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Budget Summary BUDGET SUMMARY 2016 GOVERNM ENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Chicago Park District Illinois For the Fiscal Year Beginning JanuaryJanuary 1,1, 20152015 he Fiscal Year Beginning January Executive 1, Director 2015 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Chicago Park District, Illinois for its annual budget for the fiscal year beginning January 1, 2015. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 2016 Chicago Park District Budget Summary Citizens of Chicago, I am pleased to present the Chicago Park District’s 2016 Budget. The $458.1 million proposal offers a balanced budget that invests in the recreational needs of children and families in the 77 communities of Chicago. The 2016 budget provides for the expansion of some of the District’s most highly sought after programs, including gymnastics and aquatics to address the growing demand and wait lists. Additional highlights of the 2016 plan include the expansion of Night Out in the Parks programming to a year-round arts and culture series; a partnership with the Chicago Public Schools to focus on critical elementary grade sports programming; expansion of programs targeting teens; the expansion of Special Recreation programming to additional park sites throughout the city, as well as the growth of Special Olympics Spring Game participation; and further integration of wellness and nutrition curriculum into other programs. Hundreds of thousands of families count on park programs for athletics, cultural and social enrichment. This budget delivers by expanding existing programming and creating new opportunities that keep residents of all ages active and engaged. For the ninth time in a period of ten years, the Chicago Park District budget comes with no property tax increase. Programs will face a modest hike yet they remain affordable and well below competing recreational facilities. Families in need will still be able to access nearly $3 million in financial assistance. We remain the best deal in town, and no child will be turned away for their family’s inability to pay. The 2016 spending plan is approximately $9.5 million higher than the FY2015 budget. It fulfills a pension obligation of $30.8 million per the Pension Legislation Public Act 098-0622 for employees and retirees. It also funds increases in personnel hours needed to accommodate recent facility expansions such as La Villita Park in the Little Village Community and the 606 trail, both opened in 2015; and the highly anticipated Quad/Ellis Park fieldhouse in Bronzeville and the Eleanor Boat House in the Bridgeport community scheduled to open next spring. With minimal fee increases, cost savings and efficiencies in excess of $5.3 million were pursued in an effort to create a balanced budget. At $310 million, property taxes and personal property replacement tax make up the majority of Chicago Park District revenues. Revenue from privatized contracts are expected to bring in $80 million. Soldier Field, which broke its record for monthly income this past summer, will have another strong year welcoming Copa America Centennial Soccer Tournament, International Rugby and world renowned, musical touring artists. These revenues go right back to support neighborhood parks. We thank the residents of Chicago and park patrons for helping shape the 2016 budget. I look forward to all the new and exciting things to come in the next year. Sincerely, Michael P. Kelly General Superintendent & CEO Chicago Park District i 2016 Chicago Park District Budget Summary Table of Contents Organizational Chart ............................................................................................................................................. 1 Economic Outlook ................................................................................................................................................. 3 Operating Budget Summary ................................................................................................................................. 4 Demographics ....................................................................................................................................................... 9 Mission & Core Values ........................................................................................................................................ 15 Fund Structure .................................................................................................................................................... 20 Financial Policies ................................................................................................................................................. 22 Budget Process.................................................................................................................................................... 25 Fund Balance ....................................................................................................................................................... 26 Operating Budget – Detailed Revenue ............................................................................................................... 30 Property Tax ................................................................................................................................................... 30 Personal Property Replacement Tax (PPRT) ................................................................................................... 32 Grants, Donations and Sponsorships .............................................................................................................. 32 Privatized Contracts ........................................................................................................................................ 35 Program Revenue ........................................................................................................................................... 41 Rentals and Permits ........................................................................................................................................ 41 Operating Budget – Detailed Expenses .............................................................................................................. 42 Personnel ........................................................................................................................................................ 42 Debt Service .................................................................................................................................................... 44 Utilities ............................................................................................................................................................ 45 Remittance to Aquarium, Museum and Zoo .................................................................................................. 45 Long Term Financial Planning ............................................................................................................................. 46 Capital Improvements......................................................................................................................................... 47 Debt Administration ........................................................................................................................................... 59 DEPARTMENTAL BUDGET SUMMARIES .............................................................................................................. 61 Glossary............................................................................................................................................................. 129 ii 2016 Chicago Park District Budget Summary Chicago Park District Organization Chart 1 2016 BUDGET SUMMARY SECTION I BUDGET OVERVIEW CHICAGO PARK DISTRICT 2 Budget Overview Economic Outlook As fiscal year 2015 comes to a close, the national economy, while showing some loss of momentum, continues to grow overall. Recent data indicate moderation in economic growth from the second quarter with real GDP growing at an annual rate of 1.5%, down from the 3.9% rate of the second quarter, and for the year average growth of 2% which the economy has been hovering at since the recovery began. While some areas of the economy have slowed, there are still positive indices being reported and consumer sentiment as we head into the holiday season is encouraging. The US Department of Labor reported national unemployment rates moving from 5.7% in January 2015 to 5.0% in October 2015. In the coming months, the national economy is likely to continue to expand at a modest pace. Historically, the state and local economy have followed the national economy with a slight lag. For September 2015, the preliminary unemployment rate for Illinois was 5.4% and the City of Chicago was 5.6%. According to the Illinois Department of Employment Security (IDES), during September 2015 nonfarm payroll employment shed 6,900 jobs with job numbers dropping for a fourth consecutive month, keeping Illinois below the
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