fields k 66 multi use Fields 34 Tennis Courts 25 Basketball Courts 7 Sand Volleyball Courts 2 Cricket Pitches 6 Ice Rinks 7 Sled Hills 2 Inline Hockey Rinks 3 Inline Skating/ Skateboarding Facilities 45 Picnic Shelters Free, annual events 6 Naperville Park District

7 General Fund Operating Forecast Naperville Park District 3 Year Financial Plan The general fund houses the support functions in the District that includes the Park Board, Administration, Finance, Human Resources, Information Technology, Planning, Fleet, Trades and Police. On an operational basis, General Fund revenues and expenditures are projected to remain fairly consistent. Property tax is the largest revenue source that supports the general/administrative functions of the District. The District can expect to maintain healthy fund balance reserves in the General Fund, which is vital to maintaining our Aaa Bond Rating. Barring any legislative changes to the District s taxing authority, General Fund revenues should remain stable and fairly predictable. Expenditures also trend fairly consistent; exceptions may include fuel and operating costs for technology. Surpluses of $36,900 and $29,600 are projected for year 2014 and 2015 respectively. $6,500,000 General Fund Revenues & Expenses There are additional costs built into the plan for new dollars allocated in Trades for parks and maintenance initiatives. $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000, Revenues Expenses 7 Naperville Park District

8 Naperville Park District 3 Year Financial Plan The General Fund s Operating Reserve Target is equivalent to 6 months of operating expenses. A minimal growth in fund balance is projected through year Maintaining fund balance amounts in excess of the reserve requirement is vital to maintaining the District s Aaa bond rating. In the event excess funds become available for General Fund operating needs, a transfer to the District s Capital program would occur. General Fund Fund Balance 5,250,000 4,250,000 3,250,000 2,250,000 1,250, , Fund Balance Reserve Target Fund Balance 4,613,175 4,663,447 4,715,256 4,776,781 4,813,652 4,843,250 Reserve Target 2,678,147 2,884,950 2,881,461 2,942,429 3,004,122 3,052,187 8 Naperville Park District

9 Naperville Park District 3 Year Financial Plan Naperville Park District General Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 4,450,593 4,613,175 4,663,446 4,715,256 4,776,781 4,813,652 Taxes 5,195,827 5,427,882 5,524,198 5,673,790 5,770,244 5,856,798 Rentals 7,583 9,000 10,282 7,500 7,628 7,742 Investment Income 60,753 42,406 25,181 20,700 20,907 21,116 Alternative Revenue 975 3,720 2,047 2,070 2,070 2,070 Miscellaneous Revenue 157, , , , , ,183 WDSRA Reimbursement 24,893 24,501 12,985 25,475 25,985 26,504 Other Financing Sources 71,800 77,384 79,755 71,664 73,097 74,559 Total Revenues $5,518,877 $5,820,171 $5,814,731 $5,946,382 $6,045,114 $6,133,972 Wages and Benefits 2,471,453 2,604,033 2,635,680 2,868,839 3,022,440 3,126,033 Supplies 395, , , , , ,767 Contractual Services 539, , , , , ,686 Utilities 68,503 76,807 80,566 80,770 83,500 86,339 Capital 1,135 1, ,016 2,056 2,097 Miscellaneous Expense 50,207 49,742 9,650 14,000 14,238 14,452 Transfers Out 1,830,000 1,946,000 1,950,000 1,700,000 1,635,000 1,600,000 Total Expenditures $5,356,295 $5,769,900 $5,762,921 $5,884,857 $6,008,243 $6,104,374 Surplus (Deficit) $162,582 $50,271 $51,810 $61,525 $36,871 $29,598 Ending Fund Balance $4,613,175 $4,663,446 $4,715,256 $4,776,781 $4,813,652 $4,843,250 Fund Balance Target $2,678,147 $2,884,950 $2,881,461 $2,942,429 $3,004,122 $3,052,187 9 Naperville Park District

10 Recreation Fund Forecast Naperville Park District 3 Year Financial Plan The Recreation Fund primarily accounts for recreation programs, park maintenance, marketing/sponsorship, community relations, recreation support, Carillon, Centennial Beach and Grill. Recreation program revenue (charges for services) accounts for approximately 50% of fund revenues. Over 50,000 participants register for Naperville Park District programs each year. The recreation fund is managed so that revenues exceed expenditures by a small margin. The net revenues from programs are designated to fund portions of the community relations and marketing budgets. The parks division operations are funded primarily through property taxes and a transfer from the General Fund. Surpluses of $35,000 and $32,000 have been projected for years 2014 and 2015 respectively. $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 Recreation Fund Revenues & Expenses The increase in revenue and expenses in 2014 and 2015 reflects the Knoch Knolls Nature Center and Southwest Community Park. There also will be an increase in field rental fees in 2014 based on the synthetic turf field planned to be up and running at Commissioners Park. The expense side will be impacted by maintenance costs related to new park amenities and facilities that will be completed in years See page 21 for a listing of new parks. $6,000, Revenues Expenditures 10 Naperville Park District

11 Naperville Park District 3 Year Financial Plan Charges for services (recreation program fees) represent 50% of the funding for the recreation fund. As noted earlier, the increase in 2014 and 2015 represents the new funds that will be generated from the Knoch Knolls Nature Center. 5,550,000 5,500,000 5,450,000 5,400,000 5,350,000 5,300,000 5,250,000 5,200,000 5,150,000 5,100,000 Charges for Services This funding source is tied to the type of program and the number of participants. This chart illustrates the strong foundation of the District s recreation programs. The decrease in 2012 is due primarily to the loss of high school summer athletic camps Individual budgets by are prepared on an annual basis for the core programs listed below. Sports Youth Camps Sports Adult Fitness/Indoor Aquatics Arts Active Adults/Seniors Youth, Teen & Family Special Events Early Childhood Trips 11 Naperville Park District

12 Naperville Park District 3 Year Financial Plan Recreation Fund reserves are forecasted to remain stable and exceed the established targets. As noted earlier, maintaining healthy reserves is vital to maintaining the District s Aaa bond rating. The Recreation Fund s Reserve Target is 50 percent of the annual tax levy. Recreation Fund Balance 2,650,000 2,050,000 1,450, , , Fund Balance Reserve Target Fund Balance 2,425,379 2,474,987 2,518,308 2,566,141 2,601,351 2,633,571 Reserve Target 1,417,656 1,476,983 1,494,807 1,559,000 1,585,503 1,609, Naperville Park District

13 Naperville Park District 3 Year Financial Plan Naperville Park District Recreation Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 2,298,120 2,425,380 2,474,987 2,518,308 2,566,141 2,601,351 Taxes 2,835,311 2,953,965 2,989,614 3,118,000 3,171,006 3,218,571 Investment Income 44,499 24,497 19,327 17,600 17,776 17,954 Charges for Services 5,351,491 5,461,625 5,271,049 5,363,322 5,443,772 5,525,428 Sales 87, , , , , ,500 Rentals 285, , , , , ,694 Alternative Revenue 105,985 77,997 70,796 65,810 65,810 65,810 Miscellaneous Revenue 679, , , , , ,944 WDSRA Reimbursement 11,476 14,694 23,170 33,941 34,620 35,312 Other Financing Sources 167, , , ,400 1,232,928 1,579,487 Total Revenues $9,567,528 $10,123,827 $10,212,750 $10,970,494 $11,434,447 $11,915,700 Wages and Benefits 5,807,216 6,261,982 6,320,234 6,618,743 6,976,159 7,293,000 Supplies 847, , ,659 1,022,995 1,039,977 1,094,991 Contractual Services 2,282,467 2,338,373 2,318,329 2,635,771 2,699,557 2,763,536 Utilities 383, , , , , ,709 Capital 16,252 32,800 9,754 21,425 21,789 22,116 Miscellaneous Expense 103, , , , , ,128 Transfers Out Total Expenditures $9,440,268 $10,074,220 $10,169,429 $10,922,661 $11,399,237 $11,883,480 Surplus (Deficit) $127,260 $49,607 $43,321 $47,833 $35,210 $32,220 Ending Fund Balance $2,425,380 $2,474,987 $2,518,308 $2,566,141 $2,601,351 $2,633,571 Fund Balance Target $1,417,656 $1,476,983 $1,494,807 $1,559,000 $1,585,503 $1,609, Naperville Park District

14 Naperville Park District 3 Year Financial Plan Golf Fund Forecast The Naperville Park District currently operates two, 18 hole municipal golf facilities: Springbrook and Naperbrook. Each facility offers a different golfing experience for players of all ages and abilities. One of the goals of the Golf Department is to provide challenging, yet accessible and enjoyable golfing experiences to the residents of Naperville as well as to our nonresident guests at an affordable price. Our guiding principles drive everything that we do and assist in making decisions related to golf. In June 2012, the Park Board held a retreat to discuss the Need and Demand, Identity and Structure, and Management of golf operations in the future. Given the challenges of the golf industry in recent years, our golf operation s tight budget and the deferral of capital spending in prior years, Springbrook and Naperbrook will receive District capital funds to enable both courses to make facility improvements beginning in This accounts for the large increase in revenues and expenditures from 2012 through Combined for both courses, surpluses of $69,000 and $43,000 have been projected for years 2014 and 2015 respectively. The four main principles customer service, financial stability, public access and effective operations allow staff to focus its efforts and resources in the areas that are most important to golfers. 4,400,000 4,300,000 4,200,000 4,100,000 4,000,000 3,900,000 3,800,000 3,700,000 3,600,000 3,500,000 3,400,000 3,300,000 Golf Services Revenues & Expenses Revenues Expenditures 14 Naperville Park District

15 Naperville Park District 3 Year Financial Plan Golf fund reserves are forecasted to grow and exceed the established targets. Golf s minimum reserve target is 3 months of operating expenses plus a 25% contingency. The goal, as noted below on the orange line is to have $1,000,000 in fund balance to cover golf s debt service payment in the event of a catastrophic event. As noted earlier, maintaining healthy reserves is vital to maintaining the District s Aaa bond rating. 1,400,000 1,200,000 1,000, , , , ,000 0 Fund Balance Reserve Target 2010 Golf Fund Balance Fund Balance 819, , ,006 1,089,160 1,158,472 1,201,014 Reserve Target 600, , , , , ,000 The reserve target of $600,000 is the minimum amount. The goal (donated by orange highlight) is to maintain a $1,000,000 in reserves. 15 Naperville Park District

16 Naperville Park District 3 Year Financial Plan Naperville Park District Golf Services Forecast Golf Services Actual Actual Actual Budget Forecast Forecast 1 Beg Fund Balance $843,247 $990,006 $1,089,160 $1,158,472 Investment Income 4,041 4,358 4,559 3,500 3,536 3,570 Charges for Services 3,066,552 2,769,799 2,897,691 2,891,100 2,970,859 3,030,668 Sales 712, , , , , ,880 Rental Income 81,438 91, , , , ,800 Alternative Revenue 13,400 13,700 14,700 15,800 25,200 26,000 Miscellaneous 66, , ,318 84,553 86,413 89,759 2 Other Financing Sources 241, , ,375 Total Revenue $3,944,396 $3,694,064 $3,929,677 $4,104,253 $4,262,078 $4,340,052 Wages & Benefits 1,814,871 1,726,768 1,629,800 1,773,879 1,787,361 1,832,476 Supplies 340, , , , , ,545 Contractual Services 668, , , , , ,045 Utilities 86,684 88,503 63,804 90,870 92,860 94,877 Capital Projects 62,994 6, , , , ,875 Miscellaneous 71,133 70,700 75,940 77,446 78,995 80,574 Debt Service 694, , , , , ,118 Other Financing Uses Total Expenditures $3,738,254 $3,689,163 $3,782,919 $4,005,099 $4,192,766 $4,297,510 Surplus/(Deficit) $206,142 $4,902 $146,759 $99,154 $69,312 $42,542 Ending Fund Balance $990,006 $1,089,160 $1,158,472 $1,201,014 Fund Balance Target $600,000 $600,000 $600,000 $600, The beginning fund balance in 2012 represents current assets less current liabilities at 12/31/11 Represents transfer in to fund capital projects 16 Naperville Park District

17 Naperville Park District 3 Year Financial Plan Springbrook Located in west central Naperville and adjacent to the DuPage County Forest Preserve s Dragon Lake, the Springbrook golf facility commands some of the finest views of Naperville s open space and trails. The facility built in 1974, features a challenging 18 hole championship golf course, a 28 stall natural turf driving range, two practice putting greens and a short game practice green with bunkers. Its beautiful, mature and lush foliage and trees complement the manicured greens, tees and fairways. Combined with its exceptional course design, golfers of all skill levels return time and again to play. Springbrook Golf Course has been recognized by Golf Digest as one of the Top Places to Play and hole #10 made West Suburban Living Magazine s Dream 19. Deficits of $16,000 and $35,000 have been projected for years 2014 and 2015 respectively. The deficits projected for Springbrook are a result of large debt service payments that will continue until ,500,000 2,400,000 2,300,000 2,200,000 Springbrook Revenues & Expenses The annual number of golf rounds is projected to remain at 40,000 through For 2013 green fee rates were held flat at 2012 levels. Modest fee increases are planned for 2014 and ,100,000 2,000,000 1,900, Revenues Expenditures 17 Naperville Park District

18 Naperville Park District 3 Year Financial Plan Naperville Park District Golf Services Springbrook Forecast Springbrook Actual Actual Actual Budget Forecast Forecast Investment Income 2,020 2,179 2,279 1,750 1,768 1,785 Charges for Services 1,696,279 1,552,819 1,628,955 1,612,000 1,659,663 1,687,326 Sales 401, , , , , ,980 Rental Income 47,959 58,288 65,169 64,600 63,400 63,400 Alternative Revenue 6,700 6,800 7,351 8,400 12,800 13,200 Miscellaneous 38,984 72,620 78,117 48,846 50,661 52,513 Other Financing Sources 140, , ,375 Total Revenue $2,193,065 $2,100,682 $2,263,691 $2,338,596 $2,397,292 $2,411,579 Wages & Benefits 940, , , , , ,386 Supplies 175, , , , , ,480 Contractual Services 371, , , , , ,686 Utilities 31,956 33,618 30,093 34,985 35,757 36,537 Capital Projects 62,994 6,629 18, , , ,875 Miscellaneous 35,566 35,350 37,970 38,723 39,498 40,287 Debt Service 573, , , , , ,368 Other Financing Uses Total Expenditures $2,190,084 $2,210,536 $2,148,658 $2,326,500 $2,413,284 $2,446,619 Surplus/(Deficit) $2,981 ($109,853) $115,033 $12,096 ($15,992) ($35,040) 18 Naperville Park District

19 Naperville Park District 3 Year Financial Plan Naperbrook Located in northwest unincorporated Plainfield, scenic Naperbrook Golf Course is a links style course, carved out of good Illinois farmland and opened for play in It features rolling hills, native prairie grasses and ten ponds throughout the 6,755 yard, par 72 challenge with four sets of tees, large greens, one double green, hidden bunkers and wide fairways. Additional amenities include a ten acre driving range. Naperbrook Golf Course has been recognized by Golf Digest as one of the Top Places to Play. Surpluses of $85,000 and $78,000 have been projected for years 2014 and 2015 respectively. $2,000,000 $1,500,000 Naperbrook Revenues & Expenses The annual number of golf rounds is projected to remain at 37,000 through For 2013 green fee rates were held flat at 2012 levels. Modest fee increases are planned for 2014 and $1,000,000 $500,000 $ Revenues Expenditures 19 Naperville Park District

20 Naperville Park District 3 Year Financial Plan Naperville Park District Golf Services Naperbrook Forecast Naperbrook Actual Actual Actual Budget Forecast Forecast Investment Income 2,020 2,179 2,279 1,750 1,768 1,785 Charges for Services 1,370,273 1,216,981 1,268,736 1,279,100 1,311,196 1,343,342 Sales 310, , , , , ,900 Rental Income 33,479 32,905 34,925 37,700 38,050 38,400 Alternative Revenue 6,700 6,900 7,350 7,400 12,400 12,800 Miscellaneous 27,910 47,038 53,201 35,707 35,752 37,246 Other Financing Sources 101, , ,000 Total Revenue $1,751,331 $1,593,382 $1,665,986 $1,765,657 $1,864,786 $1,928,473 Wages & Benefits 874, , , , , ,090 Supplies 165, , , , , ,065 Contractual Services 297, , , , , ,359 Utilities 54,728 54,885 33,711 55,885 57,103 58,340 Capital Projects 153, , , ,000 Miscellaneous 35,566 35,350 37,970 38,723 39,497 40,287 Debt Service 121, , , , , ,750 Other Financing Uses Total Expenditures $1,548,171 $1,478,627 $1,634,261 $1,678,599 $1,779,482 $1,850,891 Surplus/(Deficit) $203,161 $114,755 $31,725 $87,058 $85,304 $77, Naperville Park District

21 Capital Improvements Plan Naperville Park District 3 Year Financial Plan The District has a long term capital spending plan that spans a 10 year period. Projects slated are driven by the Naperville Park District Capital Projects Prioritization Policy approved by the Board on May 12, The purpose of the Capital Projects Prioritization Policy is to establish an evaluation process for capital projects that is linked to the Park District s core values. Capital projects include: 1) repair/replacement of existing facilities; and 2) acquisition/construction of new facilities, either to extend existing services or develop new services. Below is an excerpt of the policy that directly relates to the creation of the 3 Year Financial Plan document as follows: During the annual Budget Development Process, a 3 Year Budget will be formulated to serve as a financial analysis highlighting the relationship between planned capital improvements and related operations/maintenance costs and recreation programming revenue/expenses. There are several new parks/amenities that have associated operational and maintenance costs that have been built into this plan and impact the General and Recreation Funds: 2014 Description 2015 Description Country Lakes Park New Baseball/Soccer Fields, Parking Lot Knoch Knolls Nature Center and Site Improvements (entire year of operations) Kingshill Park Basketball Court Knoch Park Central Maintenance Facility River Run Park Basketball Court SW Community Park Park Development (summer/fall 2015) Knoch Knolls Nature Center and Site Improvements (Summer 2014) 21 Naperville Park District

22 Naperville Park District 3 Year Financial Plan The reduction in fund balance coincides with the District s capital plan. Fund balance for capital can fluctuate significantly based on the projects programmed in any given year. The increase in fund balance from 2011 to 2012 reflects the $10 million bond issue for capital improvements, specifically for indoor space. The facility that was originally planned for by the District did not materialize. However, the District continues to evaluate opportunities to fill the demand for indoor space needs. The amount of funds in the Capital fund balance provides the District with the flexibility to act quickly and react to new opportunities as they arise. 30,000,000 Capital Fund Balance 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Fund Balance 10,967,794 24,629,432 25,651,462 24,049,943 17,254,604 10,764, Naperville Park District

23 Naperville Park District 3 Year Financial Plan With a 10 year capital outlook, the District has time to plan for funding while also maintaining flexibility to take advantage of unique opportunities as they may arise. This can be accomplished through the variety of funding sources the District has designated for Capital Spending that mainly include: Property Taxes, Bond Proceeds and Transfers from the General Operating Fund, Grants, Special Recreation Funding, Cash In Lieu funds and Investment Income. In 2011 the District issued $10M in bond proceeds for capital improvements. $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Capital Funding Sources $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Capital Project Uses Major initiatives in 2014 and 2015 include the Knoch Knolls Nature Center, development of the Central Maintenance Facility and development of Southwest Community Park. See Addendum B for a detailed list of capital projects slated for years Naperville Park District

24 Naperville Park District 3 Year Financial Plan Naperville Park District Capital Funding Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 11,646,402 10,967,794 24,629,430 25,651,462 24,049,943 17,336,344 Taxes 4,629,741 4,832,164 4,915,994 5,062,009 5,000,000 5,000,000 Rentals 2,145 2,566 2,566 2,566 2,500 2,500 Investment Income 146,935 82, ,846 75,900 76,659 77,426 Alternative Revenue 238,069 1,086, , , ,740 5,740 Miscellaneous Revenue 68, ,375 12,546 WDSRA Reimbursement 823,327 2,055, ,387 1,054, ,180 1,176,350 Other Financing Sources 6,373,221 24,862,665 1,626,899 3,100, , ,000 Total Revenues $12,281,913 $33,091,578 $7,710,679 $9,794,475 $6,667,079 $6,362,016 Capital 9,936,009 12,475,654 5,497,305 10,203,212 12,203,165 11,964,945 Debt Service 1,007,653 1,359,288 1,191,342 1,192,782 1,177, ,363 Other Financing Uses 2,016,859 5,595,000 Total Expenditures $12,960,521 $19,429,942 $6,688,647 $11,395,994 $13,380,678 $12,896,308 Surplus (Deficit) ($678,608) $13,661,636 $1,022,032 ($1,601,519) ($6,713,599) ($6,534,292) Ending Fund Balance $10,967,794 $24,629,430 $25,651,462 $24,049,943 $17,336,344 $10,802, Naperville Park District

25 Naperville Park District 3 Year Financial Plan Other District Funds FICA IMRF Audit Liability Special Recreation Cash In Lieu 25 Naperville Park District

26 Naperville Park District 3 Year Financial Plan Naperville Park District FICA Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 288, , , , , ,409 Taxes 539, , , , , ,000 Investment Income 3,743 2,210 1,693 1,500 1,515 1,530 Miscellaneous Revenue 6,369 9,554 9,652 4,800 4,800 4,896 Other Financing Sources 30,700 30,700 37,800 37,800 38,556 39,327 Total Revenues $579,932 $541,778 $599,086 $594,100 $594,871 $595,753 Wages and Benefits 533, , , , , ,068 Total Expenditures $533,779 $565,172 $568,438 $571,000 $582,420 $594,068 Surplus (Deficit) $46,153 ($23,394) $30,648 $23,100 $12,451 $1,685 Ending Fund Balance $334,604 $311,210 $341,858 $364,958 $377,409 $379,094 Fund Balance Target $266,890 $282,586 $284,219 $285,500 $291,210 $297,034 This fund is established to account for revenues that are from a specific property tax levy and expenditures for the employer s portion of social security tax currently at 7.65%. 26 Naperville Park District

27 Naperville Park District 3 Year Financial Plan Naperville Park District IMRF Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 367, , , , , ,749 Taxes 568, , , , , ,336 Investment Income 4,876 2,775 2,290 2,100 2,121 2,142 Miscellaneous Revenue 6,700 7,761 7,725 4,700 4,794 4,890 Total Revenues $579,828 $613,867 $619,590 $626,800 $669,075 $692,368 Wages and Benefits 566, , , , , ,391 Total Expenditures $566,445 $597,959 $623,928 $651,500 $667,873 $682,391 Surplus (Deficit) $13,383 $15,908 ($4,338) ($24,700) $1,202 $9,977 Ending Fund Balance $380,677 $396,585 $392,247 $367,547 $368,749 $378,726 Fund Balance Target $283,223 $298,980 $311,964 $325,750 $333,937 $341,196 This fund is established to account for revenues that are from a specific property tax levy and expenditures for employer pension contributions. These contributions are subsequently paid to the state sponsored Illinois Municipal Retirement Fund, a multipleemployer, public employee retirement system that acts as a common investment and administrative agent for over 2,800 local governments and school districts in Illinois. The District s projected employer rates for 2014 and 2015 of 11.16% and 11.11% respectively, remain under the current statewide average of 12%. 27 Naperville Park District

28 Naperville Park District 3 Year Financial Plan Naperville Park District Audit Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 26,932 32,760 24,797 20,924 18,324 19,954 Taxes 21,866 6,929 13,258 15,000 20,000 20,000 Investment Income Miscellaneous Revenue 72 4 Other Financing Sources 3,000 3,000 1,400 1,500 1,530 1,561 Total Revenues $25,231 $10,083 $14,749 $16,600 $21,630 $21,663 Contractual Services 19,403 18,046 18,623 19,200 20,000 20,900 Total Expenditures $19,403 $18,046 $18,623 $19,200 $20,000 $20,900 Surplus (Deficit) $5,828 ($7,963) ($3,873) ($2,600) $1,630 $763 Ending Fund Balance $32,760 $24,797 $20,924 $18,324 $19,954 $20,717 Fund Balance Target $9,702 $9,023 $9,311 $9,600 $10,000 $10,450 This fund is established to account for revenues from a specific property tax levy and expenditures for the District s annual financial audit. The contract with the District s current auditors, Lauterbach & Amen, LLP extends through 2014 with the contracted audit fees as noted above. Estimated fees totaling $20,900 have been included for Naperville Park District

29 Naperville Park District 3 Year Financial Plan Naperville Park District Liability Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 269, , , , , ,333 Taxes 437, , , , , ,246 Investment Income 5,026 2,851 2,011 1,800 1,818 1,854 Miscellaneous Revenue 3,806 4,093 4,089 3,000 3,000 3,060 Other Financing Sources 4,800 4,800 5,500 5,700 25,814 26,330 Total Revenues $450,759 $365,418 $369,393 $470,500 $495,232 $500,490 Wages and Benefits 203, , , , , ,489 Supplies Contractual Services 208, , , , , ,850 Total Expenditures $412,401 $374,879 $413,971 $462,272 $478,238 $494,859 Surplus (Deficit) $38,358 ($9,461) ($44,578) $8,228 $16,994 $5,631 Ending Fund Balance $308,150 $298,689 $254,111 $262,339 $279,333 $284,964 Fund Balance Target $206,201 $187,440 $206,986 $231,136 $239,119 $247,430 This fund is established to account for revenues that are from a specific property tax levy and expenditures for liability/property insurance for the District. The District has been a member of the Park District Risk Management Agency (PDRMA) since PDRMA has over 140 members who have formed an insurance pool in order to obtain better control of the insurance market and risk management. PDRMA provides comprehensive coverage to all members for property, boiler and machinery, crime and lost revenues; for general liability, auto liability and public officials errors and omissions; workers compensation and employer s liability, as well as volunteer medical accident coverage. 29 Naperville Park District

30 Naperville Park District 3 Year Financial Plan Naperville Park District WDSRA Fund Forecast Actual Actual Actual Budget Forecast Forecast Beginning Fund Balance 70,316 70,316 70,316 70,316 70,316 70,316 Taxes 2,586,256 2,773,897 2,650,328 2,663,982 2,337,561 2,492,098 Total Revenues $2,586,256 $2,773,897 $2,650,328 $2,663,982 $2,337,561 $2,492,098 Contractual Services 1,430,153 1,471,676 1,217,923 1,391,912 1,251,826 1,251,601 Capital 1,156,103 1,302,221 1,432,405 1,272,070 1,085,735 1,240,497 Total Expenditures $2,586,256 $2,773,897 $2,650,328 $2,663,982 $2,337,561 $2,492,098 Surplus (Deficit) $0 $0 $0 $0 $0 $0 Ending Fund Balance $70,316 $70,316 $70,316 $70,316 $70,316 $70,316 Fund Balance Target $0 $0 $0 $0 $0 $0 The District is a member of the Western DuPage Special Recreation Association (WDSRA). WDSRA provides inclusion services for those in the community with special needs. The District also has ADA related capital improvements that are paid for through this fund. As part of the 3 Year Capital Plan, ADA qualified capital improvements are determined. 30 Naperville Park District

31 Naperville Park District 3 Year Financial Plan Naperville Park District Cash in Lieu Fund Forecast Actual Actual Actaul Budget Forecast Forecast Beginning Fund Balance 10,126,651 8,901,205 2,814,094 3,207,384 3,227,584 3,247,984 Investment Income 127,364 59,892 19,865 20,200 20,400 20,600 Alternative Revenue 147, , ,425 Total Revenues $274,554 $286,889 $393,290 $20,200 $20,400 $20,600 Transfers Out 1,500,000 6,374,000 Total Expenditures $1,500,000 $6,374,000 $0 $0 $0 $0 Surplus (Deficit) ($1,225,446) ($6,087,111) $393,290 $20,200 $20,400 $20,600 Ending Fund Balance $8,901,205 $2,814,094 $3,207,384 $3,227,584 $3,247,984 $3,268,584 Fund Balance Target $0 $0 $0 $0 $0 $0 The Naperville Municipal Ordinance 7 3 5, the Dedication of Park Lands and School Sites or for Payments or Fees in Lieu of, requires developers to provide land for park and recreational purposes and land for school sites, to serve the immediate and future needs of the residents of the development, or cash contribution in lieu of actual land dedication, or a combination of both, based on the recommendation of the public body which will be the recipient of the contribution, but subject to final determination of the City Council. The ordinance is based on a standard of 8.6 acres of park land per 1,000 population. In August 2007, the City increased the Fair Market Value referenced in the ordinance to $323,600 per acre. Based on the economic slowdown, the District took the most conservative approach and assumed zero Cash In Lieu receipts for Naperville Park District

32 Naperville Park District 3 Year Financial Plan Summary The District remains in a strong financial position with stable revenue sources to fund operations and capital. This includes operating and maintenance costs for the new facilities and amenities included in plan years See Addendum C for a Summary Fund Balance Rollfoward. In 2013, the District s Aaa Bond Rating was reconfirmed for the District s entire outstanding debt. The District is prepared to maintain its Aaa Bond Rating for the foreseeable future. For operational purposes, except for impacts of the Affordable Care Act, revenue and expenditure trends are fairly predictable. Major programs/initiatives are supported by stable revenue sources. The District can continue to provide recreational opportunities at affordable rates. Funding for the District s Capital Plan continues to remain strong with a diversity of funding sources. There are long term challenges to capital funding as noted below. Alternative revenue will continue to be a focus within the framework of the District s Non Tax Revenue Plan that includes seeking donations through the Naperville Parks Foundation. The District places an emphasis on maintaining a qualified, loyal and motivated workforce through compensation packages, educational opportunities and recognition initiatives. Future Challenges/Risks include: Indoor recreation space needs Sportsman s Park Site Remediation The Naperville Park District, in cooperation with the City of Naperville, enrolled Sportsman s Park in the Illinois Environmental Protection Agency (IEPA) Site Remediation Program (SRP) to secure IEPA oversight of an environmental assessment and remediation of the Sportsman's Park facility. The objective of these activities is to obtain a No Further Remediation (NFR) determination from the IEPA and to remove certain regulations, conditions and restrictions presently imposed upon the facility in order to continue the current uses and programs at Sportsman s Park, including trapshooting. A total of $830,000 is allocated in the Capital budget to begin implementing the multi year Remedial Action Plan (RAP) at Sportsman s Park in 2013 however; the total remediation costs are unknown at this time. 32 Naperville Park District

33 Naperville Park District 3 Year Financial Plan Several of our major facilities including Centennial Beach and Springbrook/Naperbrook Golf Courses can be significantly impacted by weather and affect projected revenues. Economic condition of State of Illinois and the legislator s ability to impact the District s financial condition. Impacts of the Affordable Care Act. Availability of grants through the State of Illinois and at the Federal level are on the decline. Capital Funding Cash In Lieu (Land Cash Donation Ordinance) funding will be depleted by the time the City approaches buildout. Currently there is no substitute for this revenue source. Funding for capital through the general tax levy will need to be reduced as operating costs increase. Pro forma for planned facilities Revenues could come in lower than projected and or operating expenditures could come in higher. Competition for patrons of recreation services. 33 Naperville Park District

34 Naperville Park District 3 Year Financial Plan Addendums Addendum A District 3 Year Plan Assumption Detail Addendum B Golf 3 Year Plan Assumption Detail Addendum C 3 Year Capital Plan Addendum D Fund Balance Rollforward 34 Naperville Park District

35 Addendum A 3-YEAR PLAN ASSUMPTIONS General and Recreation Funds (Excludes Golf Operations) Presented to Finance Committee January 18, 2013 Approved by Park District Board January 30, 2013

36 In December 2009, the Board approved the Naperville Park District Strategic Plan. Financial Goal 2 of the plan is to Maintain the financial health of the Park District, with one of the objectives being the development of a 3 year financial plan that reflects operating and capital needs. Consistent with the prior year, staff is presenting this assumption overview as a first step in developing the 3 year financial plan ( ). The 2013 approved budget will serve as the basis for year one of the plan. The following is an overview of the methodologies and direction taken to create assumptions for years 2014 & 2015: Utilize a conservative (worst case approach) for revenue and expense forecasting Utilize independent industry data to develop assumptions whenever possible Review departmental budgets to determine if the 2013 budget line items will significantly change Use past history (3 5 year average) to forecast percentage increases/decreases for some projections Incorporate capital projects for years 2014 and 2015 driven by the Naperville Park District s Capital Projects Prioritization Policy Incorporate the related maintenance and operating costs for any new facilities and parks in the capital plan that would be coming on line in 2014 and 2015 (See Attachment A page 5) What did we do? Revenues Built assumptions for each major category in plan (see assumption table on page 2) Expenditures Expenditures that trend consistently, were assigned a 1.7% inflationary increase for 2014 and 1.5% for 2015 Merit pool of 2% was included for 2014 and 2015 Expenditure line items for operating departments expected to vary based on new facilities/parks and/or price fluctuations were adjusted accordingly A weighted average percentage increase was calculated for major expense categories that included wages, supplies, contractual services and utilities. This calculation included additional funds to maintain and operate facilities and (see Attachment B pages 6 22 for weighted average worksheets) Capital projects included in the plan were identified as a result of implementing the Naperville Park District s Capital Projects Prioritization Policy Page 1

37 Revenues Description 1 Taxes 3.7% 1.7% 1.5% Property & Personnel Replacement 2 Charges for Service 2.1% 1.5% 1.5% Program Revenue, Beach Admissions 3 Misc Revenue 4.0% 0.0% 0.0% Variety See below 4 Sales 7.0% 1.7% 1.5% Concession, Merchandise, Event Ticket Sales 5 Rentals 20.1% 17.4% 0.0% Facility Rentals, Tournament Income, Athletic Fields Rental 6 Investment Income 17.1% 1.0% 1.0% CD s money market and fixed income securities ASSUMPTION TABLE: REVENUES: See Attachment B page 7 for Revenue Worksheet Note : 2013 Percent changes based on comparison of 2012 budgeted amounts 1. Taxes 2013 Budget $19.9M The Consumer Price Index (CPI) used to project the 2013 tax levy budget was 3.0% (December 2011 CPI). The final CPI used for the 2014 fiscal year tax levy was 1.7%. * Industry Source Bureau of Labor Statistics (See Attachment C page 23). The CPI impacts the District s tax levy and has varied over the past several years but has remained under 5%. For 2015, 1.5% is a reasonable estimate. To remain conservative new construction amounts were not included in the projections. * Industry Source Eric Anderson, Managing Director BMO Capital Markets GKST Inc. 2. Charges for Services: Recreation 2013 Budget $5.4M Includes revenues from all of the District s recreation programs and Centennial Beach. The 1.5% increase in year 2014 and 2015 reflects revenues generated from the Knoch Knolls Nature Center. The Center is programmed to be open half a year in 2014 and for an entire year in Miscellaneous Revenue 2013 Budget $920k Contains a variety of revenues sources that mainly include; employee insurance contributions, rain barrel program, bid package revenue, reimbursement income (affiliate lights, Riverwalk, Carillon) sales tax revenue, commission revenue, cell tower revenue, parking permit revenue, and ticket revenues. While some smaller sources within this category are stable such as employee insurance contributions, cell tower and ticket revenues are unpredictable. After review of the 2013 budget, miscellaneous revenues will be held flat for forecasting purposes. 4. Sales 2013 Budget $302k Includes merchandise sales, concessions, brochure advertising and event ticket sales. The trend of sales revenues has varied based on the facilities on line throughout the year. The increase for years 2014 and 2015 corresponds to an increase in operating costs. 5. Rental Income 2013 Budget $401k A fairly stable revenue source with a core base of tournaments and field rentals that occur each year. Large increases will be realized in the year a new facility is brought on board. The 17.4% increase in 2014 reflects rental income from the new synthetic turf field planned for Commissioners Park. 6. Investment Income 2013 Budget $143k The primary objective of the District s investment activities in priority order are safety, liquidity and yield. Based on the District s Investment Policy and allowable investments outlined in the Illinois Public Funds Investment Act, interest earnings are expected to remain low for several years. The District primarily invests in cds, money market Page 2

38 accounts and a small portfolio in fixed income securities. The 17% increase in 2013 is the result of earnings from increased investible funds on hand. 7. OTHER REVENUE SOURCES WDSRA Reimbursement, Alternative revenue, Transfers and Other Financing Sources will be based on dollar projections WDSRA Reimbursement 2013 Budget $1.1M The special recreation reimbursement will be calculated on a dollar basis based driven by the qualified capital projects that are planned for development in years Transfers In Capital 2013 Budget $800k If the general fund has favorable operating results at the end of the calendar year, excess funds are designated for capital improvements. Transfer in Recreation 2013 Budget $900k The general fund transfers monies to cover a portion of park maintenance costs. Alternative Revenues 2013 Budget $568k This revenue source is comprised of grants, donations, cash in lieu funds and sponsorships. Based on the volatile nature of grant income that comprises the majority of alternative revenues, an estimated dollar amount versus a percentage change will be used to forecast years Other Financing Sources 2013 Budget $3.2M In 2013 $2.3 million in Bond Proceeds are proposed to be issued. The District does not anticipate issuing debt in 2014 or ASSUMPTION TABLE: EXPENDITURES: Expenditures Description 1 Wages Regular 2.0% 4.5% 2.5% Full & part time employees benefit eligible 2 Wages Short Term 4.7% 4.7% 4.4% Seasonal employees 3 Employee Insurance 8.6% 10.0% 10.0% PDRMA Insurance pool 4 Other Benefits 7.2% 1.7% 1.5% Payroll Taxes, Uniforms, Training, Conferences 5 Retirement 7.9% 1.5% 1.5% IMRF Pension Plan 6 Supplies 7.5% 1.7 % 4.2% Variety of supplies ranging from program supplies to fuel 7 Contractual Services 4.4% 2.6% 2.3% Variety 8 Utilities 16.9% 6.5% 7.7% Telephone, Electric, Water and Gas 9 Misc. Expense 7.9% 1.7% 1.5% Admin Overhead, Contingency, Investment Fees 1. Wages Regular 2013 Budget$ 4.9M Includes full and part time employees that are group plan benefit eligible. Years 2014 and 2015 include a 2% merit pool. Additional dollars in 2014 include funds for the compensation study, project manager wages for a full year and wages for the Nature Center Environmental Program Manager. (See pages 8 10). 2. Short Term 2013 Budget $2.9M Includes seasonal employees. The 4.7% increase in 2013 includes a 2% merit pool increase and funds for new maintenance initiatives such as the mulch program. A 2% merit increase has been programmed for 2013 and New dollars in 2014 and 2015 include labor for new parks (the major impact being Southwest Community Park) and staffing for the Nature Center. (See pages 11 13). Page 3

39 3. Employee Insurance 2013 Budget $1.3M The District is a member of PDRMA Health which provides pooled health insurance. The pooling and risk sharing have kept insurance increases for the District below the national average of 10% 15%. The increase from the 2012 to 2013 budget includes a 7.0% premium increase and census changes. For both 2014 and 2015 a 10% general premium rate increase was assumed. Financial impacts of the Affordable Health Care Act will be built into the model at a later date. *Industry Source Laura Ganschow, Health Program Manager Park District Risk Management Agency 4. Other Benefits 2013 Budget $1.0M Includes FICA, Medicare, unemployment, workers comp, training and other employee benefits. The 7.2% increase from 2012 to 2013 is primarily based on a worker s comp and unemployment insurance and an increased training budget. 5 Retirement 2013 Budget $652k Funding for the District s IMRF Pension Fund. The IMRF plan is required by state statue for Illinois governmental agencies that include park districts. Each member s rate is individually calculated and is impacted by investment returns and census changes. Rate estimates have been provided by IMRF based on the District s experience and anticipated investment returns. The 7.9% increase from 2012 to 2013 is based on a rate increase and increased short term labor costs for those positions that are IMRF eligible. Based on anticipated investment returns and the new tier structure, the District s rate for 2014 and 2015 is expected to decrease. The 2013 rate is 11.22%, 2014 is estimated at 11.16% and 2015 estimated at 11.11%. The net percentage increase of 1.5% above results from a higher wage base (2% merit pool) *Industry Source Dick DeCleene Chief Financial Officer Illinois Municipal Retirement Fund 6 Supplies 2013 Budget $1.5M Supplies can vary greatly depending on the year s initiatives, commodity costs and new facilities and parks. The 1.7% increase in 2014 includes supplies for various new parks and the Knoch Knolls Nature Center for a half year. In 2015, the 4.2% increase includes a half of year supplies for Southwest Community Park and an entire year of supplies for the nature center (See pages 14 16). 7 Contractual Services 2013 Budget $3.5M The increases in 2014 and 2015 reflect operating costs for tree maintenance services, Southwest Community Park and the Knoch Knolls Nature Center (See pages 17 19). 8 Utilities 2013 Budget $603k Utilities include electric, natural gas and water. The increase in utility costs are based mainly on increased water costs. The District anticipates a 15% increase in 2014 and another 15% in (See pages 20 22). 9 Miscellaneous Expense 2013 Budget 125k Includes an amount for administrative overhead, contingencies and investment fees. The 7.9% increase is mainly comprised of an increase in investment fees as the District s fixed income portfolio grows. Other Expenditures include spending for Capital projects and Transfers Out will be based on dollar projections. Page 4

40 Park Amenities and Facilities that Trigger New Operating Dollars ATTACHMENT A Operating costs have been included in the plan to account for new park amenities and facilities as follows: 2014 Country Lakes Park New Baseball/Soccer Fields, Parking Lot, and Access Drive (pending agreement with School District 204) Kingshill Park Basketball Court River Run Park Basketball Court Knoch Knolls Nature Center and Site Improvements (summer 2014) 2015 Knoch Knolls Nature Center and Site Improvements (entire year of operations) Knoch Park Central Maintenance Facility Development (summer 2015) Southwest Community Park Park Development (summer/fall 2015) Notes: 1) Operating costs reflect system wide park initiatives that include additional plant protectants, tree/turf services and additional fertilizer 2) The above lists of improvements proposed for 2014 and 2015 are subject to change based on the annual capital projects review process incorporated within the Naperville Park District s Capital Projects Prioritization Policy Page 5

41 ATTACHMENT B 3 Year Plan Assumptions Weighted Average Worksheets Page 6

42 Naperville Park District Assumptions 3 Year Plan District Revenues Total Account % New Final % New Final Number Name Budget Increase Adjusted Facilities 2014 Rate Increase Adjusted Facilities 2015 Rate 2100 Taxes 19,891, % 20,230,010 20,230, % 1.5% 20,533,460 20,533, % 2200 Investment Income 143, % 145, , % 1.0% 146, , % 2300 Charges for Services 5,363, % 5,363,322 80,500 5,443, % 0.0% 5,443,822 80,500 5,524, % 2400 Sales 301, % 306, , % 1.5% 311, , % 2500 Rentals 400, % 400,776 69, , % 0.0% 470, , % 2600 Alternative Revenue 567, % 567, , % 0.0% 567, , % 2700 Miscellaneous Revenue 860, % 860, , % 0.0% 860, , % 2703 WDSRA Reimbursement 1,113, % 1,113, ,113, % 0.0% 1,113,988 1,113, % 2800 Other Financing Sources 4,193, % 4,193,064 4,193, % 0.0% 4,193,064 4,193, % 32,836,301 33,181, ,682 33,331,710 33,641,213 80,500 33,721,713 Page 7

43 Naperville Park District Assumptions 3 Year Plan District Regular Wages Regular Wages Weighted Weighted Dollars Dollars Percentage Average Dollars Percentage Average Fund 1 1,903,972 2,000, % 1.96% 2,040, % 0.78% Fund 2 3,035,165 3,160, % 2.53% 3,246, % 1.67% 4,939,137 5,160, % 5,287, % 4.49% 2.45% Page 8

44 Naperville Park District Assumptions 3 Year Plan Fund 1 Wages % 2% Account % Comp Project Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Study Manager 2013 Rate Rate Increase Adjusted Trades 2014 Rate Rate 3100 Wages - Regular 1,877,602 2% 1,915,154 22,950 35,700 1,973,804 5% 5.05% 2% 2,013,280 2,013,280 2% 1.97% 3101 Wages - Regular OT 26,370 2% 26,897 26,897 2% 0.03% 2% 27,435 27,435 2% 0.03% 1,903,972 1,942,051 22,950 35,700 2,000, % 2,040,715 2,040, % 5.08% 2.00% Page 9

45 Naperville Park District Assumptions 3 Year Plan Fund 2 Regular Wages % 2% Account % Comp Knoch Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Study Knolls 2014 Rate Rate Increase Adjusted Swest 2015 Rate Rate 3100 Wages - Regular 2,987,130 2% 3,046,873 18,360 45,900 3,111,133 4% 4.09% 2% 3,173,356 22,568 3,195,924 3% 2.68% 3101 Wages - Regular OT 48,035 2% 48,996 48,996 2% 0.03% 2% 49, ,476 3% 0.05% 3,035,165 3,095,869 18,360 45,900 3,160, % 3,223,332 23,068 3,246, % 4.12% 2.73% Page 10

46 Naperville Park District Assumptions 3 Year Plan District Short term Wages Short term Wages Weighted Weighted Dollars Dollars Percentage Average Dollars Percentage Average Fund 1 349, , % 0.28% 368, % 0.34% Fund 2 2,642,626 2,775, % 4.44% 2,903, % 4.08% 2,992,329 3,133, % 3,272, % 4.72% 4.42% Page 11

47 Naperville Park District Assumptions 3 Year Plan Fund 1 Wages % 2% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Parks 2014 Rate Rate Increase Adjusted Parks 2015 Rate Rate 3102 Wages - Short-term 338,265 2% 345,030 1, ,363 2% 2.32% 2% 353,290 3, ,733 3% 2.90% 3103 Wages - Short-term OT 11,438 2% 11,667 11,667 2% 0.07% 2% 11, ,000 3% 0.09% 349, ,697 1, , % 365, , % 2.38% 2.99% Page 12

48 Naperville Park District Assumptions 3 Year Plan Fund 2 Short term Wages % 2% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Facilities 2014 Rate Rate Increase Adjusted Facilities 2015 Rate Rate 3102 Wages - Short-term 2,530, % 2,591,255 70,269 2,661,524 5% 4.94% 2% 2,714,754 72,339 2,787,093 5% 4.52% 3103 Wages - Short-term OT 111, % 113, ,918 2% 0.08% 2% 116, ,196 2% 0.08% 2,642,626 2,705,173 70,269 2,775, % 2,830,950 72,339 2,903, % 5.03% 4.61% Page 13

49 Naperville Park District Assumptions 3 Year Plan District Supplies Weighted Weighted Dollars Dollars Percentage Average Dollars Percentage Average Fund 1 533, , % 0.64% 555, % 0.75% Fund 2 1,022,960 1,039, % 1.09% 1,094, % 3.47% 1,556,885 1,583, % 1,650, % 1.73% 4.22% Page 14

50 Naperville Park District Assumptions 3 Year Plan Fund 1 Supplies % 1.5% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Parks 2014 Rate Rate Increase Adjusted Facilities 2015 Rate Rate 3200 Office Supplies 10, % 10,526 10,526 2% 0.03% 1.5% 10,684 10,684 2% 0.03% 3201 Tech parts/supplies 8, % 9,051 9,051 2% 0.03% 1.5% 9,187 9,187 2% 0.03% 3202 Training Supplies 6, % 7,043 7,043 2% 0.02% 1.5% 7,149 7,149 2% 0.02% 3203 Program Supplies 5, % 5,304 5,304 2% 0.02% 2.0% 5,410 5,410 2% 0.02% 3204 Janitorial Supplies 2, % 2,339 2,339 2% 0.01% 1.5% 2,374 2,374 1% 0.01% 3205 Concession Supplies 1.7% 0% 0.00% 1.5% 0% 0.00% 3207 Books & Publications 1, % 1,475 1,475 2% 0.00% 1.5% 1,497 1,497 1% 0.00% 3208 Meeting Supplies 3, % 3,204 3,204 2% 0.01% 1.5% 3,252 3,252 1% 0.01% 3209 Safety Supplies 14, % 14,238 14,238 2% 0.04% 1.5% 14, ,552 2% 0.06% 3210 Staff Supplies 3, % 3,865 3,865 2% 0.01% 1.5% 3, ,948 2% 0.02% 3211 Repair Parts 99, % 101, ,192 2% 0.32% 1.5% 102, ,760 2% 0.29% 3212 Motor Fuel 216, % 220, ,282 2% 0.69% 1.5% 223,586 1, ,336 2% 0.93% 3213 Electrical Supplies 19, % 19,323 19,323 2% 0.06% 1.5% 19, ,863 3% 0.10% 3214 Plumbing/Irrigation Supplies 15, % 15, ,505 3% 0.09% 1.5% 15, ,838 2% 0.06% 3215 Building Materials & Supplies 18, % 18,306 18,306 2% 0.06% 1.5% 18, ,781 3% 0.09% 3216 Aquatic/Pond Supplies 1, % 1,220 1,220 2% 0.00% 1.5% 1, ,263 4% 0.01% 3217 Plant Protectents 1.7% 0% 0.00% 1.5% 0% 0.00% 3218 Printer/Copier Supplies 5, % 5,594 5,594 2% 0.02% 1.5% 5,678 5,678 2% 0.02% 3219 Horticultural Supplies 1.7% 0% 0.00% 1.5% 0% 0.00% 3220 Horticulture Material 1.7% 0% 0.00% 1.5% 0% 0.00% 3221 Athletic field Supplies 1.7% 0% 0.00% 00% 1.5% 0% 0.00% 00% 3222 Oils/Lubricants 12, % 12,407 12,407 2% 0.04% 1.5% 12,593 12,593 1% 0.03% 3223 Grass Seed 1.7% 0% 0.00% 1.5% 0% 0.00% 3224 Sod 1.7% 0% 0.00% 1.5% 0% 0.00% 3225 Fertilizer 1.7% 0% 0.00% 1.5% 0% 0.00% 3226 Sand % % 0.00% 1.5% % 0.00% 3227 Top Soil 1.7% 0% 0.00% 1.5% 0% 0.00% 3228 Small Tools & Equipment 14, % 14,747 14,747 2% 0.05% 1.5% 14,968 14,968 1% 0.04% 3229 Paving/Masonry Supplies 7, % 7, ,319 5% 0.06% 1.5% 7, ,529 3% 0.04% 3231 HVAC Supplies 7, % 7,119 7,119 2% 0.02% 1.5% 7, ,326 3% 0.04% 3232 Playground Parts/Supplies 38, % 39,256 39,256 2% 0.12% 1.5% 39, ,650 4% 0.26% 3233 Sign Supplies 9, % 9,153 9,153 2% 0.03% 1.5% 9, ,340 2% 0.03% 3236 Park Amenities 3, % 3, ,465 16% 0.09% 1.5% 3, ,530 2% 0.01% 3237 Building Amenities 1, % 1,017 1,017 2% 0.00% 1.5% 1, ,082 6% 0.01% 3296 Facility Allowance - Supplies 1.7% 0% 0.00% 1.5% 0% 0.00% 3297 Park Allowance - Supplies 1.7% 0% 0.00% 1.5% 0% 0.00% 3299 Miscellaneous Supplies 10, % 10,628 10,628 2% 0.03% 1.5% 10, ,837 2% 0.04% 533, , , % 552,069 3, , % 1.87% 2.18% Page 15

51 Naperville Park District Assumptions 3 Year Plan Fund 2 Supplies % 1.5% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Facilities 2014 Rate Rate Increase Adjusted Facilities 2015 Rate Rate 3200 Office Supplies 14, % 15, ,761 7% 0.10% 1.5% 15, ,747 6% 0.09% 3202 Training Supplies % % 0.00% 1.5% % 0.00% 3203 Program Supplies 355, % 335,177 15, ,177 2% 0.56% 1.5% 355,430 15, ,530 6% 1.96% 3204 Janitorial Supplies 63, % 64,355 2,326 66,681 5% 0.33% 1.5% 67,681 3,165 70,846 6% 0.40% 3205 Concession Supplies 2, % 2,644 2,644 2% 0.00% 1.5% 2,684 2,684 2% 0.00% 3207 Books & Publications 2, % 3,020 3,020 2% 0.00% 1.5% 3,065 3,065 1% 0.00% 3208 Meeting Supplies 3, % 3,763 3,763 2% 0.01% 1.5% 3,819 3,819 1% 0.01% 3209 Safety Supplies 33, % 34,056 34,056 2% 0.06% 1.5% 34, ,617 2% 0.05% 3210 Staff Supplies 6, % 6,748 6,748 2% 0.01% 1.5% 6, ,899 2% 0.01% 3211 Repair Parts 21, % 22,232 22,232 2% 0.04% 1.5% 22,565 22,565 1% 0.03% 3213 Electrical Supplies 4, % 4,221 4,221 2% 0.01% 1.5% 4,284 4,284 1% 0.01% 3214 Plumbing/Irrigation Supplies 13, % 13,526 2,250 15,776 19% 0.24% 1.5% 16,013 3,300 19,313 22% 0.34% 3215 Building Materials & Supplies 16, % 17,009 17,009 2% 0.03% 1.5% 17,264 17,264 1% 0.02% 3216 Aquatic/Pond Supplies 35, % 36,567 36,567 2% 0.07% 2.0% 37, ,548 3% 0.09% 3217 Plant Protectents 39, % 39, ,071 2% 0.09% 1.5% 40, ,372 3% 0.13% 3218 Printer/Copier Supplies 13, % 13,730 13,730 2% 0.02% 1.5% 13,936 13,936 2% 0.02% 3219 Horticultural Supplies 25, % 26,361 2,200 28,561 10% 0.26% 1.5% 28,989 3,500 32,489 14% 0.38% 3220 Horticulture Material 45, % 46, ,423 2% 0.10% 1.5% 47, ,619 3% 0.12% 3221 Athletic field Supplies 68, % 69, ,957 2% 0.16% 1.5% 71,006 6,698 77,704 11% 0.74% 3222 Oils/Lubricants 1, % 1,627 1,627 2% 0.00% 1.5% 1, ,676 3% 0.00% 3223 Grass Seed 43, % 44,519 1,500 46,019 5% 0.22% 1.5% 46,709 1,750 48,459 5% 0.23% 3224 Sod 2, % 2,034 2,034 2% 0.00% 1.5% 2,065 2,065 2% 0.00% 3225 Fertilizer 137, % 140, ,089 2% 0.32% 1.5% 143,205 2, ,955 3% 0.47% 3226 Sand 5, % 5,136 5,136 2% 0.01% 1.5% 5,213 5,213 1% 0.01% 3227 Top Soil 4, % 4,826 4,826 2% 0.01% 1.5% 4, ,998 4% 0.02% 3228 Small Tools & Equipment 34, % 35,020 35,020 2% 0.06% 1.5% 35,545 35,545 1% 0.05% 3229 Paving/Masonry Supplies 5, % 5,288 5,288 2% 0.01% 1.5% 5,367 5,367 1% 0.01% 3231 HVAC Supplies % % 0.05% 1.5% ,163 78% 0.05% 3233 Sign Supplies % % 0.00% 1.5% % 0.00% 3236 Park Amenities 17, % 17,543 17,543 2% 0.03% 1.5% 17,806 17,806 1% 0.03% 3237 Building Amenities % % 0.00% 1.5% % 0.00% 3299 Miscellaneous Supplies 2, % 2,288 2,288 2% 0.00% 1.5% 2,322 2,322 1% 0.00% 1,022,960 1,013,661 26,326 1,039, % 1,055,765 39,188 1,094, % 1.66% 5.29% Page 16

52 Naperville Park District Assumptions 3 Year Plan District Contractual Services Weighted Weighted Dollars Dollars Percentage Average Dollars Percentage Average Fund 1 685, , % 0.66% 719, % 0.37% Fund 2 2,624,307 2,687, % 1.92% 2,751, % 1.88% 3,309,614 3,394, % 3,471, % 2.58% 2.25% Page 17

53 Naperville Park District Assumptions 3 Year Plan Fund 1 Contractual Services % 1.5% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Parks/IT 2014 Rate Rate Increase Adjusted Swest 2015 Rate Rate 3300 Mobile Communication 13, % 13,439 13,439 2% 0.03% 1.5% 13,641 13,641 2% 0.03% 3301 Dues & Memberships 25, % 26,334 26,334 2% 0.06% 1.5% 26,729 26,729 2% 0.06% 3302 Printer/Copier Services 11, % 11,206 11,206 2% 0.03% 1.5% 11,374 11,374 1% 0.02% 3303 Postage 10, % 10,780 10,780 2% 0.03% 1.5% 10,942 10,942 2% 0.02% 3307 Legal Services 167, % 170, ,348 2% 0.42% 1.5% 172, ,903 1% 0.36% 3308 Legal Notices/Publications 1, % 1,017 1,017 2% 0.00% 1.5% 1,032 1,032 1% 0.00% 3311 Alarm Services & Repairs 36, % 36,612 36,612 2% 0.09% 1.5% 37,161 37,161 1% 0.08% 3314 Tech Support/Consulting 10, % 10,170 10,000 20, % 1.48% 1.5% 20,473 20,473 2% 0.04% 3319 Staff Recruitment 6, % 6,102 6,102 2% 0.01% 1.5% 6,194 6,194 2% 0.01% 3320 Physicals/Employee Tests 24, % 24,717 24,717 2% 0.06% 1.5% 25,088 25,088 2% 0.05% 3321 Promotion % % 0.00% 1.5% % 0.00% 3322 Printing 2, % 2,034 2,034 2% 0.01% 1.5% 2,065 2,065 2% 0.00% 3323 Community/Public Relations 10, % 10,851 10,851 2% 0.03% 1.5% 11,014 11,014 2% 0.02% 3328 Licenses/Easements % % 0.00% 1.5% % 0.00% 3330 Permit/Registration Fees % % 0.00% 1.5% % 0.00% 3331 Equipment Rental 5, % 5,187 5,187 2% 0.01% 1.5% 5,265 5,265 2% 0.01% 3336 Consulting Services (Other) 35, % 36,205 36,205 2% 0.09% 1.5% 36,748 36,748 1% 0.08% 3338 Payroll Processing 46, % 46,782 46,782 2% 0.11% 1.5% 47,484 47,484 2% 0.10% 3340 Inspections/Certifications 10, % 11,060 11,060 2% 0.03% 1.5% 11, ,426 3% 0.05% 3342 Tech support Contracts 1.7% 0% 0.00% 1.5% 0% 0.00% 3343 Vandalism Repairs 132, % 134, ,516 2% 0.33% 1.5% 136, ,784 2% 0.32% 3344 Vehicle R&M 14, % 14,747 14,747 2% 0.04% 1.5% 14,968 14,968 1% 0.03% 3345 Equipment R&M 14, % 14,238 14,238 2% 0.03% 1.5% 14, ,952 5% 0.10% 3346 Building R&M 16, % 16,272 16,272 2% 0.04% 1.5% 16, ,016 5% 0.11% 3347 Computer R&M 15, % 15,255 15,255 2% 0.04% 1.5% 15,484 15,484 2% 0.03% 3348 Data/Communications Lines R& 10, % 10,170 10,170 2% 0.02% 1.5% 10,323 10,323 2% 0.02% 3349 Fencing R&M 5, % 5,085 5,085 2% 0.01% 1.5% 5, ,286 4% 0.03% 3350 Bridge R&M 1, % 1,017 1,017 2% 0.00% 1.5% 1,032 1,032 1% 0.00% 3399 Miscellaneous Services 60, % 61, ,039 2% 0.17% 1.5% 62, ,370 2% 0.19% 685, ,959 10, , % 717,719 1, , % 4, % 1.78% Page 18

54 Naperville Park District Assumptions 3 Year Plan Fund 2 Contractual Services % 1.5% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Facilities 2014 Rate Rate Increase Adjusted Facilities 2015 Rate Rate 3300 Mobile Communication 27, % 27,658 1,020 28,678 5% 0.06% 1.5% 29,108 29,108 1% 0.02% 3301 Dues & Memberships 11, % 11, ,981 6% 0.03% 1.5% 12,161 12,161 2% 0.01% 3302 Printer/Copier Services 22, % 22, ,863 4% 0.03% 1.5% 23, ,656 3% 0.03% 3303 Postage 15, % 16, ,428 3% 0.02% 1.5% 16, ,874 3% 0.02% 3304 Pest Control 23, % 23,894 23,894 2% 0.02% 1.5% 24,252 24,252 1% 0.01% 3305 Turf Maintenance Services 83, % 84,527 84,527 2% 0.05% 1.5% 85,795 85,795 2% 0.05% 3308 Legal Notices/Publications % % 0.00% 1.5% % 0.00% 3311 Alarm Services & Repairs 4, % 4, ,077 13% 0.02% 1.5% 5, ,653 11% 0.02% 3312 Janitorial Services 3, % 3,560 5,700 9, % 0.22% 1.5% 9,399 5,700 15,099 63% 0.22% 3313 Refuse Services 68, % 69,590 69,590 2% 0.04% 1.5% 70,634 70,634 2% 0.04% 3314 Tech Support/Consulting 2, % 2, ,843 14% 0.01% 1.5% 2, ,186 12% 0.01% 3315 Program Transportation 49, % 50,062 50,062 2% 0.03% 1.5% 50,813 50,813 2% 0.03% 3316 Program Entertainment 49, % 50,384 50,384 2% 0.03% 1.5% 51,140 51,140 2% 0.03% 3317 Program Contractual Services 851, % 854, ,783 0% 0.11% 2.0% 871, ,879 2% 0.64% 3318 Advertising 51, % 52,214 52,214 2% 0.03% 1.5% 52,997 52,997 1% 0.03% 3319 Staff Recruitment 1, % 1,017 1,017 2% 0.00% 1.5% 1,032 1,032 1% 0.00% 3320 Physicals/Employee Tests 10, % 10,348 10,348 2% 0.01% 1.5% 10,503 10,503 1% 0.01% 3321 Promotion 58, % 60,023 9,900 69,923 19% 0.42% 2.0% 71,321 3,300 74,621 7% 0.17% 3322 Printing 212, % 216, ,006 2% 0.14% 1.5% 219, ,246 2% 0.12% 3323 Community/Public Relations 3, % 3,560 3,560 2% 0.00% 1.5% 3,613 3,613 1% 0.00% 3324 Scholarship Program 33, % 28,387 28,387 14% 0.18% 1.5% 28,813 28,813 2% 0.02% 3325 Tournament Prizes 4, % 4,312 4,312 2% 0.00% 1.5% 4,377 4,377 2% 0.00% 3327 Charge Card Fees 106, % 1.7% 107, ,944 2% 0.07% 07% 15% 1.5% 109, ,563 1% 0.06% 06% 3329 Sales Tax Expense 18, % 18,404 18,404 2% 0.01% 1.5% 18,680 18,680 1% 0.01% 3330 Permit/Registration Fees 3, % 3,576 3,576 2% 0.00% 1.5% 3,630 3,630 2% 0.00% 3331 Equipment Rental 7, % 7,272 7,272 2% 0.00% 1.5% 7,381 7,381 1% 0.00% 3332 Building Rental 586, % 598, ,441 2% 0.45% 2.0% 610, ,410 2% 0.45% 3333 Retail Purchases % % 0.00% 1.5% % 0.00% 3335 Concession Purchases 82, % 84,186 84,186 2% 0.06% 2.0% 85,870 85,870 2% 0.06% 3336 Consulting Services (Other) 4, % 4,577 4,577 2% 0.00% 1.5% 4,646 4,646 2% 0.00% 3340 Inspections/Certifications 2, % 2,827 2,827 2% 0.00% 1.5% 2,869 2,869 1% 0.00% 3341 Tree Maintenance Services 67, % 69,154 15,000 84,154 24% 0.62% 1.5% 85,416 5,000 90,416 7% 0.23% 3342 Tech support Contracts 60, % 61,715 61,715 2% 0.04% 1.5% 62,641 62,641 2% 0.03% 3343 Vandalism Repairs 3, % 4,017 4,017 2% 0.00% 1.5% 4,077 4,077 1% 0.00% 3345 Equipment R&M 17, % 17,645 17,645 2% 0.01% 1.5% 17,910 17,910 2% 0.01% 3346 Building R&M 4, % 4,322 4,322 2% 0.00% 1.5% 4,387 4,387 2% 0.00% 3349 Fencing R&M % % 0.00% 1.5% % 0.00% 3351 Other Repairs 1.7% 0% 0.00% 1.5% 0% 0.00% 3353 Media Services 23, % 23,544 23,544 2% 0.02% 1.5% 23,897 23,897 1% 0.01% 3399 Miscellaneous Services 46, % 47,640 47,640 2% 0.03% 1.5% 48,355 48,355 2% 0.03% 2,624,307 2,654,256 2,687, % 2,736,181 15,450 2,751, % 2.42% 2.37% Page 19

55 Naperville Park District Assumptions 3 Year Plan District Utilities Weighted Weighted Dollars Dollars Percentage Average Dollars Percentage Average Fund 1 80,770 83, % 0.45% 86, % 0.44% Fund 2 523, , % 6.06% 607, % 7.28% 604, , % 693, % 6.51% 7.72% Page 20

56 Naperville Park District Assumptions 3 Year Plan Fund 1 Utilities % 1.5% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Trades 2014 Rate Rate Increase Adjusted Trades 2015 Rate Rate 3400 Communication Lines 36, % 36,887 36,887 2% 0.76% 1.5% 37,440 37,440 1% 0.66% 3402 Electricity 28, % 29,290 29,290 2% 0.61% 1.5% 29,729 29,729 1% 0.53% 3403 Water 10, % 11,730 11,730 15% 1.89% 15.0% 13,490 13,490 15% 2.11% 3404 Gas 5, % 5,594 5,594 2% 0.12% 1.5% 5,678 5,678 2% 0.10% 80,770 83,501 83, % 86,337 86, % 3.38% 3.40% Page 21

57 Naperville Park District Assumptions 3 Year Plan Fund 2 Utilities % 1.5% Account % New Final Weighted % New Final Weighted Number Name Budget Increase Adjusted Facilities 2014 Rate Rate Increase Adjusted Facilities 2015 Rate Rate 3400 Communication Lines 61, % 63, ,754 3% 0.34% 1.5% 64, ,430 3% 0.30% 3402 Electricity 269, % 273,573 5, ,353 4% 1.98% 1.5% 283,543 12, ,573 6% 2.90% 3403 Water 141, % 162,987 2, ,347 17% 4.51% 15.0% 190,149 3, ,509 17% 5.03% 3404 Gas 50, % 51,765 51,765 2% 0.17% 1.5% 52,541 52,541 1% 0.14% 523, ,359 8, , % 590,943 16, , % 6.99% 8.36% Page 22

58 Bureau of Labor Statistics ATTACHMENT C Consumer Price Index - All Urban Consumers 12-Month Percent Change Series Id: CUUR0000SA0 Not Seasonally Adjusted Area: U.S. city average Item: All items Base Period: =100 Years: 2002 to 2012 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annua HALF1 HALF Source: Bureau of Labor Statistics Generated on: January 17, 2013 (01:31:30 PM) Page 23

59 Addendum B 3-YEAR PLAN ASSUMPTIONS Golf Operations Presented to Golf Committee January 21, 2013 Approved by Park District Board January 30, 2013

60 In December 2009, the Board approved the Naperville Park District Strategic Plan. Financial Goal 2 of the plan is to Maintain the financial health of the Park District with one of the objectives being the development of a 3 year financial plan that reflects operating and capital needs. Consistent with the prior year, staff is presenting this assumption overview for golf operations as a first step in developing the 3 year financial plan ( ). The 2013 approved budget will serve as the basis for year one of the plan. The following is an overview of the methodologies and direction taken to create assumptions for years 2014 & 2015: Utilize a conservative approach for revenue and expense forecasting Utilize independent industry data and trends to develop assumptions whenever possible Perform a line item review of revenues and expenditures If applicable use past history to forecast percentage increases/decreases in projections Golf functions such as cart rentals, driving range, concessions, merchandise sales and tournaments should continue to generate net income to golf operations. What did we do? Revenues Built assumptions for each major category in plan (see assumption table on page 2). Expenditures Expenditure line items were individually reviewed reflecting increases/decreases Merit pool of 2% was included for 2014 and 2015 Insurance and pension costs were consistent with the District plan o 10.0% medical insurance o 1.5% pension increase 2014 and 1.5% in 2015 This assumption packet focuses on revenues and operating expenses. Golf s Capital Plan will be reviewed under a separate document Golf debt service will be included in the 3 year plan See page 8 Attachment C Page 1

61 ASSUMPTION TABLE: REVENUES: The percent changes below are based on changes in revenue by category from year to year. The 2013 percent changes based on a comparison to the 2012 budget. Revenues Description 1 Golf Services Income 5.8% 3.1% 3.0% Greens fees 2 Cart Income 0.4% 0.0% 0.0% Golf cart rentals 3 Concessions 1.3% 1.4% 0.0% Food and beverage sales 4 Driving Range 0.0% 0.0% 0.0% Range fees 5 Merchandise 6.0% 0.0% 0.0% Pro shop sales 6 Golf Programs 1.3% 11.0% 0.9% Lessons, S.R.T.T. lottery, CDGA handicaps, Sims 7 Membership Sales 20.1% 2.3% 2.0% Brooks Links/Brooks Advantage members 8 Miscellaneous 10.9% 2.2% 3.9% Sales tax, outings, school reimbursements 9 Tournament Income 18.8% 0.0% 0.0% 15 per year held between 2 courses 10 Alternative Income 6.0% 59.5% 3.2% Sponsorships 1. Golf Services Income 2013 Budget $1.9M Includes revenues from greens fees. While golf is projected to have a positive financial result in 2012, the 2012 greens fees budget was not attainable. The 2013 budget reflects the number of rounds based on 2012 estimates (40,000 Springbrook and 37,000 Naperbrook). In 2013 there were no rate increases built into the rate structure. In 2014 and 2015 rate increases of $1.50 per round are proposed for the majority of rate categories. The number of rounds in years 2014 and 2015 are projected to remain flat at the 2012 levels. See pages 5 6 Attachment A for green fee rates. Attachment B (page 7) The attached Fee and Cart Comparison illustrates the District s proposed rates for 2014 compared to other local courses for 2012 (2012 is the most current rate data available). This comparison will be updated in April when 2013 rate data becomes available. Also included in the comparison are the District s 2011 rates. The District reduced rates in 2012 and will hold those rates flat for Even with the proposed rate increase of $1.50 in 2014, rates will still remain below 2011 levels. 2. Golf Cart Income 2013 Budget $532k Golf cart rental income has a direct relationship with the number of rounds played in a year. With the number of rounds projected to be consistent with the number in 2012, there are no increases in projected in cart income. There are no fee increases anticipated in cart rental income. 3. Concession Revenue 2013 Budget $325k Both courses have limited menus that include hot dogs, brats, and cold sandwiches. The 1.3% increase in 2013 is a result of sales in For year 2014 a slight decrease is proposed based on average concession revenues. This plan assumes the same concession menu and does not anticipate an expanded menu and operation. 4. Driving Range Income 2013 Budget $271k There are no increases in driving range fees built into the 3 year plan. With the number of rounds anticipated at the 2012 level, driving range income is projected to remain the same as in Page 2

62 5. Merchandise Sales 2013 Budget $227k Includes golf equipment and apparel. Merchandise sales numbers are projected to increase 6% in 2013 based on actual sales data in Sales income for years 2014 and 2015 are projected to remain at the 2013 amount of $227k. 6. Golf Program Revenue 2013 Budget $201K Represents golf lessons that are offered through the District s program guide, Season Reserve Tee Time Lottery, C.D.G.A. handicap memberships, Golf Simulators at Springbrook and Snag Golf. The 11% increase in 2014 is based on the indoor simulators and SNAG golf program at Springbrook. There are offsetting expenses in contractual services to run these programs (both of these programs on the revenue and expense side were not included in the 2013 budget). 7. Memberships 2013 Budget $214k Represents the purchase of Brooks Links and Brooks Advantage Card Memberships programs. The Links members receive unlimited play and practice privileges, the Advantage members receive daily rate discounts. The 2012 membership programs were extremely successful with the Links and Advantage program showing an increase from The 20% projected increase in the 2013 budget reflects continued increased participation. 8. Miscellaneous Revenue 2013 Budget $85k Is comprised of sales tax, outings and reimbursement income from schools. The increase of 11% in 2013 is primarily a result commission revenues and sales tax revenues. 9. Tournament Income 2013 Budget $95k Both courses host a combined total of 15 tournaments per year. The 18% increase in 2013 reflects increased participation numbers at Naperbrook. 10. Alternative Revenue 2013 Budget $16k Is mainly comprised of sponsorships. The 59% increase in 2014 represents funds generated by a new digital display program agreement and tee/hole sponsorship program. ASSUMPTION TABLE: EXPENDITURES: The 2013 percent changes based on a comparison to the 2012 budget. Expenditures Description 1 Wages Regular 1.9% 2.0% 2.0% Full time employees 2 Wages Short Term 1.6% 0.8% 1.7% Seasonal employees 3 Employee Insurance 7.5% 10.0% 10.0% PDRMA Insurance pool 4 Other Benefits 0.8% 11% 0.4% Payroll Taxes, Uniforms, Training, Conferences 5 Retirement 4.0% 1.5% 1.5% IMRF Pension Plan 6 Supplies 9.5% 3.9% 3.1% Variety of supplies ranging from concession to course maintenance supplies 7 Contractual Services 5.6% 9.3% 1.8% Variety 8 Utilities 9.3% 2.2% 2.2% Telephone, Electric, Water and Gas 9 Misc. Expense 2.0% 2.0% 2.0% Administrative Overhead Charges Page 3

63 1. Wages Regular 2013 Budget$ 599k Includes full time employees that are group plan benefit eligible. A 2% merit pool increase has been included in years 2014 and Short Term 2013 Budget $686k Includes seasonal employees. A 2% merit pool increase has been included in years 2014 and Employee Insurance 2013 Budget $168k The District is a member of PDRMA Health that provides pooled health insurance. The pooling and risk sharing have kept insurance increases for the District below the national average of 10% 15%. The increase from the 2012 to 2013 budget includes a 7.5% premium increase and census changes. For both 2014 and 2015 a 10% general premium rate increase was assumed. Financial impacts of the Affordable Health Care Act will be built into the model at a later date. *Industry Source Laura Ganschow, Health Program Manager Park District Risk Management Agency 4. Other Benefits 2013 Budget $201k Includes FICA, Medicare, unemployment, workers comp, training and other employee benefits. In 2014 the 11% decrease is a result of a reduction in unemployment insurance costs. 5. Retirement 2013 Budget $118k Funding for the District s IMRF Pension Fund. The IMRF plan is required by state statue for Illinois governmental agencies that include park districts. Each member s rate is individually calculated and is impacted by investment returns and census changes. Rate estimates have been provided by IMRF based on the District s experience and anticipated investment returns. The 4.0% increase from 2012 to 2013 is based on a rate increase. Based on anticipated investment returns and the new tier structure, the District s rate for 2014 and 2015 is expected to decrease. The 2013 rate is 11.22%, 2014 is estimated at 11.16% and 2015 estimated at 11.11%. The net percentage increase of 1.5% above results from a higher wage base (2% merit pool) *Industry Source Dick DeCleene Chief Financial Officer Illinois Municipal Fund. 6. Supplies 2013 Budget $437k The 9.5% increase in 2013 represents an increase in supplies for tournaments, lessons and leagues. In years 2014 and 2015 items such as fuel, plant protectants and fertilizer were increased to reflect anticipated price increases. 7. Contractual Services 2013 Budget $654k In 2013 the 5.6% increase is a result of increases in credit card fees, concession and retail purchases. The 9.3% increase in 2014 represents amounts for CDGA fees and increased costs for credit card processing and tournament prizes. 8. Utilities 2013 Budget $91k Utilities include electric, natural gas and water. The 2012 budget was overstated for utilities (mainly for electric) accounting for the majority decrease of 9.3% in the 2013 budget. 9. Miscellaneous Expense 2013 Budget $77k Includes an amount for administrative overhead. The 2.0% increases throughout the plan account for the 2% merit pool increase for the administrative overhead allocation. Page 4

64 ATTACHMENT A Springbrook Green Fee Rates Resident or Resident Resident or Resident Resident or Resident NR Brooks Brooks NR Brooks Brooks NR Brooks Brooks Time Age Holes Day of the Week Non Resident Advantage Advantage Non Resident Advantage Advantage Non Resident Advantage Advantage Regular Adult 18 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Senior 18 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Junior 18 Monday Thursday $ N/A N/A $ N/A N/A $ N/A N/A Regular Adult 9/Super Monday Thursday $ $ $ $ $ $ $ $ $ Regular Senior 9/Super Monday Thursday $ $ $ $ $ $ $ $ $ Regular Junior 9/Super Monday Thursday $ N/A N/A $ N/A N/A $ N/A N/A Twilight Adult 18 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Adult 18 Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Regular Adult 9/Super Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Twilight Adult 18 Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Loop $ N/A N/A $ N/A N/A $ N/A N/A Family Golf Parent $ N/A N/A $ N/A N/A $ N/A N/A Twilight Senior 18 Monday Thursday $ $ $ $ $ $ $ $ $ Twilight Senior 18 Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Cart Adult 18 $ N/A N/A $ N/A N/A $ N/A N/A Cart Adult 9 $ N/A N/A $ N/A N/A $ N/A N/A Cart Senior 18 $ N/A N/A $ N/A N/A $ N/A N/A Fee Increase No Fee increase Decrease Fee New Fee $1 $1.50 per yr. Additional fees generated based on proposed $1.50 rate increase 2014 $28, $29,000 Page 5

65 ATTACHMENT A Naperbrook Green Fee Rates Resident or Resident Resident or Resident Resident or Resident NR Brooks Brooks NR Brooks Brooks NR Brooks Brooks Time Age Holes Day of the Week Non Resident Advantage Advantage Non Resident Advantage Advantage Non Resident Advantage Advantage Regular Adult 18 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Senior 18 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Junior 18 Monday Thursday $ N/A N/A $ N/A N/A $ N/A N/A Regular Adult 9/Super Monday Thursday $ $ $ $ $ $ $ $ $ Regular Senior 9 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Junior 9/Super Monday Thursday $ N/A N/A $ N/A N/A $ N/A N/A Twilight Adult 18 Monday Thursday $ $ $ $ $ $ $ $ $ Regular Adult 18 Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Regular Adult 9/Super Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Twilight Adult 18 Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Loop $ N/A N/A $ N/A N/A $ N/A N/A Family Golf Parent $ N/A N/A $ N/A N/A $ N/A N/A Early Bird All 18 Monday Thursday $ N/A N/A $ N/A N/A $ N/A N/A Early Bird All 9 Monday Thursday $ N/A N/A $ N/A N/A $ N/A N/A Early Bird All 9 Friday Sunday & Holidays $ N/A N/A $ N/A N/A $ N/A N/A Twilight Senior 18 Monday Thursday $ $ $ $ $ $ $ $ $ Twilight Senior 18 Friday Sunday & Holidays $ $ $ $ $ $ $ $ $ Cart Adult 18 $ $ N/A N/A $ N/A N/A Cart Adult 9 $ $ N/A N/A $ N/A N/A Cart Senior 18 $ $ N/A N/A $ N/A N/A Fee Increase $1 $1.50 per yr. No Fee increase Decrease Fee New Fee Additional fees generated based on proposed $1.50 rate increase 2014 $30, $30,000 Page 6

66 ATTACHMENT B 2014 vs Green Fee and Cart Fee Comparison Draft Municipal, County, Public and Park District Facilities within 35 minutes of Naperville COURSE (NPD RES vs. Non RES) COURSE (NPD RES vs. Non RES) Age COURSE (NPD RES vs. Non RES) Color Codes Regular Wkday 18 Hole Senior Wkday 18 Hole Senior Regular Wkend 18 Hole 1 Bartlett Hills $39.00 Mill Creek $ Fox Valley $46.00 Equal or greater then NB 2011 res rate 2 Mill Creek $40.00 Tamarack $ Village Greens $ Fox Valley $41.00 Bartlett Hills $ Carillon $ Nettle Creek $42.00 Cog Hill # 1 & 3 $ Phillips Park $50.00 Equal or greater then SB 2011 res rate 5 Phillips Park $44.00 St. Andrews $ Nettle Creek $ Tamarack $45.00 Village Greens $ Bartlett Hills $ Village Greens $45.00 Phillips Park $ Inwood $ White Tail Ridge $47.00 Nettle Creek $ Wedgewood $53.00 *** 3 Year Comparison Courses 9 *Naperbrook 2014 $47.50 *Naperbrook 2014 $ Woodruff $ Naperbrook 2011 $48.00 White Tail Ridge $ Mill Creek $55.00 Under Woodruff $48.00 Poplar Creek $ White Pines $ Inwood $48.00 White Pines $ Tamarack $57.00 Level Wedgewood $48.00 Naperbrook 2011 $ *Naperbrook 2014 $ Klein Creek $49.00 *Springbrook 2014 $ St. Andrews $58.00 Over *Springbrook 2014 $49.50 Springbrook 2011 $ Naperbrook 2011 $ Carillon $50.00 Fox Valley $ Klein Creek $ Rates 17 Springbrook 2011 $51.00 Heritage Bluffs $ *Springbrook 2014 $ St. Andrews $51.00 Inwood $ Prairie Bluff $ projected rates 19 Heritage Bluffs $52.00 Mistwood G.C. $ Cog Hill # 1 & 3 $ Prairie Bluff $52.00 Wedgewood $ Fox Bend $ White Pines $52.00 Woodruff $ White Tail Ridge $ CogHill#1&3 $53.00 Big Run $ Blackberry Oaks $ $ Blackberry Oaks $65 00 *The proposed 23 Poplar Creek $54.00 Bolingbrook G.C. $ Heritage Bluffs $ Settler's Hill $56.50 Carillon $ Settler's Hill $ Blackberry Oaks $57.00 Prairie Bluff $ Springbrook 2011 $ Broken Arrow $57.00 Settler's Hill $ Broken Arrow $ Fox Bend $57.00 Blackberry Oaks $ Big Run $ Big Run $59.00 Fox Bend $ Poplar Creek $ Mistwood G.C. $59.00 Prairie Landing GC $ Prairie Landing GC $ Prairie Landing GC $59.00 Broken Arrow $ Oak Brook $ Orchard Valley $66.00 Klein Creek $ Orchard Valley $ Oak Brook $66.50 Village Links $ Arrowhead $ Ruffled Feathers G.C. $66.50 Oak Brook $ Village Links $ Arrowhead $67.00 Arrowhead $ Mistwood G.C. $ Village Links $72.00 Orchard Valley $ Bolingbrook G.C. $ Seven Bridges GC $82.00 Seven Bridges GC $ Ruffled Feathers G.C. $ Bolingbrook G.C. $83.00 Ruffled Feathers G.C. $ Seven Bridges GC $ Cantigny $ Cantigny $ Cantigny $ *The proposed increased rates for 2014 are all still less than rates in 2011 Page 7

67 Attachment C Naperville Park District Golf Debt Schedule Springbrook Naperbrook Total Additional Principal Interest Total Principal Interest Total Principal Interest Total Cost , , ,471 86,700 36, , , , ,254 14, , , ,352 91,800 31, , , , ,930 4, , , ,653 99,450 27, , , , ,980 22, , , , ,100 23, , , , ,118 20, ,100 94, , ,900 19, , , , ,918 14, ,600 73, , ,400 15, , ,000 88, ,793 24, ,950 50, , ,050 10, , ,000 61, ,433 17, ,600 26, , ,400 5, , ,000 31, ,980 25,547 4,349, ,676 5,177, , ,730 1,060,530 5,240, ,406 6,238,406 Page 8

68 Addendum C Capital Plan District Wide Plan inlcuding Golf Capital Projects Page 1