ELMHURST PARK DISTRICT ELMHURST, IL

ANNUAL BUDGET

Fiscal Year - January 1 – December 31, 2018

ADMINISTRATIVE OFFICE

375 W. First Street Elmhurst, IL 60126 630-993-8900 www.epd.org

BOARD OF PARK COMMISSIONERS

Vince Spaeth, President Kevin Graf, Vice President Doug Ennis Mary E. Kies Patricia Morissette-Moll Tim Sheehan Carolyn Ubriaco

MANAGEMENT TEAM

James W. Rogers, Executive Director Angela Ferrentino, Director of Facilities Christi Jacobson, Director of Finance and Human Resources Brian McDermott, Director of Enterprise Services Daniel Payne, Director of Parks Cindy Szkolka, Director of Recreation Kari Felkamp, Director of Marketing and Communications Allison Wiggins, Director of Information Technology Laura Guttman, Strategy & Planning Coordinator Nimfa Melesio, Administrative Office Manager

Mission

We enrich lives while having fun.

Vision

To be a national leader in providing memorable parks and recreation experiences to our community.

BUDGET PRESENTATION AWARD

The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to the Elmhurst Park District for its annual budget for fiscal year beginning January 1, 2017. 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. Besides receiving the award, the District earned special recognition from GFOA for the document being outstanding as a financial plan.

The award is valid for a period of one year. Based on GFOA’s criteria, the budget continues to conform to program requirements, and the 2018 budget document will be submitted to GFOA to determine its eligibility for the award in 2018.

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2018 BUDGET: READER’S GUIDE

The 2018 Budget document is divided into sections highlighted by tabs. Below is an explanation of what information can be found behind each tab. Each bolded topic represents a tab.

Section 1: Transmittal Letter: This is a communication from the Executive Director to the Elmhurst Park Board. It highlights the 2018 Budget including how it addresses the priorities established by the Board, changes from the prior year and economic trends impacting the District.

Section 2: Budget Summary and District Profile: This section provides a summary of the budget using tables, charts, and narratives along with a profile of the community and District.

Section 3: Long-range and Organizational Planning: This section discusses the Vision 2020 and Long-range Financial Plans, including how these tools guide the proposed 2018 Budget and lay the groundwork for future decision making. Cash and investment targets and fund balances are assessed and an overview of personnel expenses and staffing levels is provided.

Section 4: Budget Process and Financial Policies: Included in this section is a summary of the budget process and reporting requirements and the financial policies that guide development of this budget and the financial affairs of the District.

Section 5: Fund Summary: This section explains the fund structure (basic accounting unit) of the District and the purpose of each fund. An analysis of past and projected fund revenues and expenditures is provided.

Section 6: Revenue Analysis: A summary of all revenue sources is provided in this section including a detailed overview of each of the revenue sources and an explanation of how they are estimated.

Section 7: Expenditures by Function: In this section, expenditures are presented according to the District’s major functional areas rather than by Fund. This section includes functional area missions, responsibilities, 2017 accomplishments, 2018 work plan, budget highlights, future outlook and performance measures. The functional areas are Administration, Marketing and Communications, Finance and Human Resources, Information Technology, Parks, Facilities, Recreation, Enterprise Services and Golf Course. Transfer, capital, and debt expenditures are not presented in this section.

Section 8: Long Range Capital Plan and 2018 Capital Budget: This section includes all capital related expenditures (enterprise and non-enterprise facilities), including a summary of the long-range capital plan, proposed 2018 capital budget revenues and expenditures and impact of capital projects on the operating budget.

Section 9: Debt Service Fund and Detail: This section includes an overview of debt service obligations, the District’s debt limit, and debt service schedules listing the maturity of all existing debt.

Section 10: Glossary: This section provides definitions of words used throughout the document that may not be familiar to the reader. The list of words includes technical terms, acronyms, and words specific to government finance and park and recreation agencies.

For more information regarding the District, visit the Elmhurst Park District website at www.epd.org or contact the District at 630-993-8900 or e-mail [email protected] with any comments or questions.

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ii 2018 BUDGET: TABLE OF CONTENTS

Reader’s Guide i

Section 1: Transmittal Letter 1

Section 2: Budget Charts and District Profile 9 Summary Charts 9 District and Community Profile 18

Section 3: Long-range and Organizational Planning 25 Comprehensive Plan and Strategic Plan 25 Performance Measurement 31 Long-range Budget Plan 32 Cash and Investments and Fund Balance Analysis 35 Personnel Summary 38 Organizational Chart 42

Section 4: Budget Process and Financial Policies 45 Budget Process and Reporting Requirements 45 Basis of Budgeting 45 Budget Calendar 46 Budget Policies 47 Revenue Policies 48 Expenditure Policies 49 Fund Balance Policies 49 Cash and Investment Reserve Policies 49 Capital Improvement Policies 51 Debt Policies 52 Cash Management (Investments) Policies 52 Capital Assets Policies 52 Financial Reporting Policies 53 Fund Structure 53

Section 5: Fund Summary 57 Summary 57 Basis of Presentation – Fund Accounting 59 General Fund (includes IMRF, FICA, Liability and Audit) 61 Recreation Fund (includes Museum and Special Rec. Assoc.) 68 Debt Service Fund 73 Capital Improvement Fund (includes Paving and Lighting) 74 Enterprise Services Fund 76 Early Bond Repayment Fund 79 iii 2016 BUDGET: TABLE OF CONTENTS

Sugar Creek Golf Course Fund 80 Management Information Systems Fund 82 2018 Budget Interfund Transfer Summary 83

Section 6: Revenue Analysis 85 Summary 85 Taxes (Property and Corporate Replacement) 88 Donations, Advertising, Sponsorships and Scholarships 98 Grants 99 Program Fees 100 Rentals and Leases 103 Passes, Memberships and Daily Uses 104 Merchandise Sales 107 Transfers 108 Bond Proceeds, Insurance Proceeds and Disposal of Fixed Assets 110 Interest 111

Section 7: Expenditures by Function 113 Summary 113 Administration 116 Marketing and Communications 123 Finance and Human Resources 127 Information Technology 131 Parks 135 Facilities 139 Recreation 144 Enterprise Services 150 Sugar Creek Golf Course 156

Section 8: Long Range Capital Plan and 2018 Capital Budget 159 Capital Planning Process 159 2018 Capital Plan Funding and Projects 161 Impact of Projects on Operating Budget 171 Five-Year Comparison of Capital Plan Expenditures 173 Vision 2020 and ADA Transition Plan 173 Depreciation 174 2018-2027 Capital Plan Summary 175

Section 9: Debt Service Overview 179 Outstanding Debt 179 2018 Proposed Debt Service Revenue 180 iv 2018 BUDGET: TABLE OF CONTENTS

Bond Rating 181 Debt Limit 181 Debt Service Requirements to Maturity and Summary of Bonds 182

Section 10: Glossary 186

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vi

November 13, 2017

Board of Park Commissioners Elmhurst Park District Elmhurst, Illinois

Honorable Commissioners:

I am pleased to present for your consideration the proposed 2018 Elmhurst Park District Budget for the fiscal year beginning January 1, 2018 and ending December 31, 2018. The Elmhurst Park District Budget serves three primary purposes: form public policy, control spending, and serve as a written financial plan. It is a documented means of providing financial accountability to the public as the District aims to maintain quality service levels at the lowest possible cost, while addressing the goals of its Strategic Plan. The District’s Budget complies with the provisions of the Park Code and Board Policy. All required hearings have been held or are scheduled, with the appropriate notice provided.

Budgeting is not an independent process, as other planning efforts such as strategic planning and capital improvement planning drive budget development. Therefore, the Board and staff review these other processes throughout the year as described on pages 25 and 159. The budget represents the fiscal priorities for the upcoming year based on your long-range plans, which help the District achieve its mission of providing experiences for lifetime enjoyment. The annual budget is one of the most important documents approved by the Board due to its comprehensive nature, including outlining the range of services offered, prioritizing the allocation of government resources and the time invested by both the Board and staff in future planning.

Preparation of the annual budget begins in July with staff review and development of the Strategic Work Plan and Long-range Capital Improvement Plan. The budget process continues in early August with staff training on budget parameters and expectations. Department budget requests are prepared in August and September, followed by a review and analysis of overall projections by the Executive Director. After this review, the proposed Budget is prepared and distributed to the Board in early November for review and analysis before staff’s formal presentation on October 23 and on November 13, 2017 and the Board’s approval of the Budget and Appropriation Ordinance on December 11, 2017.

By following the Government Finance Officers’ Association’s (GFOA) best practices for budgeting, the District received the Distinguished Budget Presentation Award from 2007 to 2017. In the proposed 2018 Budget, staff continue to implement the recommendations of GFOA budget reviewers to provide a greater understanding of the District’s financial condition and the long-range implications of the proposed budget.

2018 Budget Summary In formulating the annual budget, staff analyze a significant amount of data to project the next fiscal year’s revenues and expenditures. Staff review historical and current revenue and expenditure trends, potential new projects and initiatives, current economic conditions, relevant changes in the law, and numerous other

375 W. First Street Elmhurst, Illinois 60126 P: (630) 993-8900 F: (630) 993-8913 www.epd.org Vince Spaeth Kevin Graf Doug Ennis Mary E. Kies Patricia Morissette-Moll Tim Sheehan Carolyn Ubriaco factors that impact the Budget. Some items, particularly recurring expenses or more stable revenues, are relatively easy to predict or control. Other items are more volatile and can fluctuate greatly depending on local and national conditions. The District’s overall philosophy is to project revenues and expenses conservatively, and to use sound financial planning to achieve the Board’s priorities, utilize existing reserves to maintain assets, take steps and allocate resources to address competition, attract and retain customers, and provide a balanced level of services and programs expected by the community. Furthermore, staff recognize that to ensure long-term financial sustainability, the District must proactively divest in those programs with declining participation while putting resources into areas with potential growth. In 2018, the District has the fiscal agility to use reserves to address capital project needs, maximize and grow revenue, ensure adequate staffing, and undertake key Strategic Plan initiatives for long-term success.

To remain economically stable, the District’s long-term Budget Plan and the 2018 Budget continue the existing philosophy and policy of positioning the District financially so that it can carefully use available reserves for capital projects along with a long-term plan to build future reserves. As illustrated in the 2018 Budget Summary by Fund chart below, staff project that the total 2018 Budget will have a deficit of $2,088,843 (in the Net Column) due to using $2,392,966 from reserves for capital projects and $35,900 to pay debt (in the Cash & Investment Spend Down column) that is possible due to the accumulation of excess reserves over the established cash and investment targets in accordance with Board policy. The deficit occurs because a portion of expenditures have no revenue offset since the revenues were received and recorded in previous years. This deficit is offset with an overall net operating surplus1 of $310,606 mainly to replenish reserves in the General Fund with a $241,296 net surplus, the Recreation Fund with a $292,178 net surplus and Enterprise Service Fund with a $41,591 net surplus. The chart below illustrates 2018 projected revenues and expenditures for the operating, debt and capital and total budgets.

2018 Budget Summary by Fund Cash & Operating Investment Total Revenues Expenditures Operating Net Spend Down Expenditures Net General Fund 3,862,856 3,621,560 241,296 423,195 4,044,755 (181,899) IMRF Fund 451,958 410,097 41,861 - 410,097 41,861 FICA Fund 215,580 409,176 (193,596) - 409,176 (193,596) Liability Insurance Fund 48,492 255,390 (206,898) - 255,390 (206,898) Audit Fund 53,809 53,717 92 - 53,717 92 Recreation Fund 5,491,145 5,198,967 292,178 1,038,750 6,237,717 (746,572) Special Recreation Association Fund 729,672 663,764 65,908 30,000 693,764 35,908 Museum Fund 300,412 299,981 431 - 299,981 431 Enterprise Services Fund 4,664,293 4,622,702 41,591 387,966 5,010,668 (346,375) Sugar Creek Golf Course Fund 1,095,149 1,067,406 27,743 - 1,067,406 27,743 Total Operating 16,913,366 16,602,760 310,606 1,879,911 18,482,671 (1,569,305) Debt Service Fund 1,853,920 1,844,400 9,520 - 1,844,400 9,520 Early Bond Repayment Fund - - - 35,900 35,900 (35,900) Capital Improvement Fund 2,160,003 2,140,353 19,650 463,055 2,603,408 (443,405) Paving & Lighting Fund 90,234 89,987 247 50,000 139,987 (49,753) Total Debt and Capital 4,104,157 4,074,740 29,417 548,955 4,623,695 (519,538) Total 21,017,523 20,677,500 340,023 2,428,866 23,106,366 (2,088,843)

1 Revenues minus expenses without the spend down of cash and investments 2 Revenue Total proposed 2018 revenue for all funds is $21,017,523, a decrease of 2.1% as compared to the 2017 Budget and a 6.4% increase over 2016 actual revenue. The overall decrease in 2018 Budget revenue as compared to the 2017 Budget is due to a decrease in bond proceeds as the 2017 Budget included $2,200,000 for financing land acquisition purchases. The decrease is partially offset by increased transfers in the 2018 Budget primarily from the General and Recreation Funds to the Capital Improvement Fund to finance capital projects including the Berens Park Turf Replacement. For a comprehensive analysis of revenues, refer to the Fund Summary section on page 57 and Revenue Analysis section on page 85.

The Four-year Summary of Revenue by Fund chart below (along with the accompanying graph) provides comparisons of 2015 actual, 2016 actual, 2017 approved budget, and 2018 projected budget revenues by fund and illustrates the amount and percent change of revenues for the 2018 proposed budget as compared to the 2017 approved budget by fund.

Four-year Summary of Revenue by Fund

2017 vs. % Change Fund/Fund Actual 2015 Actual 2016 Budget 2017 Budget 2018 2018 17 vs. 18 General Fund 3,379,101 3,481,288 3,492,709 3,862,856 370,147 10.6% IMRF Fund 386,542 388,734 392,759 451,958 59,199 15.1% FICA Fund 382,391 385,329 383,309 215,580 (167,729) -43.8% Liability Insurance Fund 254,566 256,319 249,254 48,492 (200,762) -80.5% Audit Fund 50,473 51,199 51,137 53,809 2,672 5.2% Recreation Fund 4,945,878 5,131,458 5,117,504 5,491,145 373,641 7.3% Special Recreation Association Fund 630,162 670,116 692,709 729,672 36,963 5.3% Museum Fund 276,780 281,567 296,397 300,412 4,015 1.4% Enterprise Services Fund 5,432,541 4,428,234 4,753,757 4,664,293 (89,464) -1.9% Sugar Creek Golf Course Fund 1,044,673 1,029,255 1,082,872 1,095,149 12,277 1.1% Total Operating Budget 16,783,108 16,103,499 16,512,407 16,913,366 400,959 2.4% Debt Service Fund 1,658,834 1,668,213 1,819,876 1,853,920 34,044 1.87% Early Bond Repayment Fund 2,609 2,220 - - - 0.0% Capital Improvement Fund 1,055,101 1,826,393 2,972,784 2,160,003 (812,781) -27.3% Paving & Lighting Fund 90,178 135,660 160,242 90,234 (70,008) -43.7% Total Budget 19,589,830 19,735,985 21,465,309 21,017,523 (447,786) -2.1%

Revenue

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

- Actual 2015 Actual 2016 Budget 2017 Budget 2018

3 Expenditures Total proposed 2018 expenditures for all funds is $23,106,366, a 2.5% increase over the 2017 budget and 11.9% increase over 2016 actual expenditures. Expenditures reflect an increase as compared to the 2017 Budget primarily due to increased transfers from the General and Recreation Funds to the Capital Improvement Fund for capital projects ($1,461,945 in 2018 vs. $339,000 in 2017). For a comprehensive analysis of expenditures, refer to the Fund Summary section on page 57 and the Expenditures by Function section on page 113.

The Four-year Summary of Expenditures by Fund chart below (and accompanying graph) provides comparisons of 2015 actual, 2016 actual, 2017 approved budget, and 2018 projected budget expenditures by fund. The chart illustrates the amount and percent change of expenditures for the proposed 2018 budget as compared to the 2017 approved budget by fund.

Four-year Summary of Expenditures by Fund

2017 vs. % Change Fund/Fund Actual 2015 Actual 2016 Budget 2017 Budget 2018 2018 17 vs. 18 General Fund 4,214,142 3,206,887 3,439,516 4,044,755 605,239 17.6% IMRF Fund 361,045 353,039 385,222 410,097 24,875 6.5% FICA Fund 339,221 338,759 382,865 409,176 26,311 6.9% Liability Insurance Fund 228,367 223,852 249,127 255,390 6,263 2.5% Audit Fund 45,073 48,287 50,872 53,717 2,845 5.6% Recreation Fund 4,627,275 4,931,266 5,255,081 6,237,717 982,636 18.7% Special Recreation Association Fund 605,790 817,710 720,466 693,764 (26,702) -3.7% Museum Fund 257,074 262,269 294,751 299,981 5,230 1.8% Enterprise Services Fund 4,831,720 4,758,254 4,821,895 5,010,668 188,773 3.9% Sugar Creek Golf Course Fund 915,585 945,686 1,079,890 1,067,406 (12,484) -1.2% Total Operating Budget 16,425,292 15,886,009 16,679,685 18,482,671 1,802,986 10.8% Debt Service Fund 1,651,516 1,653,346 1,819,876 1,844,400 24,524 1.3% Early Bond Repayment Fund 75,991 75,937 75,715 35,900 (39,815) -52.6% Capital Improvement Fund 939,318 2,889,064 3,796,665 2,603,408 (1,193,257) -31.4% Paving & Lighting Fund 105,463 147,505 160,205 139,987 (20,218) -12.6% Total Budget 19,197,580 20,651,861 22,532,146 23,106,366 574,220 2.5% 392,250 (915,876) (1,066,837) (2,088,843) (1,022,006) 95.8% Net

Expenditures Operating Expenses

Total Expenses 25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

- Actual Actual Budget Budget 2015 2016 2017 2018

4 Significant Budget Issues, Trends and Highlights This section highlights the key factors that guided the development of the 2018 Budget.

National, State and Local Economic Indicators To preserve the financial health of the District, staff continually monitor economic trends to understand their impact on budget development and future financial strategies. Reports from a variety of sources provide staff with forecasts based on leading economic indicators such as employment, housing, financial markets and consumer confidence. While the labor market has recovered significantly and employment has returned to pre-crisis levels, there is still widespread debate regarding the health of the U.S. economy. In addition, even though the worst effects of the recession are now fading, the economy still faces a variety of significant challenges going forward. Deteriorating infrastructure, wage stagnation, rising income inequality, elevated pension and medical costs, as well as large government budget deficits, are all issues facing the US economy.

Leading data suggests economic momentum persisted in spite of weather-related setbacks. Both retail sales and business spending continue to rise while the unemployment rate dropped to 4.1% and average earnings growth picked up markedly. In addition, while the State of Illinois continues to lag the nation in key economic indicators, including an unemployment rate at 5%, on the local level, the Equalized Assessed Value (EAV) of property within the District increased for the second consecutive year after experiencing five years of declining values.

While the economy has recently shown improvement and resilience, in order to guard against any future downturns or upheavals, it is imperative that the District continue to budget conservatively and maintain appropriate reserves to ensure future fiscal agility as outlined in the Board’s Capital Reserve Policy. Based on this Policy, staff built a net operating surplus2 of $310,606 into the 2018 Budget. Through continued careful planning and taking advantage of opportunities to maximize resources, the Board will sustain reserves at fiscally responsible levels to meet emergency operating needs. For example, the projections for cash and investments available on December 31, 2017 and 2018 provide approximately six months of savings based on the District’s average spending per month. For a detailed analysis and explanation of District Cash and Investments and Fund Balances see page 35 and the Capital Reserve Policy on page 49.

Property Tax Revenue Property Tax Revenue is a critical source of funding in the District’s Budget annually and is approximately 40% of budgeted revenues. The EAV of property within the District increased last year by 8.6% to $2,223,048,837 and had increased the year prior by 13.2%. The increases over the past two years were preceded by five years of declining values after the 2009 high of $2,471,251,600. For the 2017 levy, discussions with York and Addison Township Assessor’s Offices and City of Elmhurst indicate a projected increase next year of 7.00% in EAV. Total 2017 new construction is estimated at $32,815,629. New construction is based on the prior three year average and includes an adjustment for property released from the Elmhurst Tax Increment Financing (TIF) District II. The applicable Consumer Price Index (CPI) for the twelve-month period ending December 31, 2016 is 2.1%.

Based upon the above assumptions, the District’s limiting rate (excluding SRA and Bond and Interest) is calculated at 0.2645. After calculating the levy using this rate, the total increase would equate to $243,000 in additional tax dollars, which excludes any changes to the Debt Service Fund. This increase will assist in funding the proposed 2018 operating budget that includes projected payments for long-term debt due to the purchase of new property, as well as a proposed use of cash and investments from the tax-supported General and Recreation funds for capital improvements.

2Revenues minus expenses without the spend down of cash and investments 5 Another safeguard against the loss of future revenue is the diversity of non-tax revenue sources (such as fees for programs and memberships) that are projected to be 60.3% of the 2018 Budget (Board policy is 60%). Staff continue to be responsive to revenue trends and market demand and maximize resources to sustain and increase non-tax revenue. See page 85 for an analysis of the District’s revenues.

Health Insurance and Patient Protection and Affordable Care Act Since 2010, staff has continued to monitor the potential impact of the PPACA and, in the 2018 Budget, allocated additional funds for health insurance to add part-time employees who work over 30 hours per week and are eligible for medical insurance in accordance with the Act. Since some part-time and seasonal employees work in a number of different positions, the potential for them to meet or exceed the 30 hour per week threshold is high, and the District continues to monitor their hours closely. In addition, the District switched to a defined contribution health insurance plan in 2016, which allowed employees more insurance plan options with varied costs as well as provided stable and predictable costs for the District. Due to changes in staffing structure and employee coverage elections, employee turnover, and one additional eligible part-time employee, the proposed 2018 Budget reflects a projected increase of 8.8% ($77,069) for health, dental, vision and life insurance expenses as compared to the 2017 Budget. See page 43 for an overview of Health Insurance that impacts the 2018 Budget.

Long-range Financial and Capital Plans The proposed 2018 Budget contains a five-year financial forecast so that the Board and staff can make informed long-term decisions on behalf of the community (see page 32 for an overview of the Long-range Budget Plan). These projections illustrate that if the District continues with its aggressive plan to upgrade and renovate its aging infrastructure and make necessary technology upgrades to serve the customers while simultaneously maintaining current service and staffing levels, there will be budget deficits for each of the next five years ($23.0 million in asset management, equipment, and technology improvements and $25.1 million in new and major redevelopment projects).

To ensure there is no deficit spending in the operating budget while staying true to the District’s Vision 2020 Plan Themes to meet community needs for parks, open space, and outdoor amenities and meet community need for new and existing indoor recreation space, staff is recommending using reserves to sustain parks and facilities. If the District does not maintain its assets or perform preventive maintenance of infrastructure, higher repair expenses and replacement costs will result in the long- and short-term future along with hampering our ability to provide the programs and services our customers expect. Staff proposes capital project spending in 2018 of $3,406,361 (a decrease of $958,831 as compared to the 2017 Budget due primarily to the purchase of property budgeted in 2017). In accordance with the District’s long- term financial planning, staff recommend using mainly reserves and bond proceeds, property tax revenue, fund income and donations to fund capital projects.

This strategy to address the capital needs of the District emphasizes the continued priority for staff to seek outside funding assistance through grants and donations and to accumulate reserves. For example, project funding in 2016 and 2017 included an OSLAD grant and PEP fundraising donations, while the 2018 budget includes funding from donations and partnerships along with the use of accumulated reserves in the Recreation, Special Recreation, Enterprise and Capital Improvement Funds. This approach of seeking outside revenue and accumulating reserves for capital spending is necessary until debt is retired in 2022 and 2025, respectively. See page 159 for an overview of the Long-Range Capital Plan and 2018 Capital Budget and page 179 for an overview of the District’s debt.

Courts Plus Competition With another major private competitor coming into the market within the next 12-18 months to join the dozens of existing small and large providers, Courts Plus will continue to focus on its core strengths of community connection, member engagement and guiding members towards healthy lifestyle success. As begun in 2016, staff will continue to strategically communicate with prospects to attract and retain increased memberships. After several years of financial investment and in light of anticipated increased attrition due to increased competition, the 2018 Budget reflects the facility’s second membership fee

6 increase in three years to maintain revenue and service levels. This increase is proposed along with key expense reductions to help rebuild cash and reserves.

Staffing Changes To remain proactive in finding the most efficient way to operate and budget personnel costs without affecting the ability to provide services, staff annually review and determine if changes should be made to the organizational structure and supervisory and support staff functions and in filling vacancies. In 2018, several staffing changes were made as a result of the 2014-15 Staffing Study, the 2017 Compensation Study, and Vision 2020 Plan implementation. Highlights of changes included in 2018 are the shift of the parks planning and field maintenance staff from the Facilities Department to the Parks Department, promoting the Division Manager of Parks to Director of Parks, eliminating one full-time position in Enterprise Services, adding one full-time position in the Administration Department to assist with Vision 2020 implementation, adding one full-time position to the Facilities Department to assist with special facility management, and wage adjustments recommended in the 2017 Compensation Study. See page 38 for a summary of personnel trends and changes that impact the 2018 Budget.

Vision 2020 Plan In 2016-17, the Park Board and staff updated the District’s Comprehensive Plan and Strategic Plan using a process that included gathering and reviewing community and staff feedback and assessments of parks, facilities, and programs to analyze the state of the District, creating the community’s future vision of park and recreation services and developing an action plan to implement that vision. By basing each Plan on community feedback and defining priorities, the Board can prepare for future community desires and needs along with clarifying organizational direction for focused decision making. Since the inception of the District’s first Comprehensive Plan and Strategic Plan, the Board and staff have selected and implemented projects, programs, and initiatives based upon the priorities articulated during the planning process. To be good stewards of taxpayer dollars, it not only takes financial discipline, but adherence to these priorities established by the community through the new Vision 2020: Comprehensive and Strategic Plan.

The 2018 Budget reflects this dedication as the six themes of the Vision 2020 Plan: meet community needs for parks, open space and outdoor amenities; meet community needs for new and existing indoor recreation space; innovative programming to meet community needs; exceptional and consistent guest experience; sustainable revenue strategies and funding options; and employee growth and development are referenced throughout this document to illustrate how resources are being allocated towards implementing the Plan. For example, the proposed 2018 Budget and the 2018 Strategic Work Plan reflect, but are not limited to, the initiatives for implementing the Vision 2020 Plan listed below:

● Determine approach for and begin building a dog park. ● Complete the replacement of Conrad Fischer Park playground and safety surface and renovate tennis courts, repave asphalt paths, replace drinking fountain and replace concrete pad. ● Complete the replacement of two synthetic turf fields in Berens Park. ● Finalize future of 225 Prospect and small recreation buildings based on evaluation of preschool business model. ● Determine future of Palmer Drive site/building. ● Determine approach to indoor sports facility. ● Offer new extended travel trips for adults/seniors. ● Schedule additional evening art classes and wellness and enrichment programs for adults at The Abbey. ● Establish a customer service committee to develop and roll-out a District-wide customer service model. ● Analyze cost recovery data to ensure future financial sustainability.

7 ● Establish District-wide training plan for all levels of staff. ● Continue to explore ways to expand benefits offered to part-time employees.

To successfully, execute the Vision 2020 Plan, staff also will focus on strengthening the District’s organizational culture to address weaknesses identified by employees during the planning process. An overview of the Vision 2020 Plan, including a copy of the 2018 Strategic Work Plan, is on page 27.

As illustrated in these Budget Highlights and Trends, the Board must continue to make careful and measured decisions, balancing future community needs against the District’s sound fiscal condition, which, based on the Vision 2020 Plan, plays a significant part of the organization’s economic health.

Conclusion This budget reflects the District’s mission to “enrich lives while having fun” and also illustrates the District’s continuing commitment to fiscal responsibility and being responsive to residents’ needs. The budget process once again included input from a large cross-section of staff, and I would like to thank all those who participated for their contributions. Their knowledge, expertise and dedicated effort have been critical in ensuring that this budget reflects the priorities of the Board and the residents we serve. In particular, Christi Jacobson, Director of Finance and Human Resources and Laura Guttman, Strategy and Planning Coordinator have been instrumental in the development and coordination of this budget. Finally, your consistent support, encouragement and sound policy making decisions ensure proper oversight at the elected/community level.

I recommend your approval of the 2018 Budget. We look forward to your questions and comments.

Thank you,

James W. Rogers Executive Director

8 2018 BUDGET: BUDGET CHARTS AND PROFILE

2018 Elmhurst Park District Budget Summary by Fund

The charts below illustrate the Elmhurst Park District’s projected revenues and expenditures for the 2018 operating, debt and capital budgets. The proposed 2018 Budget exhibits a net deficit of $2,088,843 due to the spending down of cash and investments for capital projects ($2,392,966) and to pay debt ($35,900). This deficit is offset with a net operating surplus1 of $310,606 mainly to replenish reserves in the General Fund ($241,296 net surplus1), the Recreation Fund ($292,178 net surplus1), the Special Recreation Fund ($65,908 net surplus1) and Enterprise Service Fund ($41,591 net surplus1). The proposed 2018 Budget includes operating deficits in the FICA Fund ($193,596 net deficit1) and in the Liability Insurance Fund ($206,898 net deficit1) due to planned reserve and tax levy reductions. The General Fund ($181,899) and Recreation Fund ($746,572) illustrate net deficits due to the spending down of reserves for capital projects for facility and park improvements (non- enterprise). The Enterprise Services Fund exhibits a net deficit of $346,375 due to spend down reserves for Courts Plus capital projects. The Capital Improvement Fund exhibits a net deficit of $443,405 primarily due to the spending down of reserves (from capital revenues recorded in previous years) for capital projects, including the Conrad Fischer Park Redevelopment, the Berens Park West Parking Lot Paving project and the Salt Creek Greenway Trail Connector project. The Early Bond Repayment Fund exhibits a net deficit of $35,900 due to spending down reserves to repay debt.

2018 Budget 2018 Budget Revenues Expenditures General Fund 3,862,856 4,044,755 IMRF Fund 451,958 410,097 FICA Fund 215,580 409,176 Liability Insurance Fund 48,492 255,390 Audit Fund 53,809 53,717 Recreation Fund 5,491,145 6,237,717 Special Recreation Association Fund 729,672 693,764 Museum Fund 300,412 299,981 Enterprise Services Fund 4,664,293 5,010,668 Sugar Creek Golf Course Fund 1,095,149 1,067,406 Debt Service Fund 1,853,920 1,844,400 Early Bond Repayment Fund 0 35,900 Capital Improvement Fund 2,160,003 2,603,408 Paving & Lighting Fund 90,234 139,987 Total 21,017,523 23,106,366

Cash & Operating Investment Total Revenues Expenditures Operating Net Spend Down Expenditures Net General Fund 3,862,856 3,621,560 241,296 423,195 4,044,755 (181,899) IMRF Fund 451,958 410,097 41,861 - 410,097 41,861 FICA Fund 215,580 409,176 (193,596) - 409,176 (193,596) Liability Insurance Fund 48,492 255,390 (206,898) - 255,390 (206,898) Audit Fund 53,809 53,717 92 - 53,717 92 Recreation Fund 5,491,145 5,198,967 292,178 1,038,750 6,237,717 (746,572) Special Recreation Association Fund 729,672 663,764 65,908 30,000 693,764 35,908 Museum Fund 300,412 299,981 431 - 299,981 431 Enterprise Services Fund 4,664,293 4,622,702 41,591 387,966 5,010,668 (346,375) Sugar Creek Golf Course Fund 1,095,149 1,067,406 27,743 - 1,067,406 27,743 Total Operating 16,913,366 16,602,760 310,606 1,879,911 18,482,671 (1,569,305) Debt Service Fund 1,853,920 1,844,400 9,520 - 1,844,400 9,520 Early Bond Repayment Fund - - - 35,900 35,900 (35,900) Capital Improvement Fund 2,160,003 2,140,353 19,650 463,055 2,603,408 (443,405) Paving & Lighting Fund 90,234 89,987 247 50,000 139,987 (49,753) Total Debt and Capital 4,104,157 4,074,740 29,417 548,955 4,623,695 (519,538) Total 21,017,523 20,677,500 340,023 2,428,866 23,106,366 (2,088,843)

1Revenues minus expenses without the spend down of cash and investments 9 2018 BUDGET: BUDGET CHARTS AND PROFILE

Four-year Summary by Fund (2015 Actual, 2016 Actual, 2017 Budget and 2018 Budget)

The Four-year Summary by Fund chart below provides comparisons of 2015 actual, 2016 actual, 2017 approved budget, and 2018 projected budget revenues and expenditures by fund. The chart illustrates the amount and percent change of revenues and expenditures for the 2017 approved budget and 2018 projected budget by fund. Total proposed 2018 revenue for all funds is $21,017,523, a decrease of 2.1% as compared to the 2017 budget and a 6.4% increase over 2016 actual revenue. The overall decrease in 2018 Budget revenue compared to the 2017 Budget is due to a decrease in bond proceeds as the 2017 Budget included $2,200,000 for the purpose of financing land acquisition purchases. Total proposed 2018 expenditures for all funds is $23,106,366, a 2.5% increase over the 2017 budget and 11.9% increase over 2016 actual expenditures. Expenditures reflect an increase compared to the 2017 Budget primarily due to increased transfers from the General and Recreation Funds for capital projects ($1,461,945 in 2018 vs. $339,000 in 2017). For a detailed analysis of revenues and expenses by fund refer to the Fund Summary section on page 57.

Revenue 2017 vs. % Change Fund/Fund Actual 2015 Actual 2016 Budget 2017 Budget 2018 2018 17 vs. 18 General Fund 3,379,101 3,481,288 3,492,709 3,862,856 370,147 10.6% IMRF Fund 386,542 388,734 392,759 451,958 59,199 15.1% FICA Fund 382,391 385,329 383,309 215,580 (167,729) -43.8% Liability Insurance Fund 254,566 256,319 249,254 48,492 (200,762) -80.5% Audit Fund 50,473 51,199 51,137 53,809 2,672 5.2% Recreation Fund 4,945,878 5,131,458 5,117,504 5,491,145 373,641 7.3% Special Recreation Association Dept. 630,162 670,116 692,709 729,672 36,963 5.3% Museum Fund 276,780 281,567 296,397 300,412 4,015 1.4% Enterprise Services Fund 5,432,541 4,428,234 4,753,757 4,664,293 (89,464) -1.9% Sugar Creek Golf Course Fund 1,044,673 1,029,255 1,082,872 1,095,149 12,277 1.1% Total Operating Budget 16,783,108 16,103,499 16,512,407 16,913,366 400,959 2.4% Debt Service Fund 1,658,834 1,668,213 1,819,876 1,853,920 34,044 1.87% Early Bond Repayment Fund 2,609 2,220 - - - 0.0% Capital Improvement Fund 1,055,101 1,826,393 2,972,784 2,160,003 (812,781) -27.3% Paving & Lighting Fund 90,178 135,660 160,242 90,234 (70,008) -43.7% Total Budget 19,589,830 19,735,985 21,465,309 21,017,523 (447,786) -2.1% Expenditures 2017 vs. % Change Fund/Fund Actual 2015 Actual 2016 Budget 2017 Budget 2018 2018 17 vs. 18 General Fund 4,214,142 3,206,887 3,439,516 4,044,755 605,239 17.6% IMRF Fund 361,045 353,039 385,222 410,097 24,875 6.5% FICA Fund 339,221 338,759 382,865 409,176 26,311 6.9% Liability Insurance Fund 228,367 223,852 249,127 255,390 6,263 2.5% Audit Fund 45,073 48,287 50,872 53,717 2,845 5.6% Recreation Fund 4,627,275 4,931,266 5,255,081 6,237,717 982,636 18.7% Special Recreation Association Fund 605,790 817,710 720,466 693,764 (26,702) -3.7% Museum Fund 257,074 262,269 294,751 299,981 5,230 1.8% Enterprise Services Fund 4,831,720 4,758,254 4,821,895 5,010,668 188,773 3.9% Sugar Creek Golf Course Fund 915,585 945,686 1,079,890 1,067,406 (12,484) -1.2% Total Operating Budget 16,425,292 15,886,009 16,679,685 18,482,671 1,802,986 10.8% Debt Service Fund 1,651,516 1,653,346 1,819,876 1,844,400 24,524 1.3% Early Bond Repayment Fund 75,991 75,937 75,715 35,900 (39,815) -52.6% Capital Improvement Fund 939,318 2,889,064 3,796,665 2,603,408 (1,193,257) -31.4% Paving & Lighting Fund 105,463 147,505 160,205 139,987 (20,218) -12.6% Total Budget 19,197,580 20,651,861 22,532,146 23,106,366 574,220 2.5% Net 392,250 (915,876) (1,066,837) (2,088,843) (1,022,006) 95.8%

10 2018 BUDGET: BUDGET CHARTS AND PROFILE

Revenue by Source, Expenditures by Function and Expenditures by Object (2015 Actual, 2016 Actual, 2017 Budget and 2018 Budget)

The Revenues by Source chart below illustrates the 2015 and 2016 actual, 2017 approved budget, and 2018 projected revenues by source and the amount and percent change between the 2017 approved and 2018 projected revenues by source. Overall, 2018 revenues by source are decreasing by 2.1% ($447,786) as compared to the 2017 budget. The Expenditures by Function and Expenditures by Object charts below illustrate the 2015 and 2016 actual, 2017 approved budget, and 2018 projected expenditures by function or by object respectively and the amount and percent change between 2017 approved and 2018 projected expenditures by function or by object respectively. Overall, 2018 expenditures are increasing by 2.5% ($574,220) as compared to the 2017 budget (includes capital, transfers, and debt). For a detailed analysis of revenues by source refer to the Revenue Analysis section on page 8, for expenditures by object refer to the Fund Summary section on page 57 and for expenditures by function refer to the Expenditures by Function section on page 113. Revenues by Source 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18

Taxes 7,772,730 7,971,805 7,997,905 8,340,245 342,340 4.3% Donations, Advertising, Scholarships 202,878 458,493 187,590 397,150 209,560 111.7% Grants 10,076 406,265 1,100 1,100 0 0.0% Program Fees 4,284,212 4,356,372 4,440,626 4,573,279 132,653 3.0% Rentals, Leases 782,155 753,351 816,688 768,674 (48,014) -5.9% Passes, Memberships, Daily Uses 3,641,719 3,722,420 3,947,120 3,976,558 29,438 0.7% Merchandise Sales 323,802 307,249 318,632 321,070 2,438 0.8% Transfers 1,829,415 977,654 866,564 1,895,989 1,029,425 118.8% Bond, Insurance Proceeds 722,669 724,422 2,868,584 698,958 (2,169,626) -75.6% Interest 20,174 57,954 20,500 44,500 24,000 117.1% Total Revenues 19,589,830 19,735,985 21,465,309 21,017, 523 (447,786) -2.1%

Expenditures by Object 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18

Salaries & Wages 7,501,989 7,511,205 8,076,145 8,488,474 412,329 5.1% Contractual Services 5,009,565 5,134,497 5,572,702 5,596,305 23,603 0.4% Repairs 196,721 206,750 244,720 235,220 (9,500) -3.9% Supplies 1,349,080 1,306,604 1,469,091 1,499,802 30,711 2.1% Capital 1,724,584 3,925,362 4,355,030 3,406,361 (948,669) -21.8% Transfers/Debt 3,415,641 2,567,443 2,814,458 3,880,204 1,065,746 37.9% Total Expenses 19,197,580 20,651,861 22,532,146 23,106,366 574,220 2.5%

Expenditures by Function 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Park Board/Administration 516,582 589,525 703,059 649,811 (53,248) -7.6% Marketing and Communications 535,447 631,357 667,378 678,856 11,478 1.7% Finance and Human Resources 1,109,900 1,075,927 1,175,090 1,210,512 35,422 3.0% Information Technology 604,406 463,849 668,357 760,287 91,930 13.8% Parks 1,378,075 1,428,148 1,498,964 1,769,889 270,925 18.1% Facilities 2,368,666 2,382,609 2,561,029 2,629,968 68,939 2.7% Recreation 3,115,165 3,196,477 3,530,318 3,567,814 37,495 1.1% Enterprise Services 3,695,169 3,626,904 3,768,750 3,794,784 26,034 0.7% Sugar Creek Golf Course 728,493 759,122 778,777 751,381 (27,396) -3.5% Transfers/Debt/Capital 5,145,677 6,497,942 7,180,424 7,293,065 112,641 1.6% Total Expenditures by Function 19,197,580 20,651,861 22,532,146 23,106,366 574,220 2.5% Net 392,250 (915,876) (1,066,837) (2,088,843) (1,022,006) 95.8% 11 2018 BUDGET: BUDGET CHARTS AND PROFILE

2018 Budget Revenues by Source and Expenditures by Object and Function by Fund

This chart illustrates the projected 2018 revenues by source and expenditures by object/function by Fund. For a detailed analysis of revenues by source refer to the Revenue Analysis section (on page 85), for expenditures by object refer to the Fund Summary section (on page 57) and for expenditures by function refer to the Expenditures by Function section (on page 113) of the budget document.

Capital Sugar Improvement General Fund- Recreation Creek Golf Early Bond Fund- includes Fund-includes Enterprise Course Debt Service Repayment includes Departments Departments Services Fund Fund Fund Fund Departments Total Revenues by Source Taxes 4,372,483 2,685,494 - - 1,192,034 - 90,234 8,340,245 Donations, Advertising, Scholarships 55,900 10,400 4,500 - - - 326,350 397,150 Grants - 1,100 - - - - - 1,100 Program Fees 6,000 3,164,502 1,293,802 108,975 - - - 4,573,279 Rentals 126,844 58,920 412,210 170,700 - - - 768,674 Passes, Memberships, Daily Uses - 507,785 2,820,131 648,642 - - - 3,976,558 Merchandise Sales 30,100 78,028 46,110 166,832 - - - 321,070 Transfers 26,368 - 77,540 - 301,386 - 1,490,695 1,895,989 Bond, Insurance Proceeds - - - - 360,000 - 338,958 698,958 Interest 15,000 15,000 10,000 - 500 - 4,000 44,500 Total Revenues 4,632,695 6,521,229 4,664,293 1,095,149 1,853,920 - 2,250,237 21,017,523

Expenditures by Object Salaries & Wages 1,863,004 3,717,780 2,538,828 368,862 - - - 8,488,474 Contractual Services 2,239,431 1,534,273 1,601,508 214,593 6,500 - - 5,596,305 Repairs 38,100 62,750 125,165 9,205 - - - 235,220 Supplies 508,437 449,033 341,811 200,521 - - - 1,499,802 Capital - 230,000 387,966 45,000 - - 2,743,395 3,406,361 Transfers/ Debt 524,163 1,237,626 15,390 229,225 1,837,900 35,900 - 3,880,204 Total Expenditures by Object 5,173,135 7,231,462 5,010,668 1,067,406 1,844,400 35,900 2,743,395 23,106,366 Net (540,440) (710,233) (346,375) 27,743 9,520 (35,900) (493,158) (2,088,843)

Expenditures by Function Park Board/Administration 389,047 172,667 88,096 - - - - 649,810 Marketing and Communications 344,064 146,591 188,201 - - - - 678,856 Finance and Human Resources 582,242 273,819 312,651 41,800 - - - 1,210,512 Information Technology 281,306 273,703 205,277 - - - - 760,288 Parks 1,568,692 157,768 43,429 - - - - 1,769,889 Facilities 1,178,867 1,451,101 - - - - - 2,629,968 Recreation 304,752 3,263,062 - - - - - 3,567,813 Enterprise Services - 25,125 3,769,659 - - - - 3,794,784 Sugar Creek Golf Course - - - 751,381 - - - 751,381 Transfers/Debt/Capital 524,165 1,467,626 403,355 274,225 1,844,400 35,900 2,743,395 7,293,066 Total Expenditures by Function 5,173,135 7,231,462 5,010,668 1,067,406 1,844,400 35,900 2,743,395 23,106,367 Net (540,440) (710,233) (346,375) 27,743 9,520 (35,900) (493,158) (2,088,844)

12 2018 BUDGET: BUDGET CHARTS AND PROFILE

2018 Budget Percent of Revenues by Source by Fund The graph below illustrates the percent of each revenue source for each Fund in the 2018 Budget.

2018 Budget Percent of Expenditures by Object by Fund

The graph below illustrates the percent of expenditures by object for each Fund in the 2018 Budget.

13 2018 BUDGET: BUDGET CHARTS AND PROFILE

2018 Budget Percent of Expenditures by Function by Fund

The graph below illustrates the percent of expenditures by function for each Fund in the 2018 Budget.

14 2018 BUDGET: BUDGET CHARTS AND PROFILE

2018 Budget Revenues by Source and Expenditures by Object and Function by Fund1

The chart below illustrates the projected 2018 revenues by source and expenditures by object/function by Fund. (General and Recreation Funds). For a detailed analysis of revenues by source refer to the Revenue Analysis section (on page 85), for expenditures by object refer to the Fund Summary section (on page 57) and for expenditures by function refer to the Expenditures by Function section (on page 113) of the budget document.

General IMRF FICA Liability Audit Recreation Museum Revenues by Source Fund Dept. Depart. Dept. Dept. Fund SRA Dept. Dept. Taxes 3,602,644 451,958 215,580 48,492 53,809 1,657,010 729,172 299,312 Donations, Advertising, Scholarships 55,900 - - - - 10,000 - 400 Grants - - - - - 1,100 - - Program Fees 6,000 - - - - 3,163,802 - 700 Rentals 126,844 - - - - 58,920 - - Passes, Memberships, Daily Uses - - - - - 507,285 500 - Merchandise Sales 30,100 - - - - 78,028 - - Transfers 26,368 ------Bond Proceeds ------Interest 15,000 - - - - 15,000 - - Total Revenues 3,862,856 451,958 215,580 48,492 53,809 5,491,145 729,672 300,412

Expenditures by Object Salaries & Wages 1,803,738 - - 27,491 31,775 3,377,186 231,191 109,403 Contractual Services 1,173,317 410,097 409,176 224,899 21,942 1,239,780 232,223 62,270 Repairs 38,100 - - - - 57,250 - 5,500 Supplies 505,437 - - 3,000 - 417,415 350 31,268 Capital ------230,000 - Transfers/Debt 524,163 - - - - 1,146,086 - 91,540 Total Expenditures by Object 4,044,755 410,097 409,176 255,390 53,717 6,237,717 693,764 299,981 Net (181,899) 41,861 (193,596) (206,898) 92 (746,572) 35,908 431

Expenditures by Function Park Board/Administration 311,200 34,198 24,336 9,657 9,657 153,355 19,312 - Marketing and Communications 304,878 22,894 16,292 - - 143,486 870 2,235 Finance and Human Resources 225,514 39,106 27,829 245,733 44,060 256,764 5,704 11,351 Information Technology 281,306 - - - - 273,703 - - Parks 1,426,000 78,282 64,411 - - 41,895 - 115,873 Facilities 971,694 99,775 107,398 - - 1,451,101 - - Recreation - 135,842 168,910 - - 2,771,327 437,878 53,857 Enterprise Services ------25,125 Sugar Creek Golf Course ------Capital/Transfers/Debt 524,163 - - - - 1,146,086 230,000 91,540 Total Expenditures by Function 4,044,755 410,097 409,176 255,390 53,717 6,237,717 693,764 299,981 Net (181,899) 41,861 (193,596) (206,898) 92 (746,572) 35,908 431

1The total revenues for each source and expenditures for each object category and function are in the “Total” column on the chart on the following page.

15 2018 BUDGET: BUDGET CHARTS AND PROFILE

2018 Budget Revenues by Source and Expenditures by Object and Function by Fund2 (continued)

The chart below illustrates the projected 2018 revenues by source and expenditures by object/function by Fund (Enterprise Services, Sugar Creek Golf Course, Debt Service, Early Bond Repayment and Capital Improvement Funds). For a detailed analysis of revenues by source refer to the Revenue Analysis section (on page 85), for expenditures by object refer to the Fund Summary section (on page 57) and for expenditures by function refer to the Expenditures by Function section (on page 113) of the budget document.

Sugar Paving Enterprise Creek Golf Debt Early Bond Capital and Services Course Service Repayment Improvement Lighting Revenues by Source Fund Fund Fund Fund Fund Dept. Total Taxes - - 1,192,034 - - 90,234 8,340,245 Donations, Advertising, Scholarship 4,500 - - - 326,350 - 397,150 Grants ------1,100 Program Fees 1,293,802 108,975 - - - - 4,573,279 Rentals 412,210 170,700 - - - - 768,674 Passes, Memberships, Daily Uses 2,820,131 648,642 - - - - 3,976,558 Merchandise Sales 46,110 166,832 - - - - 321,070 Transfers 77,540 - 301,386 - 1,490,695 - 1,895,989 Bond Proceeds - - 360,000 - 338,958 - 698,958 Interest 10,000 - 500 - 4,000 - 44,500 Total Revenues 4,664,293 1,095,149 1,853,920 - 2,160,003 90,234 21,017,523

Expenditures by Object Salaries & Wages 2,538,828 368,862 - - - - 8,488,474 Contractual Services 1,601,508 214,593 6,500 - - - 5,596,305 Repairs 125,165 9,205 - - - - 235,220 Supplies 341,811 200,521 - - - - 1,499,802 Capital 387,966 45,000 - - 2,603,408 139,987 3,406,361 Transfers/Debt 15,390 229,225 1,837,900 35,900 - - 3,880,204 Total Expenditures by Object 5,010,668 1,067,406 1,844,400 35,900 2,603,408 139,987 23,106,366 Net (346,375) 27,743 9,520 (35,900) (443,405) (49,753) (2,088,843)

Expenditures by Function Park Board/Administration 88,096 - - - - - 649,811 Marketing and Communications 188,201 - - - - - 678,856 Finance and Human Resources 312,651 41,800 - - - - 1,210,512 Information Technology 205,277 - - - - - 760,288 Parks 43,429 - - - - - 1,769,891 Facilities ------2,629,968 Recreation ------3,567,813 Enterprise Services 3,769,659 - - - - - 3,794,783 Sugar Creek Golf Course - 751,381 - - - - 751,381 Capital/Transfers/Debt 403,355 274,225 1,844,400 35,900 2,603,408 139,987 7,293,064 Total Expenditures by Function 5,010,668 1, 067,406 1,844,400 35,900 2,603,408 139,987 23,106,366 Net (346,375) 27,743 9,520 (35,900) (443,405) (49,753) (2,088,843)

2The total revenues for each source and expenditures for each object category and function in the “Total” column on the chart above also include the funds on the chart on the previous page.

16 2018 BUDGET: BUDGET CHARTS AND PROFILE

Elmhurst Park District 2018 Budget Sources and Uses of Funds

The revenue chart illustrates the distribution of District revenues by source.

The expenditure chart illustrates the distribution of expenditures by object.

17 2018 BUDGET: BUDGET CHARTS AND PROFILE

District and Community Profile The Elmhurst Park District of Illinois is duly organized and operates under the provisions of the Illinois Park District Code (70ILCS 1-1 through 13-9e), compiled as part of the Illinois Compiled State statutes.

Chartered: In 1920, the residents of Elmhurst created a unit of local government to provide for the community’s recreational and park interests. The establishment of the Elmhurst Park District and election of its first Commissioners took place on June 5, 1920.

Governance: A community-elected non-partisan Board of Commissioners consisting of seven (7) members constitutes the governing board of the Elmhurst Park District. Commissioners are elected to six (6) - year terms and serve without compensation.

Officers: The Commissioners elect from among themselves a President and a Vice President to serve one (1) - year terms.

Appointed Officials: The Park Board of Commissioners appoint an Executive Director, a Treasurer, an Assistant Treasurer, an Attorney and a Secretary. The Executive Director serves as the Chief Executive Officer (CEO) for the Park District and carries out the policies of the Board.

Boundaries: The Park District currently encompasses 9.8 square miles covering Elmhurst and small portions of unincorporated Elmhurst and the cities of Addison, Berkeley and Northlake.

Elmhurst Demographics: The Park District’s population is approximately 46,337 and the number of households is 16,541 (boundaries are not coterminous with the City of Elmhurst). The percent of families with children under age 18 is 36.8%, the median age is 40.1 years, and the percent of the population over 65 is 14.0% (2010 census). The average family income is $81,486 and per capita income is $32,015 (2010 Census).

Real Estate: The equalized assessed valuation (EAV) of real estate for 2016 is $2,223,662,256.

Tax Rate: The tax rate for levy year 2016 is 0.3584 per $100 of assessed value.

Bond Rating: Moody’s Rating Service issued the District a bond rating of Aa1 in 2010.

Fiscal Year Budget: The budget for 2018 is $23,106,366. The fiscal year is January 1 to December 31.

Park Resources: The Park District manages 463 acres of parkland within 28 parks ranging in size from small neighborhood parks to large parks with facilities for softball, baseball, soccer, tennis, in-line skating, basketball and playgrounds. Within the parks system, the District also maintains and operates the Wilder Park Conservatory and Museum and the Elizabeth Friendship Walk, which features flowers, exotic foliage, and tropical plants. The District is also responsible for the development of all entrepreneurial projects that include Courts Plus Fitness Center (multi-use fitness facility with indoor pool), Wilder Mansion (conference, banquet and community meeting center) and Sugar Creek Golf Course (9-hole, par 32 course and driving range) jointly owned and operated by the Elmhurst Park District and the Village of Villa Park.

Programs and Services: The District offers a diversity of recreational opportunities including sports, specialized summer camps, environmental programs, gymnastics programs, preschool programs, before and after school child activity programs, and performing art classes. The Abbey Leisure Center contains a multi- purpose recreation space where the District provides a diverse selection of activities and social services for the senior population. The Wagner Community Center houses many recreation programs and includes the District’s gymnastics center. The District is also a member of the Gateway Special Recreation Association, which provides recreational services for children and adults with disabilities. Additionally, the District has two

18 2018 BUDGET: BUDGET CHARTS AND PROFILE

outdoor, heated community pools and offers swim lessons at both locations. The District also operates The Hub with miniature golf, batting cages, spray ground and a concessions building.

Organizational Structure and Staffing: The District has seven departments that include Parks, Facilities, Recreation, Enterprise Services, Marketing and Communications, Information Technology, and Finance and Human Resources along with the Administrative functions. The Park District employs 76 full-time, 450 part- time and 300 seasonal workers.

Affiliations: The Park District is a member of the National Recreation and Park Association (NRPA), the Illinois Association of Park Districts (IAPD), the Illinois Park and Recreation Association (IPRA), and the Gateway Special Recreation Association.

Awards: • The National Gold Medal Award for Excellence in Park and Recreation Management Finalist (2006-08, 2010-11). • Illinois Distinguished Agency (accreditation from Illinois Association of Park Districts and Illinois Park and Recreation Association (IPRA)) (1999-2005). Reaccredited (2006-2011, 2012-2017). • Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award (2007- 2017). • GFOA Certificate of Achievement for Excellence in Financial Reporting (2007-2015). • Park District Risk Management Association Loss Control Review Award (Level A accreditation) (2002- 2004). Reaccredited (2005, 2008, 2012, 2016). • Governor’s Sustainability Award (2010-11), Finalist (2013) and Honorable Mention (2014). • Finalist for "Best Small & Medium Companies to Work for in America" sponsored by Great Place to Work® Institute and the Society for Human Resource Management (SHRM) (2008-2009). • Department of Defense Employee Support Award (2008). • IPRA: Agency Showcase 2nd Place Award for Annual Report (2009). • IPRA Outstanding Facility Award: Wilder Mansion redevelopment (2009), East End Pool redevelopment (2008), Berens Park renovation (2004), Courts Plus expansion (2003), Norman P. Smalley Pool (2000), Safety Town (1999). • Environmental Protection Agency and Chicago Wilderness Conservation Native Landscaping Award (2002). • Willowbrook Wildlife Foundation Blazing Star Award (2004). • National Recreation and Park Association: Healthy Community Award, Best Recreation Catalog Award, and Best Overall Communicator (2001). • The International Awards for Livable Communities Second in the World for Nations in Bloom (2000). • Special Kids Day Award (2013).

Elmhurst Park District History: The Elmhurst Park District was established on June 5, 1920 to meet the leisure and recreational needs of the community. Soon thereafter, negotiations were opened for the acquisition of the Wilder estate. The estate consisted of an undeveloped cow pasture to the north and the family home, gardens and clay tennis courts to the south. Original development of the gardens had begun much earlier in 1868 by Seth and Elizabeth Wadhams, who built their home, known as White Birch, along with a greenhouse and gardens. They planted numerous trees representing a variety of species to create a true garden spot in Elmhurst. The Park District acquisition of the Wilder property occurred in 1921, making it the first public park in Elmhurst. The Park District added the conservatory to the greenhouse in 1924, and the Wilder Park Conservatory then opened to the public.

19 2018 BUDGET: BUDGET CHARTS AND PROFILE

In the late 1920s and early 1930s, three new parks were established at Salt Creek, East End and Butterfield. The original East End Pool opened on June 26, 1937 with a “Grand Splash” of 750 youths who had lined up along the edge of the pool in readiness for its big moment. The pool was an immediate success for the District, with 1,200 people showing up on its second day. The first recreation programs were offered for children in 1942 and included baton, handicrafts, archery, baseball and ballet. The early 1950s saw additional growth for the District as the Ben Allison Playground and Eldridge Park were opened. The Abbey was also established during this period as a place for teenagers to gather, but did not become part of the Park District until 1964. During the decade of the 1960s, seven new parks were opened, including the York Commons Pool which was dedicated in 1967.

Perhaps the most significant decade in the Park District’s history was the 1970s, when the District blossomed into a full-service agency. In 1971, voters approved a $3.9 million bond referendum for land acquisition and development. The majority of the District’s present land was purchased during this time, along with new park development. Five new special facilities were also opened during this period. The Courts, an indoor tennis, racquetball and handball facility, opened in 1972. Sugar Creek Golf Course was the result of collaboration in the early 1970s between the Elmhurst Park District and the Village of Villa Park who shared in the land acquisition and construction costs. The first Elmhurst Community Center opened its doors in 1979 at Eldridge School, leased from the School District. The Abbey Leisure Center opened its doors on St. Charles Road for senior citizen leisure programming in 1975 in recognition of this growing segment of the community’s population. The Depot on York Road was acquired from the Chicago and Northwestern Railroad in 1971 and renovated by the Park District as a bicentennial project in 1975.

The 1980s and 1990s constituted a period of redevelopment and continued partnerships with other agencies. The Courts Plus expansion in 1990 provided an important collaboration with Elmhurst Memorial Health Care to provide fitness, rehabilitation, and health programs for the community. In 1992, the District won the coveted National Gold Medal Award presented to outstanding park and recreation agencies.

On September 6, 2003, the Elmhurst Park District opened the Joanne B. Wagner Community Center. This facility filled a great need for the community by providing a venue for indoor programming that is owned by the District. The redevelopment and opening of Berens Park and The Hub in 2004 came just in time for the District’s 85th anniversary. In 2003, the new Elmhurst Public Library opened at the north end of Wilder Park following a land exchange agreement with the District and the City of Elmhurst and in 2007, the District received the keys to Wilder Mansion from the City (former Library), making its ownership official. The original 1860 home was remodeled without compromising the historic architectural features and provides an additional 14,000 square feet of multi-use space for the community.

Overview of the City of Elmhurst: Elmhurst is a community that is rich in culture and history, dating back to its settlement in the 1840s. While the suburbanization of Chicago encompassed Elmhurst and many other regional communities, Elmhurst clearly developed as a community with its own distinct heritage and image, casting aside its suburban label. Celebrating its 133rd year, Elmhurst is a highly livable and sustainable community that has its own symphony orchestra, art museum, historical museum and various other cultural offerings that appeal to residents and visitors alike. Located approximately 16 miles west of the Chicago Loop, Elmhurst is easily accessible via highway and rail. Interstates 294 and 290 intersect on the City’s east side, providing both north-south and east-west access that links with the City of Chicago to the east and O’Hare Airport 12 miles north. The community is served by commuter rail on Metra’s Union Pacific West Line, with a station stop in the heart of Downtown Elmhurst. The City of Elmhurst has a healthy business and industry base, with numerous retail business areas outside the downtown area. The City is also home to three industrial parks located in the perimeter areas of the community.

Elmhurst has already realized the growth pressures of the past several decades, and is in a period of very slow growth that is fueled largely by redevelopment. In the past two decades, numerous older homes and commercial buildings have been demolished to make way for new larger homes or townhouse/condominium

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developments. According to the Chicago Metropolitan Agency on Planning, the population of Elmhurst is projected to grow to 43,075 by the year 2030, an increase of less than one percent. The 2010 Census illustrates that this number has already been surpassed with 44,121 as the City of Elmhurst population and a projected population of 46,387 in 2018. Elmhurst offers its residents the conveniences and amenities that come with having access to one of the largest major metropolitan areas in the country, while providing its own services, character and amenities that provide a high quality of life for residents.

For additional economic and demographic data on the City of Elmhurst and the Elmhurst Park District refer to the charts on the following pages. Below is a map of District properties.

ELMHURST PARK DISTRICT MAP

21 2018 BUDGET: BUDGET CHARTS AND PROFILE

Demographic and Economic Statistics – Last Ten Fiscal Years - December 31, 2016 (Unaudited)

Per Total Capita Fiscal Personal Personal Unemployment Year Population* Income Income Rate **

2007 43,298 $1,386,185,470 32,015 3.20%

2008 43,298 $1,386,185,470 32,015 4.20%

2009 43,298 $1,386,185,470 32,015 7.40%

2010 44,121 $1,843,772,469 41,789 8.30%

2011 43,934 $1,883,758,118 42,877 7.60%

2012 44,385 $1,895,505,810 42,706 7.20%

2013 44,745 $1,941,798,765 43,397 7.20%

2014 45,105 $2,052,954,075 45,515 5.40%

2015 45,469 $2,150,638,231 47,299 4.50%

2016 46,367 $2,193,112,733 47,299 4.70%

Data Sources: * U.S. Census Bureau and American Community Surveys **Illinois Department of Employment Security - Annual Average

Principal Employers – Current and Nine Fiscal Years Ago- December 31, 2016 (Unaudited)

2016 2007 Employees as Employees as a Percentage a Percentage of District of District Employer EmployeesRank Population EmployeesRank Population

Edwards-Elmhurst Healthcare 2,173 1 4.68% 2,400 1 5.54% Elmhurst Comm School District #205 1,158 2 2.50% 850 2 1.96% McMaster-Carr Supply Co. 850 3 1.83% 850 3 1.96% Elmhurst College 600 4 1.29% 500 5 1.15% Duchossois Industries Inc/Chamberla 450 5 0.97% 300 8 0.69% Chamberlin Group Inc. 350 6 0.75% 350 6 0.81% Sterling Engineering, Inc. 320 7 0.69% 320 7 0.74% Patten Industries 275 8 0.59% 700 4 1.62% Laboratory Corp. of America 250 9 0.54% Superior Sound, Inc. 250 10 0.54% Hassett Air Express 300 9 0.69% S & S Automotive Inc. 300 10 0.69%

Total 6,676 14.39% 6,870 15.87%

Total Population 46,387 43,298

Data Source: City of Elmhurst and American Community Surveys 22 2018 BUDGET: BUDGET CHARTS AND PROFILE

Principal Property Tax Payers – Current Year and Nine Years Ago – December 31, 2016 (Unaudited)

2015 Tax Levy 2006 Tax Levy Percentage of Percentage of Total District Total District Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value

Three Galleria Tower $ 17,472,610 1 0.85% McMaster Carr Supply Co 14,503,310 2 0.71% $ 16,666,170 1 0.82% SCG Ovaltine Ct LLC 13,665,300 3 0.67% Federal Construction LLC 10,485,130 4 0.51% 12,852,720 3 0.63% Royal Management Corporation 7,355,960 5 0.36% Horizon Group VIII LLC 5,765,330 6 0.28% 4,798,400 9 0.23% Korman/Lederer & Associates 4,984,640 7 0.24% 8,403,780 5 0.41% 678 North York St LLC 4,646,820 8 0.23% Elmhurst Memorial Healthcare 4,403,570 9 0.22% 7,577,280 6 0.37% VIP Elmhurst II LLC 4,396,570 10 0.21% 4,941,930 8 0.24% Patten Tractor & Equipment 4,676,930 10 0.23% AIMCO 12,918,660 2 0.63% Deloite & Touche LLP 8,822,850 4 0.43% Lexington Square 6,184,670 7 0.30%

87,679,240 4.29% 87,843,390 4.30%

23 2018 BUDGET: BUDGET CHARTS AND PROFILE

Capital Asset Statistics - December 31, 2016 (Unaudited)

Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Parks and Recreation Parks Total Acreage 462 462 462 462 463 463 463 463 463 464 Number of Parks 28 28 28 28 28 28 28 28 28 28 Facilities (Number) Playground 18 18 18 18 18 18 18 18 18 18 Indoor Swimming Facilities 1 1 1 1 1 1 1 1 1 1 Outdoor Swimming Facilities 2 2 2 2 2 2 2 2 2 2 Sprayground 1 1 1 1 1 1 1 1 1 1 Miniature Golf 1 1 1 1 1 1 1 1 1 1 Conservatory/Museum 1 1 1 1 1 1 1 1 1 1 Lagoon 1 1 1 1 1 1 1 1 1 1 Outdoor Skating Area 1 1 1 1 1 1 1 1 1 1 Cross Country Ski Trails 2 2 2 2 2 2 2 2 2 2 Community Center 1 1 1 1 1 1 1 1 1 1 Football/Soccer Fields 26 26 26 26 26 26 26 26 26 26 Ball Diamonds 28 28 28 28 28 28 28 28 28 28 Climbing Wall 1 1 1 1 1 1 1 1 1 1 Racquetball Courts 3 3 3 3 3 3 3 3 3 3 Tennis Courts-Indoor 6 6 6 6 6 6 6 6 6 6 Tennis Courts-Outdoor 27 27 27 27 27 27 27 27 27 27 Picnic Areas 12 12 12 12 12 12 12 12 12 12 Outdoor Basketball Courts 13 13 13 13 13 13 13 13 13 13 Sled Hill 4 4 4 4 4 4 4 4 4 4 Café/Concession Stands 6 6 6 6 6 6 6 6 6 6 Roller Hockey Courts 3 3 3 3 3 3 3 3 3 3 Skateboard Park 1 1 1 1 1 1 1 1 1 1 Community Garden 1 1 1 1 1 1 1 1 1 1 Senior Center 1 1 1 1 1 1 1 1 1 1 Health and Fitness Center 1 1 1 1 1 1 1 1 1 1 Walking/Biking Trails 5 5 5 5 5 5 5 5 5 5 Historical Structure - 1 1 1 1 1 1 1 1 1 Synthetic Turf Fields - 2 2 2 2 2 2 2 2 2

Data Source: District Records

24 2018 BUDGET: LONG-RANGE PLANNING

Comprehensive Plan and Strategic Plan

In 2016-17, the Board of Park Commissioners and staff updated the District’s Comprehensive and Strategic Plans using a process that included gathering and reviewing community and staff feedback and assessments of parks, facilities, and programs to analyze the state of the District, creating the community’s future vision of park and recreation services and developing an action plan to implement that vision. By basing each Plan on community feedback and defining priorities, the Board can prepare for future community desires and needs along with clarifying organizational direction for focused decision making. Since the inception of the District’s first Comprehensive Plan and Strategic Plan, the Board and staff have selected and implemented projects, programs, and initiatives based upon the priorities articulated during the planning process.

Development of Vision 2020 Plan

Overview: From fall 2016 to spring 2017, the Board and staff undertook the Vision 2020 process to update the District’s 2007 Comprehensive Plan and 2013-17 Strategic Plan. While a Comprehensive Plan and a Strategic Plan are unique in their purpose and scope, they have interrelated goals and development processes and for this reason, the Board and staff developed both plans during one process and combined them into one, overall guiding document and action plan. As a result, the Vision 2020 Plan incorporates strategic planning initiatives, which are internal operation, communication, and administrative improvements with a three-year timeline and one-year action plan and comprehensive planning initiatives, which are physical asset, program, and services focused with a ten-year timeline and five-year action plan.

Planning Process Phases: Organized into four phases as described below, the Vision 2020 planning process consisted of the following components: a needs assessment; visioning; identifying and evaluating community needs, priorities, and opportunities; and creating a phased implementation and financial plan.

Engage: The first phase included conversations with and input from a wide variety of community stakeholders and employee groups to gain an understanding of needs and priorities and to communicate the purpose of and how they could be actively engaged in the process. The forums for collecting feedback during this phase included community open houses, scientific and online surveys, focus groups, interviews, etc.

Analyze: During the second phase of the planning process, a comprehensive needs analysis was developed based on data collected about the District and the region, including an inventory and assessment of parks, open space, trails, recreation facilities, and program offerings along with demographic, recreation trends and level of service analyses.

Envision: During the third phase, the Board and staff created a shared long-term vision for the District based on the Engage and Analyze phase results, including key findings and strategic themes and goals to address those findings. Alternative strategies for programming and existing and new parks, facilities, and open spaces were evaluated, and refined into a set of strategies and recommendations that the District could address in the future to implement strategic themes and goals.

Implement: In the final phase of the planning process, the Board and staff refined action items based on the near-and mid-term capital and operational strategies and recommendations developed during the Envision phase. These action items were outlined in a Five-year Strategy Action Plan and one-year implementation plan. In July 2017, the Board approved the final Vision 2020 Plan document, which included a summary of the Vision 2020 feedback collected, needs assessment, and key findings and recommendations that will drive long-range planning for the next three to five-years.

25 2018 BUDGET: LONG-RANGE PLANNING

District Strategy

As part of the Vision 2020 Process, the Board and staff reviewed and updated the District’s existing mission and vision statements and established District values to serve as the guiding force for the creation of District strategy. Then, staff participated in collaborative workshops to identify organizational strengths, weaknesses, opportunities, and threats and brainstorm the key priorities for the next three to five years. These key priorities provided the framework for developing strategic themes, which are broad macro-oriented statements of organizational direction. Staff then developed three to five-year goals (broad statements describing what the District must achieve to execute strategy) and one to two- year tactics (programs, activities, projects or actions) to outline what needs to be accomplished to address the strategic themes and drive what specific actions will be undertaken to implement them. The themes, goals, and tactics reflect Vision 2020 findings and recommendations and will focus the Board’s and staff’s decision making and allocation of resources towards implementation of District strategy. After Board approval of the Vision 2020 Plan in July 2017, staff integrated the themes, goals, and tactics into a vision/action matrix, adding cost ranges, timelines, staff responsibilities, and implementation goals for each tactic. To report ongoing tracking of the implementation status of each tactic, the matrix also includes a column to report progress. This matrix became the District’s 2018 Strategic Work Plan (SWP) (described in the next section), which is developed annually to guide and track implementation of long- range plans. In December 2017, performance measures, tied to the strategic themes will also be developed to track progress on addressing overall Plan strategy.

Mission, Vision, and Values

Strategic Themes

Goals

Measurements

Tactics

26 2018 BUDGET: LONG-RANGE PLANNING

2018 Strategic Work Plan

Developed by staff and approved by the Board annually, the 2018 SWP outlines the broad themes and goals and specific tasks to implement the Vision 2020 Plan. To facilitate ongoing tracking of this strategy, staff utilized the vision/action matrix described in the previous section to create the proposed 2018 SWP. The new SWP format includes an overview of the District Mission, Vision, Values, Themes, and Goals and the detailed action plan for each 2018 tactic (see pages 28 and 29). The detailed action plan for addressing each 2018 tactic includes the goals and values addressed, cost range, timeframe, Department/staff responsibilities, and implementation goal. To remain relevant and timely, tactics to address the themes and goals are short-term (one to two years), and the SWP only includes the tactics to be addressed in the first year of the Vision 2020 Plan. Ongoing and Department projects/initiatives for 2018 are included in function work plans in the Expenditures by Function section of this document.

Monitoring the Strategic Work Plan

As part of the Board’s governance and to ensure that this Plan remains relevant and effective as a long- range planning tool and is responsive to the community’s changing needs, the staff and the Board review the SWP annually so it evolves based on ongoing shifts, opportunities, and challenges in the District’s operating, economic, and political environments. For example, changes occur and new opportunities develop based on decisions made or agreements finalized by or with other organizations that necessitate updating tactics or adding new ones along with adjusting timelines. Staff also undergo this review to ensure that the SWP is aligned with the Vision 2020 Five-year Strategy Action Plan so that future long- range planning goals are considered for the coming year.

As in previous years, the SWP review occurs prior to preparing the budget so that adequate resources can be allocated to address the Plan’s priorities. Staff also evaluate the financial implications of each of the tactics to assist with forecasting the long-term resources needed to implement the Plan. The Board reviewed and reached consensus on the proposed 2018 SWP at its August 28, 2017 meeting and formally approves the SWP in December as part of the final budget document.

In addition, the Board and staff monitor and report progress on the SWP bi-annually (in the Board’s Mid- year and Year-end Progress Reports) to track the status of the overall achievement of Plan Themes. The Board reports the status of long-range plans in the District’s Annual Report document so that the community is informed about the impact of the Plan.

27 2018 BUDGET: LONG-RANGE PLANNING

Vision 2020 2018 Strategic Work Plan Mission, Vision, Values, Themes and Goals

Mission We enrich lives while having fun.

Vision To be a national leader in providing memorable parks and recreation experiences to our community.

Values

Fun We will inject fun and passion in what we do everyday. Integrity We will always do the right thing and we will do it the right way. Customer Service Excellence We will exceed customer expectations consistently and present the ‘wow’ moment. Community Focused At the end of the day, it’s all about the community we serve. Themes Goals PA1: Maintain and update existing parks, open space, and amenities. PA PARKS PA2: Address open space and amenity deficiencies and equitability. Meet community need for parks, open space, and outdoor amenities. PA3: Provide new recreational opportunities to respond to community needs.

FA FA1: Maintain and update existing facilities. FACILITIES FA2: Invest in new indoor facilities / space to respond to community Meet community need for new and needs. existing indoor recreation space. FA3: Optimize use of our existing facilities.

PR PR1: Remain aware of and responsive to trends. PROGRAMMING PR2: Regularly engage the community to understand their needs. Innovative programing to meet PR3: Provide sustainable, high quality and inclusive program offerings. community needs.

CO CO1: Foster a “customer-first” environment. COMMUNICATIONS CO2: Address customer service staffing needs. Exceptional and consistent guest experience.

FI FI1: Review and improve cost recovery. FINANCE FI2: Seek alternate sources of revenue. Sustainable revenues strategies FI3: Consider pursuing General or Recreation Fund referendum. and funding options. IO1: Continue to invest in training, continuing education, and personal development. IO IO2: Improve internal communication. INTERNAL OPERATIONS IO3: Improve employee benefits. Employee growth and development. IO4: Become a more data-driven organization. IO5: Increase focus on Districtwide succession planning.

28 2018 BUDGET: LONG‐RANGE PLANNING

VISION 2020 2018 STRATEGIC WORK PLAN Year 1 Timeframe Department / Staffing Theme Goals Tactics EPD Values Cost Duration Anticipated Start Anticipated Completion Reporting Lead Staff Groups Implementation Progress

Community Focused, Director of Parks & Conduct community outreach, design and engineer, bid, and PA PA1 1.1a Update Conrad Fischer Park. $$$ January 2018 November 2018 Semiannually Parks & Facilities Customer Service Excellence Facilities construct by December 2018.

Community Focused, Director of Parks & PA PA1 1.1a Replace Berens Park Two Synthetic Turf Fields $$$$ January 2018 November 2018 Semiannually Parks & Facilities Remove and replace carpet on two synthetic turf fields. Customer Service Excellence Facilities

Conduct site feasibility study and community outreach in 2017 and Executive Director, Director PA PA1, PA2 3.1: Build dog park. Fun, Community Focused $$$ July 2017 December 2018 Semiannually Admin, Parks & Facilities 2018 and master plan, design and engineer, bid, and construct by of Parks & Facilities 2019. Admin, Facilities, Recreation, 3.1: Finalize future of small recreation and 225 Prospect buildings Community Focused, Executive Director, Director Based on data collected and public input, determine next steps for FA FA3, PR1, PR 3 $ January 2017 June 2018 Semiannually Finance, Marketing & based on evaluation of preschool business model. Customer Service Excellence of Recreation optimizing the use of these buildings. Communications Community Focused, Admin, Parks & Facilities, Based on data from completed assessment, determine best use of FA FA2, PR1, PR2 2.1: Determine future of Palmer Drive site / building. Customer Service Excellence, $July 2017 April 2018 Semiannually Executive Director Recreation facility. Integrity

Community Focused, Executive Director, Board Based on prior planning reports and community feedback, FA FA2, PR1, PR3 2.2a: Determine approach to indoor sports facility. $ September 2017 June 2018 Semiannually Management Team Customer Service Excellence of Park Commissioners determine next steps for addressing indoor sports facility needs.

Directors of Recreation, Fun, Community Focused, Recreation, Enterprise, PR PR1, PR2, PR3 3.1: Offer programs identified as high priorities in Community Survey. $ January 2018 December 2020 Seasonally Enterprise Services, Parks Offer at least one new program from the high priorities seasonally. Customer Service Excellence Facilities and Facilities

Customer Service Excellence, Director of Marketing and Institute Customer Service Model, including staff recognition CO CO1 1.1: Establish district‐wide customer service model. $ January 2018 June 2018 Semiannually Customer Service Team Community Focused, Fun Communications program and customer feedback approach.

Director of Marketing and 2.2: Optimize staffing structure to provide exceptional customer Customer Service Excellence, CO CO1, IO1 , IO2 $ September 2018 March 2019 Annual Communications, HR Customer Service Team Implement new staffing structure by Spring 2019. service. Integrity Division Manager

Executive Director, Board FI FI3 3.1: Determine approach to referendum (e.g. hire firm). Integrity, Community Focused TBD September 2017 June 2018 Ongoing Management Team Determine referendum strategy by June 2018. of Park Commissioners

1.2: Analyze cost recovery data to ensure future financial Director of Finance & Recreation, Enterprise, Establish cost recovery analysis and reporting provided District‐ FI FI1 Integrity, Community Focused $ September 2017 September 2018 A nnually sustainability. Human Resources Facilities wide.

Director of Finance & Recreation, Enterprise, Meet cost recovery goals with annual review and update of cost FI FI1 1.1: Implement cost recovery goals. Integrity, Community Focused $ January 2018 December 2020 A nnually Human Resources Facilities recovery model, as necessary.

Integrity, Customer Service Strategy & Planning Chose and utilize dashboard software based on an assessment of IO IO4, IO5 4.1: Implement dashboard software. Excellence, Community $$ July 2018 June 2019 A nnually Management Team Coordinator data to be tracked and the best fit software options. Focused

IO IO3 3.1: Implement 2017 Compensation Study. Integrity $$$ September 2017 January 2018 A nnually Executive Director Finance & HR Implement Compensation Study recommendations.

Consider and implement part‐time benefit changes based on IO IO3 3.2: Expand benefits offered to part‐time staff. Integrity $ September 2017 March 2018 Semiannually Division Manager HR Admin, HR Vision 2020 Plan and part‐time staff focus group feedback.

Fun, Customer Service Strategy & Planning IO IO1 1.1: Establish District‐wide training plan for all levels of staff. Excellence, Community $ June 2018 December 2018 Semiannually Division Manager HR Develop District‐wide training plan based on Vision 2020 feedback. Coordinator, Task Force Focused, Integrity

TABLE LEGEND / KEY TIMEFRAME / DURATION PROGRESS COST ≤ 6 months (0) Started (10) 6 months ‐ 1 $ $0‐$25,000, including staff time year (25) Ongoing (50) $$ $25,001‐$99,999 1‐3 years (50) Completed (100) $$$ $100,000‐$499,999 3‐5 years (75) Delayed / Stopped (0) $$$$ > $500,000 ≥ 5 years (100)

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30 2018 BUDGET: LONG-RANGE PLANNING

Performance Measurement

Performance measurement provides data to complement decision making, improve performance, communicate progress, and provide accountability. To address Government Finance Officers Association’s (GFOA) best practice of using performance measures as a link to budget and planning processes, the purpose of the District’s performance measurement program has been to support strategic planning and goal setting, improve/enhance service delivery and customer service, evaluate effectiveness and efficiency of operations, strengthen accountability, communicate results of programs and services and provide better information for effective decision-making including resource allocation. When the measures are aligned with organizational priorities, the Board and staff can use the data to make improvements, validate current practices, evaluate operations and assist with determining budget priorities that reflect the long-range plans.

The Management Team annually reviews, refines, and adds measures for tracking the impact of implementing long-range plans. Based on this review, staff compiled the chart below (for the final year of the 2013-17 Strategic Plan), which illustrates the measures that are or will be tracked and reported semi- annually and/or annually in the Board’s Strategic Plan Progress Report. As staff begins implementation of the Vision 2020 Plan, many of these measures will be refined to effectively monitor implementation of the new strategic themes, including adding measures based on the data collected and standards used during the Vision 2020 process (e.g. organizational culture survey, park and program assessments, etc.).

Performance Measure Performance Target Reporting

Customer Centered Theme Program Success Rate 80% or higher Semi-annually Total Unique Registrants 8,800 Semi-annually % of Program and Pass Registrants by Age Group To be determined Semi-annually % of Unique Resident Households Completing a Transaction 50% Semi-annually Fiscal Agility Theme Percent of non-tax revenue 60% or higher Annually Met Reserve Targets - 1st Tier Met Reserve Policy Targets Annually Met Reserve Targets - 2nd Tier Met Budget Target Annually Average dollar of round per golfer Higher than previous six-year average Annually Capital Assets Condition Ratio 50% Annually Debt Service Ratio 20% Annually Program Revenue Per Unique Registrant $500 Semi-annually Fund Balance as a percentage of expenditures Met Fund Balance Policy Annually Percent of profit earned-Courts Plus 15% Annually Cost Recovery Goals Met Cost Recovery Goals Annually Improvement through Collaboration and Innovation Theme Percent of full-time staff involved in cross-functional teams 75% or higher Semi-annually IPRA Environmental Report Card Results 80% Annually Satisfaction with internal communications and internal services To be determined Annually Borderless Satisfaction Survey To be determined Annually Continuous Improvement through an Empowered Team Theme Percent of full-time employees utilizing continuing education 80% or higher Semi-annually Employee satisfaction To be determined Annually Training program satisfaction To be determined Annually

For the budget, staff also develop objective measures for monitoring progress toward accomplishing the mission and work plans for each District function (see the Expenditures by Function section in this document). These measures are also a work in progress and will be enhanced in 2018 to include additional efficiency and effectiveness measures that focus on results rather than inputs. 31 2018 BUDGET: LONG-RANGE PLANNING

Long-range Budget Plan

Staff develop a Long-range Budget Plan that projects the District’s financial condition for the next six years. Along with the Capital Improvement Plan, the Long-range Budget Plan ensures that the District has the resources necessary to implement long-range goals and meet community needs as articulated in the Vision 2020 Plan. Using this Plan, the Board can assess the long-term financial implications of current and proposed policies, programs, personnel, capital projects and debt, and decide on a course of action to achieve District priorities. More specifically, the long-range forecasting of revenues and expenditures in one document achieves the following:

• Provides an understanding of available funding. • Evaluates financial risk. • Assesses the level at which services can be sustained. • Assesses the level at which capital investments can be made. • Identifies future commitments and resource demands. • Identifies the key variables that cause changes in revenue levels.

Methodology: Prior to developing the 2018 Budget, the Management Team reviewed the assumptions for projecting future revenues and expenses (listed on pages 33-4). Using conservative assumptions, staff compared prior year trends, projected long-range Capital Improvement Plan figures and future debt obligations against the 2018 Budget to develop budget projections for 2018 to 2023. This Plan is a work in progress, as it must be regularly monitored and periodically updated to reflect changing economic conditions and organizational priorities.

Long-range Budget Analysis:

Estimated Projected Long Range Budget Plan 2016 2017 2018 2019 2020 2021 2022 2023 Actual Budget Budget Budget Budget Budget Budget Budget Revenue 19,735,985 21,465,309 21,017,523 19,391,164 19,630,228 19,951,397 20,269,878 20,326,036 Expenses* 14,159,055 15,362,658 15,819,801 16,123,983 16,454,913 16,790,868 17,138,097 17,472,400

Net Operating Difference 5,576,930 6,102,651 5,197,722 3,267,181 3,175,315 3,160,529 3,131,780 2,853,636

Capital 3,925,362 4,355,030 3,406,361 5,249,854 3,030,803 2,039,405 1,525,750 1,598,265 Debt Service/Transfers 2,567,443 2,814,458 3,880,204 2,333,954 2,342,870 2,355,653 2,368,277 1,962,706 Net (915,875) (1,066,837) (2,088,843) (4,316,627) (2,198,358) (1,234,529) (762,247) (707,335)

* Except Capital and Transfers Projected Long-range Budget Plan (summary)

2013 in chart above should be 2023 As illustrated in the chart above, staff project surpluses in the operating budgets for 2018 through 2023. When capital and transfer expenses are included in the projections, the District’s net total budgets exhibit a deficit. The projected deficits are due to park redevelopment, facility upgrade projects, land acquisition, and major development proposed in the Long-range Capital Plan from 2018 to 2023. The District must continue to utilize and build reserves and pursue outside funding opportunities to fund capital budget needs or make spending adjustments in the operating and capital budgets.

32 2018 BUDGET: LONG-RANGE PLANNING

An overview of the Plan detail is below:

Estimated Projected Long Range Budget Plan 2016 2017 2018 2019 2020 2021 2022 2023 Actual Budget Budget Budget Budget Budget Budget Budget Revenues Taxes 7,971,806 7,997,905 8,340,245 8,352,165 8,364,205 8,447,847 8,532,325 8,617,649 Donations, Advertising, Scholarships 458,493 187,590 397,150 71,750 71,750 71,750 71,750 71,750 Grants 406,265 1,100 1,100 1,100 1,100 1,100 1,100 1,100 Program Fees 4,356,372 4,440,626 4,573,279 4,699,974 4,830,278 4,964,296 5,102,138 5,243,916 Rentals 753,351 816,688 768,674 780,779 793,153 805,806 818,748 831,987 Passes, Memberhips, Daily Uses 3,722,420 3,947,120 3,976,558 4,035,502 4,095,349 4,156,112 4,217,807 4,280,447 Merchandise Sales 307,249 318,632 321,070 322,062 323,068 324,089 325,124 326,173 Transfers 977,654 866,564 1,895,989 384,934 384,584 385,467 386,305 282,588 Bond Proceeds 724,422 2,868,584 698,958 720,898 744,741 772,930 792,581 648,425 Interest 57,953 20,500 44,500 22,000 22,000 22,000 22,000 22,000 Total Revenues 19,735,985 21,465,309 21,017,523 19,391,164 19,630,228 19,951,397 20,269,878 20,326,036

Expenses Salaries & Wages 7,511,205 8,076,145 8,488,474 8,658,243 8,831,408 9,008,037 9,188,197 9,371,961 Services 5,134,496 5,572,702 5,596,305 5,664,125 5,752,370 5,842,202 5,933,504 6,026,270 Repairs 206,750 244,720 235,220 243,226 251,557 260,229 269,255 257,296 Supplies 1,306,604 1,469,091 1,499,802 1,558,388 1,619,577 1,680,401 1,747,141 1,816,872 Total Operating Expenses 14,159,055 15,362,658 15,819,801 16,123,983 16,454,913 16,790,868 17,138,097 17,472,400

Net Income (except Capital and Transfers) 5,576,930 6,102,651 5,197,722 3,267,181 3,175,315 3,160,529 3,131,780 2,853,636

Capital 3,925,362 4,355,030 3,406,361 5,249,854 3,030,803 2,039,405 1,525,750 1,598,265 Debt Service/Transfers 2,567,443 2,814,458 3,880,204 2,333,954 2,342,870 2,355,653 2,368,277 1,962,706

Total Expenses (Operating, Capital and Debt) 20,651,860 22,532,146 23,106,366 23,707,791 21,828,586 21,185,926 21,032,124 21,033,371

Net (915,875) (1,066,837) (2,088,843) (4,316,627) (2,198,358) (1,234,529) (762,247) (707,335)

Long-range Budget Assumptions: Staff uses the following assumptions to prepare revenue and expense projections for the Plan.

Revenues • Taxes - In all funds except Debt Service, the average rate used in 2019 and 2020 is 0% due to the proposed 2-year tax freeze legislation at the State of Illinois. 2021-2023 is 1.0%; Debt Service Fund – 1% all years. Tax revenue is allocated across funds to maintain revenues over expenses and keep cash and investment targets achievable. • Donations, Advertising, and Scholarships - These line items are consistent with 2018 budget figures. • Grants - Projected based on any known awarded grants for 2018. • Program Fees - Recreation Fund increases are 2.5%; Enterprise Services Fund increases are 3.5%; Sugar Creek Golf Course fees increase by 2.0%. • Rentals - General Fund increases are 1.0%; Recreation Fund increases are 5.0%; Enterprise Services increases are 1.5%; Sugar Creek Golf Course Fund increases are 1.0%. • Passes, Memberships, Daily Uses - Recreation Fund increases are 2.0%; Enterprise Services Fund increases are 1.5%; Sugar Creek Golf Course Fund increases are 1.0%. • Merchandise Sales - General Fund increases are 2.0%; Recreation Fund increases are 0.5%; Enterprise Services Fund and Sugar Creek Golf Course Fund are projected to remain flat. • Transfers - Projected to be lower in the next five years but consistent. Transfers required for debt payments are based on the payment schedule.

33 2018 BUDGET: LONG-RANGE PLANNING

• Bond Proceeds - Remain constant with the annual rollover G.O. Bond with slight increases due to bond tax levy increases and low interest rates. • Interest - Projected at fairly stable dollar amounts based upon current levels with planned spending down of cash and investment dollars (resulting in less reserves being available to invest).

Expenses • Salaries and Wages - Wage increases are 2.0% across all Funds. • Contractual Services - Increases for Services vary by individual line items. Increases for health care are 2%; IMRF and FICA increases are driven by a 2.0% increase in wages; Park District Risk Management Agency insurance increases by 1.5%; Audit fees increase by 3.0%; Utilities increase by 2%; Program expenses in the Recreation Fund are projected to remain flat; Program expenses in Special Recreation Association Fund and Enterprise Services Fund increase by 2.0%; Miscellaneous line items increase by 1.0%. • Repairs and Supplies - Increases are 5.0%. • Capital - Capital amounts are based on the District’s Long-range Capital Plan.

Future assumptions will be evaluated based on economic trends over a specific time period to ensure that the Long-range Budget Plan remains relevant and realistic.

34 2018 BUDGET: LONG-RANGE PLANNING

Cash and Investments and Fund Balance Analysis

The District maintains reserves for the Board to have funds available to meet emergency operating needs, maintain the District’s capital assets and remain proactive with addressing future needs as established in the Vision 2020 Plan. Overall, the projections for cash and investments available on December 31, 2017 and 2018 provide approximately six months of savings to operate the District in the event of an unplanned emergency based on the District’s average spending per month. Furthermore, as illustrated in the 2018 Cash and Investment Summary chart below, for the twelve months ending December 31, 2018 all funds are projected to meet or exceed the first-tier unanticipated emergency cash flow targets established by the Board, except for Sugar Creek Golf Course Fund. If, at the end of a fiscal year, cash and investments fall below the reserve requirements, the Executive Director must prepare and submit a plan for expenditure reductions and/or revenue increases to make the funds whole.

For the tenth year, the $300,000 target balance for the Sugar Creek Golf Course Fund is underfunded due to the spending of income to pay the debt to redevelop the clubhouse, make course improvements and purchase and develop the driving range. The 2018 proposed budget for Sugar Creek Golf Course Fund is projected to have a net budget surplus of $27,743 (revenues minus expenses) in an effort to minimize the reserve deficiency. Staff continue to critically review spending while maximizing revenue. A copy of the Board’s policies on reserves is on page 49.

2018 Cash and Investment Target Summary

Proposed 2018 2018 Proposed Tier 1 Target Will the 2017 Proposed Proposed 2018 2018 2018 2018 Budget Amt Cash & Budgeted Budgeted Cash & Fund/Dept. target be Over (Under) Fund/Department Investments Revenues Expenses Investments Target % Target met? Target General 2,932,140 3,862,856 4,044,755 2,750,241 35% 1,415,664 YES! 1,334,577 Recreation 2,934,976 5,491,145 6,237,717 2,188,404 10% 623,772 YES! 1,564,632 Enterprise Svcs 2,770,159 4,664,293 5,010,668 2,423,784 15% 1,951,600 YES! 472,184 IMRF 210,963 451,958 410,097 252,824 50% 205,049 YES! 47,776 FICA 420,342 215,580 409,176 226,746 50% 204,588 YES! 22,158 Liability Insurance 258,643 48,492 255,390 51,745 10% 25,539 YES! 26,206 Audit 52,105 53,809 53,717 52,197 50% 26,858.50 YES! 25,339 SRA 333,146 729,672 693,764 369,054 25% 173,441 YES! 195,613 Museum 198,199 300,412 299,981 198,630 25% 74,995 YES! 123,635 Sugar Creek 29,518 1,095,149 1,067,406 57,261 300,000 No (242,740) Total - - 3,569,379 Early Bond Repayment 35,900 - 35,900 - Debt Service 138,747 1,853,920 1,844,400 148,267 Paving & Lighting 51,188 90,234 139,987 1,435 Capital Improvement 658,967 2,160,003 2,603,408 215,562 Restricted Capital Improvement 149,114 - - 149,114

IT Cash 23,566 23,566 11,197,672 - - 9,108,829

35 2018 BUDGET: LONG-RANGE PLANNING

Replenishment of Cash and Investments and Reserve Target Policy The first tier cash and investment targets are the reserve targets for unanticipated emergencies and revenue shortfalls as illustrated on the 2018 Cash and Investment Summary chart on the previous page. The target levels are based upon a percentage of expenses, a flat dollar amount or a combination of a percentage of expenses and dollar amount and are established by reviewing the unique nature of cash flows for each fund. In 2007, the Board passed a policy to create a second tier target for meeting projected capital expenses and paying outstanding debt that is over and above the funds needed to meet the first-tier targets established for each fund (see page 49 for the Board’s Reserve Policy). This policy provides the Board the ability to maintain the District’s healthy financial condition through careful long- range financial planning and, as a result, avoid having to reduce services, personnel or maintenance to fund capital projects unless economic conditions warrant making these types of reductions to the budget. For example, the building of reserves resulted in the Board’s ability to complete the Wilder Park Conservatory and Horticulture Complex Renovation project in 2013-14 without jeopardizing the financial condition of the District (reserves were spent down to fund 75% of the project cost that was reimbursed at project completion by the Illinois Park and Recreation Facility Construction grant and to cover the other 25% not funded by the grant). More recently, in 2016, the grant reimbursement was utilized to fund a significant portion of the Butterfield Park redevelopment.

The second tier target is determined annually based on the five-year funding projections in the Long- range Capital Improvement and the Long-range Financial Plans. Once the target is finalized, the Executive Director determines how the budget will generate the surplus funds necessary to meet that year or future year capital budgets and repay debt. Based on the Board’s reserve policy and the maintenance and replenishment of a healthy level of reserves the past few years, the District can spend down reserves in 2018 in the Funds that have the flexibility to cover capital project expenses and debt obligations while still remaining fiscally agile due to strong future reserves based on 2018 operating budget projections. In 2018, the District will utilize $2,392,966 in existing cash and investments in the General Fund ($423,195), Recreation Fund ($1,038,750), Special Recreation Association Fund ($30,000), Enterprise Services Fund ($387,966), Capital Improvement Fund ($463,055), and the Paving and Lighting Fund ($50,000) to fund various capital projects, including the Berens Park Synthetic Turf Fields, Financial and Enterprise Resource Planning Software, Wagner Community Center Upgrades, accessibility improvements at Eldridge Park, Park and Facility Grounds Equipment, Berens West Parking Lot Improvements, Courts Plus Boiler Replacement, and Fitness Equipment Replacement while ending 2018 with a projected net operating budget surplus of $310,606 (revenues minus expenses without the spend down of cash and investments). In addition, the District will spend down $35,900 of reserves (from 2005 grant revenues) in the Early Bond Repayment Fund to repay a portion of the debt that financed the installation of synthetic turf fields at Berens Park.

Fund Balance Analysis As illustrated in the chart on the following page, the District’s fund balances are at sound levels and contribute to the District’s healthy financial condition. Staff project that many of the funds will have stable fund balances as compared to 2017. The FICA Fund (51.8%) and Liability Fund (144.7%) exhibit decreases in fund balances due a planned one-year reduction of the tax levy in order to the spend down second-tier reserves for operational expenses. The General Fund (4.8%), Recreation Fund (36.3%), and Enterprise Service Fund (4.8%) exhibit decreases in their fund balances due to spending down of second-tier reserves for capital projects. The Capital Improvement Fund (20.6%) and Paving Fund (79.0%) also exhibits decreases due to the spending down of accumulated reserves for 2018 capital projects. The fund balance for the Early Bond Repayment Fund is decreasing (32.7%) due to the planned spend down of reserves to repay debt (see page 57).

36 2018 BUDGET: LONG-RANGE PLANNING

2018 Percent Change in Ending Fund Balance by Fund

Projected 2018 2018 Proposed Percentage Major Fund 12/31/2017 Budgeted Budgeted 12/31/2018 Change in Minor Fund Fund Balance Revenues Expenses Fund Balance Fund Balance General 3,804,190 3,862,856 4,044,755 3,622,291 -4.8% IMRF 177,086 451,958 410,097 218,947 23.6% FICA 373,629 215,580 409,176 180,033 -51.8% Liability Insurance 143,000 48,492 255,390 (63,898) -144.7% Audit 47,593 53,809 53,717 47,685 0.2%

Recreation 2,057,801 5,491,145 6,237,717 1,311,229 -36.3% SRA 440,856 729,672 693,764 476,764 8.1% Museum 174,324 300,412 299,981 174,755 0.2%

Debt Service 123,882 1,853,920 1,844,400 133,402 7.7% Enterprise Services 7,247,948 4,664,293 5,010,668 6,901,573 -4.8% Early Bond Repayment 109,631 - 35,900 73,731 -32.7% Sugar Creek Golf Course 808,948 1,095,149 1,067,406 836,691 3.4% Total Operating Budgets 15,508,889 18,767,286 20,362,971 13,913,204 -10.3%

Capital Improvement 2,156,442 2,160,003 2,603,408 1,713,037 -20.6% Paving & Lighting 62,999 90,234 139,987 13,246 -79.0% Total Capital Improvement Fund 2,219,441 2,250,237 2,743,395 1,726,283 -22.2% Totals 17,728,330 21,017,523 23,106,366 15,639,487 -11.8%

For all funds, the Ending Fund Balances by Fund chart below illustrates the prior year fund balances (audited figures), projected increases and decreases in fund balances for the current year and projected year-end fund balances based on the proposed budget. As illustrated above and on the chart below, all funds are projected to have healthy fund balances as of December 31, 2017 and will meet the fund balance target requirements as outlined in the Board’s Fund Balance Policy on page 49.

2018 Ending Fund Balances by Fund

Audited 2017 Projected 2018 Budgeted Major Fund 12/31/16 Projected Projected 12/31/17 Budgeted Budgeted 12/31/18 Minor Fund Fund Balance Revenues Expenses Fund Balance Revenues Expenses Fund Balance General 4,025,398 3,492,709 3,439,516 3,804,190 3,862,856 4,044,755 3,622,291 IMRF 205,244 392,759 385,222 177,086 451,958 410,097 218,947 FICA 419,755 383,309 382,865 373,629 215,580 409,176 180,033 Liability Insurance 175,340 249,254 249,127 143,000 48,492 255,390 (63,898) Audit 50,240 51,137 50,872 47,593 53,809 53,717 47,685 Total General Fund 4,875,978 4,569,168 4,507,602 4,545,499 4,632,695 5,173,135 4,005,059

Recreation 2,395,570 5,117,504 5,255,081 2,057,801 5,491,145 6,237,717 1,311,229 SRA 321,019 692,709 720,466 440,856 729,672 693,764 476,764 Museum 191,976 296,397 294,751 174,324 300,412 299,981 174,755 Total Recreation Fund 2,908,565 6,106,610 6,270,298 2,672,981 6,521,229 7,231,462 1,962,748

Debt Service 138,749 1,819,876 1,819,876 123,882 1,853,920 1,844,400 133,402 Enterprise Services 6,986,066 4,753,757 4,821,895 7,247,948 4,664,293 5,010,668 6,901,573 Early Bond Repayment 111,629 - 75,715 109,631 - 35,900 73,731 Sugar Creek Golf Course 889,535 1,082,872 1,079,890 808,948 1,095,149 1,067,406 836,691 Total Operating Budgets 15,910,522 18,332,283 18,575,276 15,508,889 18,767,286 20,362,971 13,913,204 Capital Budget Capital Improvement 1,917,652 2,972,784 3,796,665 2,156,442 2,160,003 2,603,408 1,713,037 Paving & Lighting 51,117 160,242 160,205 62,999 90,234 139,987 13,246 Total Capital Improvement Fund 1,968,769 3,133,026 3,956,870 2,219,441 2,250,237 2,743,395 1,726,283 Totals 17,879,291 21,465,309 22,532,146 17,728,330 21,017,523 23,106,366 15,639,487

37 2018 BUDGET: LONG-RANGE PLANNING

Personnel Summary

By continuing to allocate resources conservatively, the District can offer employees competitive benefit packages and remain financially stable while providing the level of service and quality residents expect. The percent of wages compared to the total operational budget (which excludes expenses used for capital improvements and debt service payments) is 54%.

Total full-time equivalents (FTE’s) included in the 2018 Budget is 207.4, an increase of 1.5 as compared to the 2017 Budget. The 2018 FTE is determined using the actual number of full-time positions budgeted combined with calculated part-time FTE’s using the average hourly part-time rate by function combined with expected part-time merit increases to project total part-time budgeted hours. In 2017, 75 full-time positions were budgeted and the calculated part-time FTE’s were 130.9. In the 2018 Budget, 76 full-time positions are included combined with 131.4 calculated part-time FTE’s. In the 2018 Budget, one full-time position is recommended to be eliminated within the Enterprise Services function, while two new positions are recommended to be added: one within the Administrative function and one in the Facilities function. In addition, as detailed below, organizational changes within the District impacted the shifts of positions between other departmental functions.

Staffing Changes: To remain proactive in finding the most efficient way to operate and budget personnel costs without affecting the ability to provide services, staff annually review and determine if changes should be made to the organizational structure and supervisory and support staff functions and in filling vacancies. Several staffing changes are included in the 2018 budget as a result of the 2014-15 Staffing Study, the 2017 Compensation Study, and Vision 2020 Plan implementation.

2014-15 Staffing Study In 2014, the District contracted with Matrix Consulting Group to complete a staffing analysis across all departments in the organization. The purpose was to analyze the staffing structure of full- and part-time employees and recommend an effective structure to achieve operational efficiencies. In 2015, Matrix issued a final report highlighting recommended changes for each functional area of the District with the following changes that were made in 2017 now included as part of the 2018 Budget.

Parks and Facilities: The study recommended that staff from the Parks Ambassador program and athletic field maintenance be moved from the Facilities Department to the Parks Department. As a result, three full-time positions are proposed to be moved, impacting both Departments’ FTE count and shifting wages of $128,610 from the Parks Department to the Facilities Department budgets. In addition, additional seasonal wages are included in the Parks Department to improve park maintenance operations increasing budgeted wages $16,500. 38 2018 BUDGET: LONG-RANGE PLANNING

Finance: The study recommended that Financial Operations Supervisor position from the Enterprises Services Department report to the Finance and Human Resources Department in order to improve internal controls and reduce duplication of work. The Lead Accounting Clerk position in the Finance and Human Resources Department became vacant in 2017. Instead of replacing the position, responsibilities from the two positions were combined, resulting in the elimination of the Lead Accounting Clerk position and the redefined Financial Operations Supervisor position reporting to the Division Manager of Finance. Compared to the 2017 Budget, this change reduced FTE’s by one position and overall salaries by $28,870. Information Technology: The study recommended that the District create an IT Help Desk position to provide the level of technical support needed by staff. In addition, the study also recommended considering the elimination of the GIS position after a review of the position’s work plan. In 2017, the GIS Specialist position became vacant following a staff resignation and instead of replacing the position, it was changed to an IT Help Desk position. In addition, the position of Registration Software Support Specialist was shifted from the Recreation Department to the IT Department to provide support to the additional areas of the District. These change are expected to improve operations within both the IT Department and the District, however, it did not have a material impact on the 2018 Budget as compared to the 2017 Budget no new positions are recommended to be added and budgeted salaries are not changing.

2017 Compensation Study In 2017, the District worked with Gov HR USA to update the full-time employee classification system, originally developed in 1998. In addition to updating the classification system itself, the study was also intended to address employee retention as exit interviews conducted with staff departing the District over the past five years indicated that 66% rated pay as “fair” or “poor”. The firm conducted a job evaluation analysis, performed salary range surveys of similar positions with comparable Park Districts, and established of a job classification system with recommended salary ranges and job titles. As a result, it was determined that 36 employees in full-time positions were earning less than the recommended minimum salary for their position classification as compared to the market. Of the 36, 18 of the positions are non-exempt, blue collar staff primarily working in Parks and Facility laborer positions, earning an average annual salary of $36,739. The average increase per employee is $3,944, which is $71,000 overall as compared to the 2017 Budget. The additional 18 positions are exempt mid-level supervisor positions, earning an average annual salary of $49,505. The average increase per employee is $4,043 with a total impact of $72,770 as compared to the 2017 Budget. The total impact of these one-time adjustments resulting from the 2017 Compensation Study as compared to the 2017 Budget is $143,810.

Vision 2020 Plan The Vision 2020 plan was approved in 2017 and contains many large scale initiatives, including a possible referendum campaign, major facility developments and land acquisition and development. The following staffing recommendations that were previously considered by the Park Board are included in the 2018 Budget to assist with implementation of these initiatives. • Promoting the position of Division Manager of Parks to the Director of Parks and shifting the responsibility for Park Operations management from the former position of Director of Parks and Facilities to this position. • Creating a Division Manager of Manager of Special Facilities (outdoor pools and the Hub) and shifting the oversight of the District’s outdoor pools and the Hub from former position of Director of Parks and Facilities to the new position. • Changing the position of Director of Parks and Facilities to Director of Facilities with the newly defined position acquiring more responsibilities related to the implementation of Vision 2020 initiatives, including the pursuit of new facility development opportunities.

39 2018 BUDGET: LONG-RANGE PLANNING

• Create an additional Administrative strategy and planning position to provide assistance with capital budgeting, policy development and implementation of Vision 2020 initiatives. Compared to the 2017 Budget, increased wages from staffing changes related to Vision 2020 implementation is $143,528 and FTE’s increase by two positons. The staffing changes related to Vision 2020 implementation are also expected to further the District’s long-term succession planning.

The chart below illustrates the number actual FTE’s for 2015 and 2016, budgeted 2017 and proposed budgeted 2018 FTE’s, and the variance from 2017 to 2018 for each functional area of the District. Total full-time equivalents (FTE’s) are 207.4, an increase of 1.5 as compared to 2017. The organizational chart on page 42 highlights the number of full-time employees by functional department.

40 2018 BUDGET: LONG-RANGE PLANNING

ELMHURST PARK DISTRICT POSITION INVENTORY BY FUNCTION

Position Inventory by Function

INCREASE PERCENT FY2015 FY2016 FY2017 FY2018 (DECREASE) OF Actual Actual Budget Budget FY '17 to FY '18 TOTAL

Administration 3.8 4.1 4.3 5.3 1.0 3% Marketing and Communication 3.6 4.3 4.2 4.4 0.2 2% Finance/Human Resources 7.0 7.0 7.0 7.0 0.0 3% Information Technology 3.4 3.0 3.3 4.3 1.0 2% Parks 19.4 20.2 17.8 21.2 3.4 10% Facilities 43.2 40.7 43.0 41.0 -2.0 20% Recreation 51.9 50.9 57.0 57.0 0.0 27% Enterprise Services 61.4 60.0 59.0 57.0 -2.0 27% Sugar Creek Golf Course 10.3 10.3 10.3 10.2 -0.1 5%

TOTAL FULL TIME EQUIVALENT 204 200.5 205.9 207.4 1.5 100%

FTE's are a calculation of the number of full-time employees based on a 2,080-hour work year and include full and part-time

Wages: Attracting and retaining employees is essential to the District’s success in delivering quality services, developing innovative solutions and operating effectively. This sentiment was echoed by Board members who, during Vision 2020 interviews, praised the District’s strong and efficient staff. The District has a commitment to provide fair and equitable compensation and, as such, the proposed budget includes a 2.76% average merit wage increase for full- and part-time staff (0-4% increase based on individual performance) to remain competitive with the marketplace and national trends. According to a recent survey of 1,062 U.S. companies by Aon (a global professional services firm), salary increases in 2018 are expected to average 3 percent, as compared to 2.9 percent in 2017.

41 2018 BUDGET: LONG-RANGE PLANNING

ELMHURST PARK DISTRICT PROPOSED 2018 BUDGET ORGANIZATIONAL CHART

42 2018 BUDGET: LONG-RANGE PLANNING

Health Insurance: The proposed 2018 Budget reflects a projected increase of 8.8% ($77,069) for health, dental, vision and life insurance expenses as compared to the 2017 Budget. The average cost to the District for employee health insurance is budgeted at $10,847 per employee in 2018 versus $10,203 in 2017. The 8.8% increase in proposed expenses as compared to the 2017 Budget is primarily due to employee turnover resulting in new employees making higher cost coverage plan selections.

The District changed from a Defined Benefit rate structure to a Defined Contribution structure with the implementation in 2016 of the Blue Directions program. In this model, in lieu of contributing a percent of premium cost, the District sets a specific dollar amount for employees to use towards medical premiums. This design allows the District to better control medical insurance expenditures while offering the employee more insurance plan options with varied costs.

The 2018 Budget includes health insurance expenses for 76 full-time employees and 12 eligible part-time employees working over 30 hours per week. Part-time employees are eligible for health insurance coverage in accordance with the Patient Protection and Affordable Care Act (PPACA). The District’s proposed contribution rate towards health insurance premiums remains unchanged from the 2016 and 2017 actual rates. As a result of moving to the Blue Directions Defined Contribution Plan, the District is able to offer employees five different health plan choices, most of them at a significantly lower cost for the employee’s share than the plans offered in prior years. For 2018, insurance premium increases resulting from rate or plan changes are proposed to be included in the employee’s portion of the premiums.

Employee Portion of the Premium: In March 2012, the District introduced an expanded workplace wellness incentive program for employees, which includes participation in various activities promoting health and wellness. In 2017, the program changed from a participatory program to an outcomes based program while still offering health and wellness education. The structure change was made in order to better assist employees in maintaining and improving health and wellness. The District will continue to offer this program as an incentive for employees to lessen the amount that they contribute toward their 2018 health insurance benefits and, in the long-term, reduce health care costs for the District. Based upon their participation in this program, employees are able to reduce their premium rates by 5%. The District is within the national average of what employers charge employees for coverage. Opt-out Incentive: As a result of the PPACA, health insurance industry experts thought that the opt-out incentive program would end in 2014. However, changes in the law allow employers to continue offering the incentive. Based on prior year totals, an estimated 12 employees are expected to waive coverage in 2018 with a projected savings for the District of approximately $177,450 in 2018.

Employee Relations: The District’s employee relations program provides the opportunity to thank and recognize employees for their hard work and offer them opportunity chance to interact with each other in a non-work atmosphere. With a total budget of $18,200, the Employee Relations Committee hosts events such as the Holiday Open House, an outing to a ballpark and the summer employee picnic. With approximately 820 full-time, part-time, and seasonal employees, this equates to approximately $22.20 per employee.

Continuing Education: Funds spent on continuing education are an investment in the employee and the District, as employees need to stay abreast of current trends and expand their skills to understand changes occurring in their field and provide the complexity of services and tasks required of today’s worker. To remain fiscally responsible while continuing to offer this valuable employee benefit, the $337 per full-time employee amount remains consistent for 2018 as compared to the previous year. The total amount budgeted for continuing education for full- and part-time employees is $39,226, an increase of $5,508 due in part to additional staff customer service training budgeted for 2018. The Park Board’s continuing education budget is $15,450, unchanged from the 2017 Budget.

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44 2018 BUDGET: BUDGET PROCESS AND POLICIES

Budget Process and Reporting Requirements The District begins the budget preparation process in June with the development of the budget calendar, outlining all the provisions in the law. Administration and Finance staff update the budget manual that provides the guidelines and procedures for completing the budget. Staff are trained on the Executive Director’s budget parameters and expectations and budget preparation procedures. The budget is presented as a legislative document that, together with the related appropriating ordinance, will represent Park Board policy concerning the sources and uses of funds for the budget year.

In July and August, prior to the development of the operating budget, staff and the Board review the Strategic Work Plan and updates are made as needed. The Departments begin the budget process by setting goals for the coming fiscal year that reflect the initiatives and tactics outlined in the Strategic Work Plan and identifying and prioritizing operating and capital needs for the Long-range Capital Improvement Plan. Similar to the Strategic Plan, the Capital Improvement Plan is updated prior to developing the operating budget to ensure adequate resources are available and allocated for large-scale projects. The capital planning process begins in early July and continues in August to ensure staff have adequate time to develop and review project proposals and finalize the long-range capital plan. Once the Capital Plan is complete, the upcoming year of the proposed plan is incorporated into the proposed budget.

In August and early September, the Departments prepare operating budgets and input them into the District’s financial software. Departments submit their requests to the Executive Director mid-September for review. The Executive Director finalizes revenue (including tax projections), expenditure, fund balance, and cash and investment target estimates in order to prepare the proposed budget. The proposed budget is distributed to the Board in early November. At that time, the Board announces the availability of the tentative budget for the 30-day public viewing as required by law.

At its second meeting in November, the Board holds a public hearing on the budget, which also includes staff presentation and Board discussion (capital and debt is reviewed at the first meeting in November). Once the Board tentatively approves the budget, staff prepare the final Budget and Appropriation Ordinance reflecting the Board’s direction. The Ordinance appropriates the monies that are necessary to cover the projected expenses and liabilities that the District may incur during the budget year. The Board adopts the Ordinance in December after the 30-day public review period and files the Ordinance with the DuPage and Cook County clerks’ offices by the last Tuesday in December (pursuant to State law).

After the Board approves the Ordinance, the new budget is effective on January 1. All annual budgets and appropriations lapse at fiscal year-end and are appropriated 20% higher than projected budget expenditures. Throughout the fiscal year, the Board and staff continually monitor the budget against actual revenues and expenditures. State law prohibits further appropriation at any time within the same fiscal year, but the Board has the authority (after the first six months of the fiscal year) to make transfers between the various budget items in any fund in the Appropriation Ordinance with a two-thirds vote. Transfers cannot exceed 10% in the aggregate of the total amount appropriated for the fund or item that is having funds re-allocated. If the Board decides to amend the Ordinance, it must do so in accordance with the same procedure followed in the originally adopted Ordinance (as discussed above).

Basis of Budgeting In preparing the budget, the basic assumption is that revenues and expenditures are based upon a modified accrual basis similar to the District’s year-end Audited Financial Statements that are prepared in accordance with Generally Accepted Accounting Principles (GAAP). Some differences may include, but are not limited to, the following examples:

• Timing of programs and actual receipt of payment for these programs may differ. • Expenses are recorded in the Financial Statements as merchandise is received or services are actually performed without regard as to actual payment of the merchandise or service. 45 2018 BUDGET: BUDGET PROCESS AND POLICIES

• Depreciation expense in the Enterprise Funds is not included in the budget but is included in the Financial Statements. • Capital expenses in the Enterprise Funds are included in the budget; however, they are recorded as Fixed Assets in the Balance Sheet in the Financial Statements. • Principal and interest for Enterprise Fund debt payments are included in the budget document but only interest is expensed in the Financial Statements. Principal is recorded as a reduction to the Debt Liability in the Balance Sheet.

Annual appropriations are adopted for the general, special revenue, debt service, capital projects, enterprise, and internal service funds. All annual appropriations lapse at fiscal year-end.

2018 Budget Calendar

July 6, 2017 Staff trained on and begin capital planning process July 12 and 19, 2017 Strategic Work Plan review July and August, 2017 Staff develop proposed major revenue and expense parameters/assumptions July 20 & August 17, 2017 Capital Planning Team reviews and determines proposed Capital Improvement Plan August 16, 2017 Training on budget expectations and preparation guidelines August 29, 2017 Departments begin inputting preliminary budget proposals into budget software September 21, 2017 Departments complete budget input into budget software September 26, 2017 Executive Director finalizes budget proposals with staff and cash and investment target estimates October 2, 2017 Departments complete written budget submission October 10, 2017 Board reviews and approves Tax Levy Resolution October 23, 2017 Capital and debt overviews distributed to Board October 23, 2017 Board reviews Long-range Capital Plan and debt Tentative budget delivered to Board & available for public inspection (at least 30 days prior to November 13, 2017 adoption) November 13, 2017 Staff present operating budget proposal to the Board. Public notice provided November 27, 2017 Public hearing on 2015 amended budget and 2016 Budget and Appropriation Ordinance November 27, 2017 Board continues discussion on proposed budget December 11, 2017 Truth in Taxation Hearing held, if necessary (if increase of aggregate extension is over 5%) Board approves Budget Document and Tax Levy and Budget and Appropriation Ordinance and December 17, 2017 Amendments December 26, 2017 District files Budget and Appropriation Ordinance with DuPage and Cook County clerks

Elmhurst Park District Budget Development Schedule

June July Aug Sept Oct Nov Dec Staff develop and review Capital Plan X X Budget kick-off X Staff review Strategic Work Plan X Staff conduct budget training X Board reviews Strategic Work Plan X Departments develop budgets X X Executive Director reviews budget submissions X Staff develop final budget proposals and document X X Board approves Tax Levy Resolution X Staff present proposed budget to Board X Board holds public hearing on proposed budget X Board reviews Budget X X Board holds Truth in Taxation Hearing, if necessary X Board adopts Budget and Tax Levy Ordinances X

46 2018 BUDGET: BUDGET PROCESS AND POLICIES

Financial Policies

General The Elmhurst Park District has a commitment to sound financial management. This section outlines the formal policies approved by the Park Board to maintain this commitment.

Budget Policies 1. Budget development is directed by specific goals and objectives as included in the Board’s Strategic Plan. 2. The budget document must provide enough detail to enable accurate projections of revenues and expenses, separation of capital and operational items, cash flow and subsequent audit trails, and disclosure of planning assumptions. 3. Staff cannot plan the expenditure in any fiscal year of more funds than are conservatively projected to be available in that period or fail to provide for appropriate fund balances at year-end. 4. The Budget (including the tax levy, tax abatements, and long-term debt) must be approved by the Board prior to implementation except for a temporary continuation of the prior year’s budget. 5. The Executive Director must provide a report to the Board on budget performance on at least a quarterly basis, including a comparison of actual revenues and expenditures to budgeted amounts. 6. The District prepares a five-year financial plan that supplements the annual budget and is used to determine funding needs for the capital improvement plan. 7. The District must pass and file with the DuPage and Cook County Clerks’ offices a combined annual Budget and Appropriation Ordinance. The ordinance appropriates the monies necessary to cover the projected expenses and liabilities that the District may incur during each budget year. The Board must follow the process listed below for preparing and filing the Ordinance: • It must be adopted within the first quarter of each fiscal year. • The Ordinance shall contain a statement of cash on hand at the beginning of the fiscal year and estimate of monies expected to be received during the fiscal year from all sources as well as an estimate of expenditures for the fiscal year and an estimate of cash on hand at the end of the fiscal year. • It must be prepared in tentative form and made available for public inspection no less than 30 days prior to final action. • The Board must hold at least one public hearing regarding the Ordinance before it can take final action. Notice of the hearing and a copy of the Ordinance must be published in a newspaper circulated in the District at least 7 days, but no more than 30 days before the time of the hearing. • After Board approval, the District must file a certified copy of the Ordinance with the DuPage and Cook County Clerks within 30 days. • No further appropriations shall be made at any other time within the fiscal year with the following exceptions:

A) After the first six months of the fiscal year, the Board may approve by two-thirds vote transfers between items in some funds (State law requires some funds remain separate) and also between various items in any fund not exceeding, in the aggregate, ten percent of the total amount appropriated for the fund.

B) The Board may amend the Budget and Appropriation Ordinance by the same procedure as herein provided for the original adoption of a Budget and Appropriation Ordinance provided that nothing in this section shall be construed to permit transfers between funds required by law to be kept separate (70 ILCS 1205/4-4).

47 2018 BUDGET: BUDGET PROCESS AND POLICIES

8. It is the District’s policy to avoid transferring funds until near the end of the fiscal year. This timeline enables the Board to better assess which items require additional funding and which items have unexpended funds to re-allocate. However, if any funds have exceeded their approved appropriations, the Board may decide to re-allocate funds after six months. 9. State law is followed when preparing and adopting the tax levy including: • At least twenty (20) days prior to adopting the Tax Levy Ordinance, the Board must meet and formally determine the amount of money that it estimates will be levied. This determination must be formalized in a resolution, which it must adopt. • An ordinance must be passed to levy all general taxes upon the taxable property within the District. • The Tax Limitation Law (tax cap legislation) limits the total levy from exceeding 105% of the prior year levy or the Consumer Price Index (whichever is lower). The Special Recreation and Debt Service Funds are excluded from this limitation. • As also required by the Truth in Taxation Law, the District must hold a public hearing if the total levy exceeds 105% of the prior year levy. The hearing cannot be held on the same day that the Board holds the proposed Budget and Appropriation Ordinance hearing. The hearing requires publication of a notice of the time, date and place of the hearing. It must be published in a paper of local circulation, not more than fourteen (14) days nor less than seven (7) days prior to the meeting. It must be no less than 1/8th page in size; the smallest type used in the notice must be 12 point; it must be surrounded by a black border no less than one-quarter inch wide; and the notice must not be published in the legal notice or classified advertisement sections of the newspaper. There is also specific required language for the advertisement in the Act. • A certified copy of the Tax Levy Ordinance must be filed with the DuPage and Cook County Clerks no later than the last Tuesday in December of each year.

10. The Park District may accumulate funds for the purpose of building repairs and improvements. Additionally, it may annually levy taxes for such purposes as are not met by the funds available in the current or projected Budget and Appropriation Ordinance. These levies must fall within the procedures and limitations as set forth in the Illinois Revised Statutes (70ILCS 5-1).

Revenue Policies 1. The District must utilize and seek other sources of revenue to supplement the tax base, as it is not feasible to rely solely on property taxes to financially support diversified, year-round quality parks and recreation experiences. Other sources of revenue may include, but are not limited to, user and membership fees, retail sales, interest income, grants, contractual receipts, sponsorships, donations, and enterprise projects. 2. The District proposes program fees and taxes that exceed general operating expense each year to generate a surplus for emergency reserves and future capital projects. 3. The District will estimate annual revenues on an objective, reasonable, and conservative basis. Revenues will be estimated based on a historical trend analysis. Staff conduct an in-depth analysis of most revenues annually including customer needs, cost to provide the service, market conditions, target markets, trends, and climate impact and facility availability. 4. One-time revenues will not be used to support operating expenditures, except in emergency situations. 5. Special pricing strategies are developed to increase revenue (i.e., differential fees for different types of programs or time of the year, group discounts or discounts due to repeat business or for multiple family members). 6. Enterprise facilities and programs must generate revenue that exceeds the direct operational cost of the program/facility and show a minimum profit of 15% without utilizing tax revenue. 7. Since non-residents do not support the District through taxes, non-residents pay an additional fee

48 2018 BUDGET: BUDGET PROCESS AND POLICIES

(fair-share) of no less than 25% to assist with paying for overhead, facility maintenance, and program development expenses covered by taxes. 8. Budgeted revenues should be at least 60% derived from non-tax revenue sources. 9. The District will refinance outstanding debt whenever economically feasible.

Expenditure Policies 1. With respect to the actual, ongoing condition of the District’s financial health, the Executive Director may not cause or allow the development of fiscal jeopardy or loss of allocation integrity with the Board’s goals. 2. The Board and staff cannot indebt the organization beyond normal accruals and accounts payables. 3. The Board and staff cannot allow cash to drop below the amount needed to settle payroll and debts in a timely manner. 4. The Board and staff cannot expend more funds than have been made available in the fiscal year to date unless the debt guideline in number 3 above is met. 5. The District must make prompt payment of purchases as provided by the Local Government Prompt Payment Act of Illinois.

Fund Balance Policies The Board’s Fund Balance Policy sets minimum ending fund balances for some governmental funds to ensure financial stability, cash flow, and the assurance that the District will be able to continue to plan for contingencies with fiscal strength. The District considers the predictability of its revenues and expenses and the potential exposure for significant one-time outlays. An annual review of the Fund Balance levels will take place during the budget process and a formal review of the policy will be conducted every three years to ensure target levels are appropriate.

The Fund Balance targets are as follows:

General Fund – Unrestricted fund balance in this fund should represent a minimum of 25% of the annual operating budgeted expenditures.

Special Revenue Funds – The fund balance amount (restricted and/or committed) should represent a minimum level of 10% of annual operating budgeted expenditures.

Cash and Investment Reserve Policies First-tier cash and investment targets: To meet cash flow obligations and reduce susceptibility to emergency or unanticipated expenditures or revenue shortfalls, the Budget must meet the Board’s first- tier cash and investment reserve targets by providing for cash and investments of not less than the percentages established for each of the major funds. The targets vary as they reflect the unique nature of the cash flows of each of the funds. A cash flow analysis should be conducted annually for all funds and an evaluation of all the cash and investment targets conducted every three years for all funds.

The reserve targets established are as follows:

General Fund (35% of expenses) - Since its inflows are primarily tax receipts that are not received until the second and third quarters of the fiscal year, the cash and investments goal is intended to allow for the District to cover its expenditures until taxes are received.

Recreation Fund (10% of expenses) - The revenues for this fund are tax receipts and program revenues. The program revenues provide sufficient cash flow to use a 10% target for this fund.

49 2018 BUDGET: BUDGET PROCESS AND POLICIES

IMRF (50% of expenses) and FICA and Audit Funds (50% of expenses) - The primary source of cash for these Departments is taxes so the year-end cash and investments goal covers the budgeted expenditures until taxes are received. Liability Fund (10% of expenses) - The primary source of cash for this Department is taxes and the primary outflow for this fund is the payment of Park District Risk Management Agency membership dues. Since the dues payment is scheduled to coordinate with tax receipts, the year-end cash and investment target is 10%.

Special Recreation Association Fund (25% of expenses) - The primary source of revenue for this Fund is taxes, but its cash outflows do not match the timing of tax receipts. Most of expenditures occur from January through September so 25% is the appropriate target for cash and investments.

Museum Fund (25% of expenses) - The primary source of revenue for this fund is taxes, but its cash outflows do not match the timing of tax receipts. Therefore, a target of 25% is sufficient for this Fund.

Enterprise Services Fund (15% of expenses) - The Enterprise Services Fund derives its cash flow from operations. Cash flow in April and June must be managed carefully since tennis moves outdoors. This fund has a two-tiered cash and investment goal. The first requirement is for a $1,200,000 level established for emergency capital needs. The second cash and investment level is for 15% of budgeted expenditures of the current year.

Several funds do not have established targets due to the unique nature of their cash flow. Further detail follows on the specific cash flows of these funds.

Paving & Lighting Fund – The Paving and Lighting Fund relies upon tax receipts for cash inflows. The statutory levy rate is very small. As a result, this Fund must accumulate funds for two to three years to build up sufficient resources for a capital project. Its cash and investment goal, therefore, varies based on the future projects being planned by the District and the level of funds accumulated for those projects.

Debt Service (bond) Fund – This fund is used only to service debt so revenues are budgeted to match debt schedules and any fees. Therefore, the District does not need to establish a separate cash and investment target for this fund.

Capital Improvement Fund – The Capital Improvement Fund is used exclusively for capital projects. It relies upon transfers from other funds and any interest earned on those funds. Its cash flows are variable based upon the projects planned in that year.

Sugar Creek Golf Course Fund – This Fund derives its cash flow from operations so its cash and investments goal is determined by estimated operational and capital needs including an unreserved balance of $300,000 to cover emergency capital needs.

If, at the end of the fiscal year, cash and investments fall below the targets described in this section, the Executive Director must include a plan for expenditure reductions and/or revenue increases. After reviewing the Executive Director’s plan, the Board will take the appropriate action necessary to restore cash and investments to acceptable levels.

50 2018 BUDGET: BUDGET PROCESS AND POLICIES

Second tier cash and investment targets - If the first tier targets are achieved as described above, the budget must provide the surplus funds necessary to implement the Capital Improvement Plan (current or future projects) or fund future debt. To determine the amount of surplus funds needed to meet future capital and debt obligations, the Executive Director shall prepare a five-year funding projection annually.

Excess reserve over targets - If cash and investments are greater than the first and second tier targets at the end of any fiscal year, the excess may be used in one or in a combination of the following ways:

• One-time expenditures that do not increase recurring operating costs. • Start-up expenditures for new programs undertaken mid-year.

Capital Improvement Policies 1. The District shall maintain a Capital Improvement Plan and capital improvements will be made in accordance with that plan. The Plan should be updated annually. 2. As part of the development of the Capital Improvement Plan, the condition of the District’s infrastructure will be evaluated to appropriately prioritize and schedule maintenance and replacement. 3. The Capital Improvement Plan will be developed using a team approach and prior to completing the operating budget to ensure adequate resources are available to fund all the projects in the Plan. 4. Projects are evaluated using the following criteria: • Eliminates a threat to personal and public safety • Satisfies or meets a legal requirement, liability or mandate that must be addressed in the next fiscal year (law, regulation or court order) • Addresses completing a project commitment with dedicated funding, which has already been approved by the Park Board • Advances the implementation of the District’s mission, vision, strategy, goals or policies approved by the Board of Park Commissioners • Satisfies or meets a legal requirement, liability or mandate that can be addressed in future years of the Capital Plan (law, regulation or court order) • Improves the positive impact on the environment and reduces carbon footprint • Rehabilitates or replaces a facility or equipment that has reached its useful life and/or preserves existing resources/return on investment • Reduces future maintenance or operating costs • Leverages available private or local, state or federal government funds • Results in generating net revenue that exceed the direct operational cost of facility/equipment and create a profit without using tax revenue • Provides new or expanded level of service • Promotes intergovernmental cooperation and other partnership opportunities • Improves the way the District operates resulting in increased productivity and efficiency • Provides enhanced safety 5. The corresponding year of the Capital Improvement Plan will be incorporated into the annual budget as the Capital Budget. Projects slated for subsequent years are approved on a planning basis only. 6. The District defines a capital project as having a relatively high monetary value (at least $5,000 for operating equipment and machinery and at least $25,000 for land acquisition and improvements), a long useful life (at least five years), and results in the creation of a fixed asset or the revitalization of a fixed asset. 7. Funding for the Capital Improvement Plan includes accumulated budget surpluses in the form of fund balances, user fees, grants plus debt management.

51 2018 BUDGET: BUDGET PROCESS AND POLICIES

Debt Policies 1. The District will confine long-term borrowing to capital improvements or one-time obligations that cannot be financed from current revenues or reserves. 2. Capital projects financed through the issuance of bonds shall be financed for a period not to exceed the expected useful life of the improvement or 25 years. 3. The District will maintain good communications with bond rating agencies regarding its financial condition. 4. The aggregate indebtedness of the District cannot exceed 2.875% of the value of the taxable property (EAV) and .575% of taxable property is the non-referendum legal debt limit. 5. Based on State law, the District cannot issue more than $1.04 million in non-referendum General Obligation Bond debt annually with a yearly increase based on the Consumer Price Index. 6. The District will not consider long-term debt that, through its issuance, would cause the District’s bond rating to be lowered. 7. The District retains external bond counsel for all debt issuances to ensure compliance with applicable federal and state tax and other laws and regulations pertaining to public financing. The District will not issue debt without a written opinion by bond counsel. 8. The District will retain an external financial advisor to be utilized in selected debt issuances.

Cash Management (Investments) 1. An investment policy has been adopted by the Board, which provides guidelines for the prudent investment of temporary idle cash and outlines the policies for maximizing the efficiency of the cash management system. The ultimate goal is to enhance the economic status of the District while protecting its pooled cash. 2. All funds must be invested or held in secure instruments that are both (a) allowed by state law AND (b) insured by either an agency of the federal government, collateralized by the holding institution, or judged to be safe by Illinois Park District Liquid Asset Fund (IPDLAF) or any successor group which guides investments for a consortium of park districts or other municipal governments. 3. The District’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the District to invest funds to the fullest extent possible. The District attempts to match funds to projected disbursements. 4. Criteria for selecting investments and the order of priority are: safety, liquidity, and yield.

Capital Asset 1. The District has a capital assets policy that includes guidelines for identifying, recording, depreciating and retiring capital assets. 2. All assets must be insured against theft and casualty losses to at least 80% replacement value and against liability losses to Board members, staff, or the organization itself to beyond the minimally acceptable prudent level. 3. A comprehensive evaluation of District assets must be performed every five to seven years. 4. The District capitalizes all assets that are projected to last more than one year and cost more than $5,000 for machinery equipment and $25,000 for land, land improvements, buildings, and infrastructure. 5. Estimated useful life of the various categories of assets has been established. 6. Assets subject to depreciation will be depreciated using a straight-line method. The cost of the asset will be written off evenly over the useful life of the asset beginning in the month that the asset was purchased or put in service. 7. This policy is intended to address those capital assets that must be tracked for external financial reporting purposes. There are other assets that do not need to be included in the external financial reports due to their relatively low value. However, Departments are expected to exert appropriate control on them.

52 2018 BUDGET: BUDGET PROCESS AND POLICIES

Financial Reporting Policies 1. All funds must be received, processed, or disbursed under controls sufficient to meet the Board- appointed auditor’s standards. 2. As required by law, the District conducts an annual audit of all funds, property, and financial practices by an independent certified public accounting firm. 3. The audit is conducted according to Generally Accepted Auditing Standards (GAAS). 4. The audit is made available for public inspection and filed with the DuPage and Cook County Clerks. 5. As required by law, a supplemental financial report with a copy of the audit is completed and filed with the Comptroller of the State of Illinois within six months following the close of each fiscal year. 6. The District’s Treasurer must prepare and file with the County Clerk a financial report at the end of the fiscal year as required in the Public Funds Statement Publication Act. 7. A public newspaper notice is required stating the Audit and financial report is available for public inspection disclosing address and hours of availability.

Fund Structure Governmental funds are used to account for all or most of a government’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). Revenues are primarily provided by the annual property tax levy. The District uses the following governmental funds: General, Recreation, Debt Service, and Capital Improvements.

• General Fund: is used to account for all activities of the general government not accounted for in some other fund including park services, facility maintenance and administration. The General Fund is the principal operating/major fund of the District. It has four minor funds presented in separate reports and defined below. o Illinois Municipal Retirement Fund: The IMRF Fund accounts for the activities resulting from the District’s participation in IMRF. Revenues are provided by a specific annual property tax levy that produces a sufficient amount to pay contributions to the fund on behalf of District employees. Payments to IMRF and receipt of property taxes are the major activities in this Fund. o FICA: The Park District’s Social Security contributions and activities are accounted for in this Fund. Financing is provided by a specific annual property tax levy that produces a sufficient amount to pay the District’s contribution to Social Security based on payroll. Transactions recorded include property taxes received and Social Security payments. o Liability Insurance: This Fund records the District’s business insurance and risk management activities, currently provided through membership to the Park District Risk Management Agency. Financing is provided from the annual property tax levy. o Audit: This Fund accounts for expenditures related to the District’s annual financial audit. Financing is provided from an annual property tax levy, the proceeds of which can only be used for this purpose. Transactions consist of property taxes received and audit expense.

• Recreation Fund: This Fund is used to account for the operations of recreation services including sports and fitness, visual and performing arts, youth and adult general interest, camps, teens, preschoolers, seniors and aquatics. According to Article 5-2 of the Park District Code, a park district may levy and collect an annual tax for the purpose of planning, establishing and maintaining recreational programs and that tax shall be levied and collected in like manner as the general taxes for the District (statutory rate limit is .075). Financing is primarily provided from fees and charges for programs and activities and the annual property tax levy. The Recreation Fund is also considered a major fund and has two minor funds presented in separate reports (also special revenue funds) and are described below. o Museum: This Fund accounts for revenues and expenditures related to the operation of the Wilder Museum/Conservatory and all utility and non-enterprise hospitality rental, meeting and community event expenses at the Wilder Mansion. According to 70 ILCS, Pars. 1290/1 and 1290/2, a Board of Park Commissioners, having control of a public park or parks within which 53 2018 BUDGET: BUDGET PROCESS AND POLICIES

there shall be maintained any aquarium or any museum or museums of art, industry, science, or natural or other history may levy and collect an annual tax for the purpose of establishing, acquiring, completing, erecting, enlarging, ornamenting, building, rebuilding, rehabilitating, improving, operating, maintaining and caring for such aquarium and museum or museums and the buildings and grounds thereof (statutory rate limit is .07). Financing is provided primarily from the annual property tax levy and program fees. o Special Recreation Association: This Fund accounts for revenues and expenditures related to the provision of recreation services for individuals with disabilities including membership in the Gateway Special Recreation Association. According to Article 5-8 of the Park District Code, a district that is party to a joint agreement to provide recreational programs for the handicapped under Section 8-10b of the Code may levy and collect an annual tax for the purpose of funding the District’s share of the expenses of providing these programs under that joint agreement (statutory rate limit is .04 and is not part of the tax cap). Financing is primarily provided from the annual property tax levy and program and transportation fees.

• Debt Service Fund: The Debt Service Fund is used to account for the accumulation of resources for payment of principal, interest and other costs related to bonds. Beginning in 2003, the District collapsed all of the separate debt funds into one debt service fund with unique accounts for each debt issue.

• Capital Improvement Fund: This fund accounts for all capital improvements not specifically accounted for in other funds. Transactions are capital improvements including park redevelopment. Prior to 2002, the District had a separate fund, the People for Elmhurst Parks Fund (PEP) that provided “seed money” for special projects and generated its revenue primarily through donations. However, at the end of 2001, all of the cash and investments of this fund were transferred to the Capital Improvement Fund where they are restricted for capital projects. The Capital Improvement Fund is also considered a major fund and has one fund presented in a separate report and described below.

o Paving and Lighting Fund: This Fund is used to account for revenues and expenditures related to the planning, construction and maintaining of streets, roadways and other paved areas and the lighting thereof within the parks maintained within the District. The District is authorized, under section 5-6 of the Illinois Park District Code, to levy and collect annually a tax not-to-exceed .005% of the value, as equalized or assessed by the Fund of Revenue, of all taxable property in the District, for the purpose of constructing, maintaining, and lighting streets and roadways within the parks and playgrounds maintained by the District. Financing is provided from the annual property tax levy.

Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities are provided to outside parties (enterprise funds) or to other departments within the District (internal service). Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. User charges are intended to cover the costs of these operations. Internal Service funds are used to account for the financing of goods or services provided by one department to the other departments of the governmental unit on a cost- reimbursement basis. The chief aim of an internal service fund is cost reimbursement.

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Enterprise Funds • Enterprise Services Fund: This Fund is used to account for the operation of the Courts Plus Fitness Facility and other entrepreneurial businesses of the District (i.e., Wilder Mansion, outdoor weddings).

• Early Bond Repayment Fund: The Early Bond Repayment Fund was initially established in 1993 to account for the accumulation of sufficient resources for the possible early retirement of the 1992 Installment Contract Certificate. In 1999, the Board voted to designate the use of these funds for various capital projects beginning in 2002. Since the dollars that provided the “funding” for this Fund were initially from the Courts Plus Fund (a proprietary fund now titled the “Enterprise Services Fund”), this Board action resulted in this Fund becoming a proprietary fund, rather than a debt service fund. For internal tracking and in budgets, this Fund is displayed as a separate enterprise fund. In 2005, State grant funds of $1,050,000 were received, recorded and invested in this Fund. To finance the installation of synthetic turf athletic fields at Berens Park (for $1 million), a portion of the 2006 $7.5 million General Obligation Limited Tax Bond sale was pledged towards this project. The portion of the debt payment in 2008 and in future years for this project ($75,715 annually) will be transferred from this Fund to the Debt Service Fund.

• Sugar Creek Golf Course: This Fund is used to account for the operation of the Sugar Creek Golf Course.

Internal Service Fund • Management Information System Fund: This Fund accounts for the information technology operations for the District. It is the intent of the District to reimburse the expenses of the fund and it is not the intent to have a fund balance.

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56 2018 BUDGET: FUND SUMMARY

The Fund Summary section provides an analysis of revenue and expenditure trends by fund and is organized by fund group (Government and Proprietary). The last page of this section includes an overview of all the interfund transfers between the funds in the 2018 Budget.

The 2018 Budget Summary by Fund chart below provides an overview of total 2018 budgeted revenues and expenses by fund. The third column provides the difference of revenues less expenditures (operating net), the fourth column provides the amount of spending down of reserves in funds and departments (recorded as revenue in previous budgets and accumulated over the cash and investment target for each Fund/Department), the fifth column includes operating expenditures plus the amount being spent down in each fund, and the last column provides the difference between revenues and total expenditures (net) in each fund and department in the 2018 Budget. Later in this section, a description of the spending down of reserves is provided for each fund and department.

2018 Budget Summary by Fund

Cash & Operating Investment Total Revenues Expenditures Operating Net Spend Down Expenditures Net General Fund 3,862,856 3,621,560 241,296 423,195 4,044,755 (181,899) IMRF Fund 451,958 410,097 41,861 - 410,097 41,861 FICA Fund 215,580 409,176 (193,596) - 409,176 (193,596) Liability Insurance Fund 48,492 255,390 (206,898) - 255,390 (206,898) Audit Fund 53,809 53,717 92 - 53,717 92 Recreation Fund 5,491,145 5,198,967 292,178 1,038,750 6,237,717 (746,572) Special Recreation Association Fund 729,672 663,764 65,908 30,000 693,764 35,908 Museum Fund 300,412 299,981 431 - 299,981 431 Enterprise Services Fund 4,664,293 4,622,702 41,591 387,966 5,010,668 (346,375) Sugar Creek Golf Course Fund 1,095,149 1,067,406 27,743 - 1,067,406 27,743 Total Operating 16,913,366 16,602,760 310,606 1,879,911 18,482,671 (1,569,305) Debt Service Fund 1,853,920 1,844,400 9,520 - 1,844,400 9,520 Early Bond Repayment Fund - - - 35,900 35,900 (35,900) Capital Improvement Fund 2,160,003 2,140,353 19,650 463,055 2,603,408 (443,405) Paving & Lighting Fund 90,234 89,987 247 50,000 139,987 (49,753) Total Debt and Capital 4,104,157 4,074,740 29,417 548,955 4,623,695 (519,538) Total 21,017,523 20,677,500 340,023 2,428,866 23,106,366 (2,088,843)

57 2018 BUDGET: FUND SUMMARY

The Four-year Summary by Fund chart below provides comparisons of 2015 actual, 2016 actual, 2017 approved budget and 2018 projected budget revenue and expenditures by fund. The chart illustrates the amount and percent change of revenue and expenditures for the 2017 approved budget and 2018 projected budget by fund. Revenue is projected to decrease by 2.1% ($447,786) and expenditures are expected to increase by 2.5% ($574,220). The 2018 Budget revenue variance from the prior year is primarily due to the inclusion of $2,200,000 in bond proceeds in the prior year used to finance land acquisition purchases. Expenses are higher primarily due to increased cash and investment transfers from the General and Recreation Funds to the Capital Fund used to finance capital projects in 2018.

Four-year Summary by Fund (2015 Actual, 2016 Actual, 2017 Budget and 2018 Budget) Revenue 2017 vs. % Change Fund/Fund Actual 2015 Actual 2016 Budget 2017 Budget 2018 2018 17 vs. 18 General Fund 3,379,101 3,481,288 3,492,709 3,862,856 370,147 10.6% IMRF Fund 386,542 388,734 392,759 451,958 59,199 15.1% FICA Fund 382,391 385,329 383,309 215,580 (167,729) -43.8% Liability Insurance Fund 254,566 256,319 249,254 48,492 (200,762) -80.5% Audit Fund 50,473 51,199 51,137 53,809 2,672 5.2% Recreation Fund 4,945,878 5,131,458 5,117,504 5,491,145 373,641 7.3% Special Recreation Association Fund 630,162 670,116 692,709 729,672 36,963 5.3% Museum Fund 276,780 281,567 296,397 300,412 4,015 1.4% Enterprise Services Fund 5,432,541 4,428,234 4,753,757 4,664,293 (89,464) -1.9% Sugar Creek Golf Course Fund 1,044,673 1,029,255 1,082,872 1,095,149 12,277 1.1% Total Operating Budget 16,783,108 16,103,499 16,512,407 16,913,366 400,959 2.4% Debt Service Fund 1,658,834 1,668,213 1,819,876 1,853,920 34,044 1.87% Early Bond Repayment Fund 2,609 2,220 - - - 0.0% Capital Improvement Fund 1,055,101 1,826,393 2,972,784 2,160,003 (812,781) -27.3% Paving & Lighting Fund 90,178 135,660 160,242 90,234 (70,008) -43.7% Total Budget 19,589,830 19,735,985 21,465,309 21,017,523 (447,786) -2.1% Expenditures 2017 vs. % Change Fund/Fund Actual 2015 Actual 2016 Budget 2017 Budget 2018 2018 17 vs. 18 General Fund 4,214,142 3,206,887 3,439,516 4,044,755 605,239 17.6% IMRF Fund 361,045 353,039 385,222 410,097 24,875 6.5% FICA Fund 339,221 338,759 382,865 409,176 26,311 6.9% Liability Insurance Fund 228,367 223,852 249,127 255,390 6,263 2.5% Audit Fund 45,073 48,287 50,872 53,717 2,845 5.6% Recreation Fund 4,627,275 4,931,266 5,255,081 6,237,717 982,636 18.7% Special Recreation Association Fund 605,790 817,710 720,466 693,764 (26,702) -3.7% Museum Fund 257,074 262,269 294,751 299,981 5,230 1.8% Enterprise Services Fund 4,831,720 4,758,254 4,821,895 5,010,668 188,773 3.9% Sugar Creek Golf Course Fund 915,585 945,686 1,079,890 1,067,406 (12,484) -1.2% Total Operating Budget 16,425,292 15,886,009 16,679,685 18,482,671 1,802,986 10.8% Debt Service Fund 1,651,516 1,653,346 1,819,876 1,844,400 24,524 1.3% Early Bond Repayment Fund 75,991 75,937 75,715 35,900 (39,815) -52.6% Capital Improvement Fund 939,318 2,889,064 3,796,665 2,603,408 (1,193,257) -31.4% Paving & Lighting Fund 105,463 147,505 160,205 139,987 (20,218) -12.6% Total Budget 19,197,580 20,651,861 22,532,146 23,106,366 574,220 2.5% 392,250 (915,876) (1,066,837) (2,088,843) (1,022,006) 95.8% Net

58 2018 BUDGET: FUND SUMMARY

The next part of the Fund Summary section provides an overview of the District’s basis of accounting and budgeting (fund accounting) and the two fund groups (Government and Proprietary) along with an organizational chart to illustrate the relationship between and overall structure of the District’s funds. A detailed analysis of revenue and expense trends for each Fund follows the overview.

Basis of Presentations – Fund Accounting

In governmental accounting, all financial transactions are organized within funds. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. In addition, the District abides by Generally Accepted Accounting Principles (GAAP) governing the use of funds. A fund is a separate accounting entity with a self-balancing set of accounts that are comprised of assets, liabilities, fund balance/net assets, revenue, and expenditures or expenses. Resources are allocated to, and accounted for, in individual funds based on the purposes for which the funds are to be spent and the means by which spending activities are controlled. The District maintains and accounts for transactions within fourteen separate funds.

Funds in the Elmhurst Park District Budget are classified into two types, governmental and proprietary. In addition, funds are organized and reported on by functional major areas. Within the governmental funds, the General Fund, Recreation Fund, Capital Improvement Fund, and Debt Service Fund are considered major funds and IMRF, FICA, Liability, Audit, SRA, Museum, and Paving and Lighting Funds are considered minor funds that are reported within their designated major fund. IMRF, FICA, Liability, and Audit Funds are presented together with the General Fund; SRA and Museum Funds are presented together with the Recreation Fund; and Paving and Lighting is presented with the Capital Improvement Fund.

State law requires that the District shows each Fund separately in the Budget and Appropriations Ordinance. Annual budget appropriations are adopted for the general, special revenue, debt service, capital projects, enterprise, and internal service funds. All annual budgets and appropriations lapse at fiscal year-end and are appropriated 20% higher than projected budget expenditures. Financial activities are recorded on a modified accrual basis of accounting.

Governmental funds are used to account for all or most of a government’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). Revenues are primarily provided by the annual property tax levy. The District uses the following governmental funds: General, Recreation, Debt Service and Capital Improvements.

Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities are provided to outside parties (enterprise funds) or to other departments within the District (internal service). Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. User charges are intended to cover the costs of these operations. Proprietary Funds include Enterprise Services, Early Bond Repayment and Sugar Creek Golf Course. Internal Service funds are used to account for the financing of goods or services provided by one department to other departments of the governmental unit on a cost-reimbursement basis. The Management Information Systems Fund is an internal service fund.

For a detailed description of the District’s fund structure and the purpose of each fund, see pages 53-5.

59 2018 BUDGET: FUND SUMMARY

Elmhurst Park District Fund Organization Chart

Governmental Funds Proprietary Funds

General Fund Recreation Fund Enterprise Fund Internal Service Fund

IMRF Museum Enterprise Services Management Information Systems

FICA Special Recreation Association Early Bond Repayment

Liability Sugar Creek Golf Course

Audit

Debt Service Fund Capital Improvement Fund

Paving & Lighting

Matrix of Fund Distribution of Expenses by Function

Sugar Creek Paving Enterprise Golf Debt Early Bond Capital and General IMRF FICA Liability Audit Recreation SRA Museum Services Course Service Repayment Improvement Lighting Function Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Park Board/Administration XXXXXXX X Marketing and Communications XXX XXXX Finance and Human Resources XXXXXXXXXX Information Technology X X X Parks XXX X XX Facilities XXX X Recreation X X XXX Enterprise Services XX Sugar Creek Golf Course X Capital/Transfers/Debt X XXXXXXX X X This chart illustrates the relationship between the functional units and funds in the aggregate (in which fund expenses are recorded for each functional unit). For a detailed chart of 2018 Function Expenditures by Fund see pages 15-6.

60 2018 BUDGET: FUND SUMMARY

GENERAL FUND Purpose The General Fund is a major For 2018, General Fund revenue is projected to increase by 10.6% over the 2017 fund and the Budget ($370,147) and expenses are projected to increase by 17.6% ($605,239). principal Overall, the General Fund exhibits a net loss of $181,899 primarily due to the use of operating fund cash and investments to finance capital projects. of the District.

Type of Fund General Fund Revenue Governmental Taxes: In the proposed 2018 Budget, the increase in General Fund tax revenue of Minor Funds 13.7% ($434,362) as compared to the 2017 Budget is primarily due to a shift in how Illinois Municipal taxes are proposed to be allocated in the 2017 Levy. Expenses in the General Fund Retirement are budgeted to contribute $80,968 towards the land acquisition debt payment and Fund (IMRF), $423,195 towards capital projects. In addition, reserves in the FICA and Liability FICA, Liability Funds are projected to exceed targeted amounts at the end of the 2017 fiscal year. and Audit Therefore, proposed taxes are reduced in FICA and Liability Funds and increased in Revenues the General Fund. As a result, the proposed property tax levy for 2018 includes a include 12.4% increase in the General Fund and totals $3,504,938. After factoring in an Taxes, allowance for unpaid taxes, total 2018 budgeted property tax revenue is $3,468,889 advertising, which is 13.4% higher than in the 2017 Budget. The General Fund also includes a donations, 21.0% ($23,287) projected increase in Corporate Replacement taxes. sponsorship, rentals (athletic Sponsorship and Donations: As compared to the 2017 Budget, Sponsorship and field user fees), Donation revenue is decreasing overall by 60.0% ($83,790) due to the prior year merchandise inclusion of donation revenue from the City of Elmhurst for the replacement of trees at sales (brick pavers, tree York Commons in accordance with terms of an intergovernmental agreement for the memorials), and City to address stormwater concerns. interest income Rentals: Rental revenue is decreasing by 16% ($24,093) primarily due to an Expenses accounting change of how revenue from adult sports leagues is allocated. In the prior include year budget, a portion of the revenue from the District’s leagues was recognized as a majority of the field usage rental revenue in the General Fund. However, in the 2018 Budget, administrative expenses for maintaining fields for the District run leagues are being recorded as a and park funds transfer from the Recreation Fund to the General Fund. functions and a portion of the facility, Merchandise Sales: Merchandise sales revenue is increasing by 16.7% ($4,300) to marketing and reflect increased community and special event merchandise and concessions sales finance/human revenue (e.g., Old Fashioned Tree Lighting, Park Palooza, etc.). resources functions Transfers: Transfer revenue of $26,368 represents the transfer from the Recreation Fund to fund parks and field maintenance expenses related to adult league programs.

Interest: Interest revenue is increasing by 87.5% ($7,000) due to anticipated increases of market interest rates. During 2017, the weighted average interest rates of investments increased to 1.10% from 0.35% one year earlier.

61 2018 BUDGET: FUND SUMMARY

General Fund Expenses As compared to the 2017 Budget, expenses are increasing overall by 17.6% ($605,239).

Wages: Wages are increasing overall by 7.3% ($122,854). The increase is primarily due to staffing changes related to the 2014-15 Staffing Study and Vision 2020 Strategic Plan implementation combined with wage adjustments resulting from the 2017 Compensation Study. The changes are a result of the following: • Added a full-time position to the Administrative Department to assist with Vision 2020 planning for an impact of $25,000 (Vision 2020); • Promoted the Division Manager of Parks to Director of Parks resulting in an increase of $15,750 (Vision 2020); • Shifted one full-time position from the Recreation Fund to the Information Technology Department resulting in an increase of $25,605 in the General Fund (2014-15 Staffing Study); • Implemented full-time Staff wage adjustments to employees who were determined to be under the minimum pay for their job level resulting in an increase of $38,848. (2017 Compensation Study); and • Added additional seasonal labor for Parks Ambassador and athletic field maintenance duties with an impact of $4,650. (2014-15 Staffing Study).

Wages are also increasing an additional $13,000 due to the proposed 2.76% average merit increase for full-time staff and is partially offset by employee turnover in the Finance and Marketing Departments.

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 General Fund Revenues Taxes 3,102,420 3,174,857 3,168,282 3,602,644 434,362 13.7% Donations, Advertising, Scholarship 22,735 64,970 139,690 55,900 (83,790) -60.0% Program Fees - 1,609 - 6,000 6,000 - Rentals, Leases 158,187 150,366 150,937 126,844 (24,093) -16.0% Merchandise Sales 23,639 30,711 25,800 30,100 4,300 16.7% Transfers - - - 26,368 26,368 - Bond, Insurance Proceeds 66,839 42,641 - - - - Interest 5,281 16,134 8,000 15,000 7,000 87.5% Total Revenues 3,379,101 3,481,288 3,492,709 3,862,856 370,147 10.6%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 General Fund Expenses Salaries & Wages 1,495,711 1,572,277 1,680,884 1,803,738 122,854 7.3% Contractual Services 932,599 1,035,542 1,151,558 1,173,317 21,759 1.9% Repairs 26,179 27,788 24,200 38,100 13,900 57.4% Supplies 434,823 438,214 473,124 505,437 32,313 6.8% Transfers/Debt 1,324,830 133,066 109,750 524,163 414,413 377.6% Total Expenses 4,214,142 3,206,887 3,439,516 4,044,755 605,239 17.6%

Net (835,041) 274,401 53,193 (181,899) (235,092) -442.0%

62 2018 BUDGET: FUND SUMMARY

Contractual Services: As compared to the 2017 Budget, Contractual Services are projected to increase by 1.9% ($21,759). The changes in the General Fund are a result of the following: • Increased Health insurance of 7.6% ($23,502) primarily due to increased staffing combined with changes in employee coverage elections; • Increased electricity charges of 22.5% ($23,000) due to increased rate charges and projected usage; • Increased Contractual Services Community events of 81.5% ($17,075) due to the addition of new events combined with increased expenses for Movies in the Park and Park Palooza; and • Increased Refuse Removal of 21.9% ($14,750) due to both increased vendor rates and increased disposal of landscape waste.

Offsetting the increases in the General Fund are the following decreases: • Decreased Finance, Banking, and Merchant charges of 89% ($41,100) due to changes in allocations to the Recreation and Enterprise Services Funds. Charges in all funds combined are expected to be 19.0% lower as compared to the 2017 Budget; and • Reduced water and sewer expenses by 28.6% ($10,000) and natural gas by 20% ($5,000) due to decreased projected usage. Repairs: Repair expenses are increased by 57.4% due to additional plumbing repairs for the replacement of water fountains and water lines and increased equipment repairs for Park Ambassador bicycles.

Supplies: Supply expenses are increasing by 6.8 % ($32,313) due to the following: • Increased Parks and Facilities supplies of 7.1% due to increased ballfield improvements, including benches and fencing improvements ($15,213), increased program supplies for AFAC groups ($5,910) and increased building supplies ($5,000); and • Increased supplies for Community Special Events ($4,200) due to the addition of new events and increased supplies for Fall Fest and Park Palooza.

Transfers: Transfers are increasing 377.6% ($414,413). In 2018, $423,195 is included as a transfer to the Capital Improvement Fund to finance 2018 projects, including the purchase of Financial and Enterprise Resource Planning Software, Parks and Facility Grounds Equipment, and Computer Workstation replacement. In addition, $80,968 is included as a transfer to the Debt Service Fund to support proposed long-term debt for the purchase of new property. The 2018 Budget also reflects $30,000 for capital project funding and $75,000 for debt service payments.

63 2018 BUDGET: FUND SUMMARY

Minor Funds in the General Fund

IMRF Fund

IMRF Fund: As compared to the 2017 Budget, the Illinois Municipal Retirement Fund (IMRF) Accounts for the Fund reflects an increase of 15.1% ($59,199) in revenue. The increase is due to activities increased Property Tax revenue of $51,569 combined with a projected increase in resulting from the Corporate Replacement Tax revenue of $7,630. The Board approved a Property Tax District’s levy increase in order for the Fund to have sufficient reserves to cover IMRF participation in obligations and meet its cash and investment (reserve) target. the Illinois Municipal Retirement Fund IMRF Fund expenses are increasing by 6.5% ($24,875) mainly due to the impact of staffing changes resulting from the 2014-15 Staffing Study and the Vision 2020 Plan Revenues implementation and due to wage adjustments resulting from the 2017 Compensation include Study. This increase is partially offset by a projected decrease in the employer IMRF A specific annual contribution rate (from 10.90% in 2017 to 10.75% in 2018). property tax levy that produces a The IMRF Fund will generate a net budget surplus (revenues over expenses) of sufficient amount to pay $34,324 to maintain healthy reserves. In all funds where IMRF is budgeted, the contributions to overall impact to the 2018 Budget is an increase of 5.2% ($31,545) as compared to the fund on the 2017 Budget. IMRF expenses are also increasing in the Enterprise Services and behalf of District Sugar Creek Funds due to staffing changes related to IMRF eligible positions, employees employee turnover and wage allocation adjustments.

Expenses 2015 2016 2017 2018 2017 vs. % Change include Actual Actual Budget Budget 2018 17 vs. 18 The payment of IMRF Department Revenues retirement plan Taxes 386,240 388,245 392,759 451,958 59,199 15.1% contributions Interest 302 489 - - - -

Total Revenues 386,542 388,734 392,759 451,958 59,199 15.1%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 IMRF Department Expenses Contractual Services 361,045 353,039 385,222 410,097 24,875 6.5% Total Expenses 361,045 353,039 385,222 410,097 24,875 6.5%

Net 25,497 35, 695 7,537 41,861 34,324 455.4%

EPD Employer Year Contribution Rate IMRF expenses are limited to the payment of retirement plan contributions 2009 8.71% based on the salaries and wages of employees budgeted in the Government 2010 * 9.58% 2011 * 10.54% Funds. The employer contribution for IMRF obligations related to all salaries 2012 11.28% and wages charged to Enterprise Funds are budgeted in the appropriate Fund 2013 11.53% (Enterprise Services and Sugar Creek Golf Course). Employees who work at 2014 11.70% 2015 10.94% least 1,000 hours annually are required by State law to participate in IMRF. As 2016 10.77% established by IMRF, employee contribution rates remain at 4.5%, while 2017 10.90% 2018 10.75% employer rates have varied as indicated in the adjacent chart.

District elected optional phase-in rate as opposed to the ARC (Annual Required Contribution ) rate. ARC was 11.34% for 2010 and 11.22% for 2011.

64 2018 BUDGET: FUND SUMMARY

FICA Fund

As compared to the 2017 Budget, FICA Fund revenues (Property Taxes) are decreasing by 43.8% ($167,729). The projected 2017 year-end cash and reserve balances for the FICA Fund exceeds the targeted balances. To reduce the surplus, the 2018 proposed FICA Fund: Budget includes reductions in taxes in the FICA Fund by $167,729. Expenses are Accounts for the budgeted to exceed revenue by $194,040, but this Fund is projected to have cash and District’s Social reserves at the end of 2018 to maintain targeted balances. Security contributions and FICA contributions for Social Security are 7.65% of salaries and wages, representing activities 6.20% for Old Age, Survivors and Disability Insurance (OASDI), and 1.45% for Revenues Medicare. Compared to the 2017 Budget, FICA expenses are projected to increase include 6.9% ($26,311) due to wage increases related to staffing changes, wage adjustments A specific annual and employee turnover. FICA expenses related to the salaries and wages charged to property tax levy the Enterprise Funds are budgeted in the appropriate Enterprise Fund rather than this that produces a Fund. In all funds in which FICA is budgeted (FICA Fund, Enterprise Services, and sufficient amount Sugar Creek Golf Course), the overall impact to the 2018 Budget is an increase of 5.3% to pay the ($32,914) due to an overall increase of budgeted wages. District’s

contributions to Social Security 2015 2016 2017 2018 2017 vs. % Change based on payroll Actual Actual Budget Budget 2018 17 vs. 18 FICA Department Revenues Expenses Taxes 382,006 384,368 383,309 215,580 (167,729) -43.8% include Interest 385 961 - - - - Social Security Total Revenues 382,391 385,329 383,309 215,580 (167,729) -43.8% payments

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 FICA Department Expenses Contractual Services 339,221 338,759 382,865 409,176 26,311 6.9% Total Expenses 339,221 338,759 382,865 409,176 26,311 6.9%

43,170 46,570 444 (193,596) (194,040) -43702.7% Net

65 2018 BUDGET: FUND SUMMARY

Liability Fund

The Liability Fund reflects a decrease in Property Tax revenue of 80.5% ($200,762) and an increase in expenses of 2.5% ($6,263) as compared to the 2017 Budget. Liability Fund: The 2018 proposed budget includes reductions in taxes in the Fund. This Fund is Records the projected to generate a net budget deficit of $206,898 (revenues minus expenses), District’s business but is also projected to have cash and reserves at the end of 2018 to meet targeted insurance and risk balances. management activities provided Contractual Services is increasing by 2.5% ($5,452) due to increased occupational by the Park District health expenses of 17.2% ($3,070) due to a rate increase in the provider for pre- Risk Management Agency (PDRMA) employment occupational health testing. It is also due to a projected increase Worker’s Compensation and Property Insurance premiums of 1.4% ($2,591). Revenues include Insurance expenses are also increasing in the Enterprise Services Fund by $2,000 A specific annual and Sugar Creek Fund by $950. Insurance premium allocations are based on a property tax levy percentage of District salaries and wages for workers compensation insurance and a percentage of District operating expenses for the remaining insurance lines Expenses include (property, liability, pollution, etc.). Costs related to the District’s participation in an 2015 2016 2017 2018 2017 vs. % Change insurance and risk Actual Actual Budget Budget 2018 17 vs. 18 management Liability Department Revenues program Taxes 254,070 255,564 249,254 48,492 (200,762) -80.5% Program Fees 426 315 - - - - Interest 70 440 - - - - Total Revenues 254,566 256,319 249,254 48,492 (200,762) -80.5%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Liability Department Expenses Salaries & Wages 26,013 26,414 26,680 27,491 811 3.0% Contractual Services 202,354 197,438 219,447 224,899 5,452 2.5% Supplies - - 3,000 3,000 - 0.0% Total Expenses 228,367 223,852 249,127 255,390 6,263 2.5%

Net 26,199 32,467 127 (206,898) (207,025) -163011.8%

66 2018 BUDGET: FUND SUMMARY

Audit Fund

As compared to the 2017 Budget, the Audit Fund reflects an increase of 5.2% Audit Fund: ($2,672) in Property Tax revenue and an increase in expenses of 5.6% ($2,845) Accounts for the due primarily to increases in salaries and wages related to changes in allocations expenditures and wage adjustments. related to the District’s annual Contractual Services overall are increasing by 4.1% ($859). Primary expenses financial audit include the annual audit which is increasing by $433. Total 2018 audit expenses in all funds combined is $22,703: $14,863 in the Audit Fund, $3,340 in the Enterprise Revenues include A specific annual Services Fund and $4,500 in the Sugar Creek Fund. A portion of the wages and property tax levy, related insurance costs for staff who are directly involved in preparing the audit are the proceeds of budgeted in this Fund. Wages are projected to increase 6.7% ($1,986) and which can only be insurance costs by 10.3% ($426). used for this purpose 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Expenses include Audit Department Revenues Employee wages Taxes 50,454 51,113 51,137 53,809 2,672 5.2% related to Program Fees ------coordinating the Interest 19 86 - - - - audit process and Total Revenues 50,473 51, 199 51,137 53,809 2,672 5.2% consulting fees for an independent accounting firm to 2015 2016 2017 2018 2017 vs. % Change conduct an audit. Actual Actual Budget Budget 2018 17 vs. 18 Audit Department Expenses Salaries & Wages 28,849 29,350 29,789 31,775 1,986 6.7% Contractual Services 16,224 18,937 21,083 21,942 859 4.1%

Total Expenses 45,073 48, 287 50,872 53,717 2,845 5.6%

Net 5,400 2,912 265 92 (173) -65.3%

67 2018 BUDGET: FUND SUMMARY

RECREATION FUND Purpose Accounts for the As compared to the 2017 Budget, Recreation Fund revenue is increasing by 7.3% provision of ($373,641) and expenses are increasing by 18.7% ($982,636). Overall, the Recreation recreational Fund exhibits a net deficit of $746,572 due to the spending down of cash and services including investment reserves by $1,038,750 for capital projects offset by a net projected sports and operating budget surplus of $292,178 (revenues minus expenses without the spend fitness, visual and performing arts, down of cash and investments) (see 2018 Budget Summary by Fund chart on page 57). youth and adult general interest, 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 camps, teens, preschoolers, Recreation Fund Revenues early childhood, Taxes 1,438,434 1,507,906 1,507,964 1,657,010 149,046 9.9% environmental, Donations, Advertising, Scholarsh 14,224 13,266 10,000 10,000 - 0.0% seniors and Grants - - 1,100 1,100 - 0.0% aquatics Program Fees 2,889,770 2,962,698 2,956,698 3,163,802 207,104 7.0% programs and Rentals, Leases 67,300 53,300 63,212 58,920 (4,292) -6.8% facilities, Passes, Memberships, Daily Use 453,753 512,250 494,808 507,285 12,477 2.5% including the Merchandise Sales 78,696 70,907 81,722 78,028 (3,694) -4.5%

Wagner Interest 3,702 11,131 2,000 15,000 13,000 650.0% 4,945,878 5,131,458 5,117,504 5,491,145 373,641 7.3% Community Total Revenues Center, and East

End and Smalley 2015 2016 2017 2018 2017 vs. % Change Pools Actual Actual Budget Budget 2018 17 vs. 18 Recreation Fund Expenses Type of Fund Salaries & Wages 2,829,443 2,785,570 3,120,080 3,377,186 257,106 8.2% Governmental Contractual Services 1,166,655 1,208,921 1,237,956 1,239,780 1,824 0.1% Repairs 23,429 51,172 76,650 57,250 (19,400) -25.3% Departments Supplies 367,748 326,910 406,195 417,415 11,220 2.8% Special Recreation Transfers/Debt 240,000 558,693 414,200 1,146,086 731,886 176.7% Association (SRA) Total Expenses 4,627,275 4,931,266 5,255,081 6,237,717 982,636 18.7% and Museum

Net 318,603 200,192 (137,577) (746,572) (608,995) 442.7% Revenues include Taxes, donations, Recreation Fund Revenue grants, scholarships, Taxes: Tax revenue is proposed to increase by 9.9% ($149,046) as compared to the program fees, 2017 Budget due to increases in Property Tax Revenue due to increased budgeted passes, daily uses, transfer revenue for capital and debt. merchandise sales, rentals and As compared to the 2017 Budget, Program Fee revenue is increasing interest income Program Fees: by 7.0% ($207,104) overall. Program fees are increasing in the following program Expenses include areas: Operating costs for • RecStation revenue is increasing 24.4% ($211,495) and Funseekers Day Camp recreation services revenue is increasing 6.7% ($12,750) both primarily due to a change in enrollment and facilities procedures. For 2018, enrollment in both programs will change to full weeks rather than individual days. This change is expected to reduce waitlists, increase revenue and enable staff to provide more consistent customer service.

68 2018 BUDGET: FUND SUMMARY

• Gymnastics revenue is projected to decrease 3.9% ($36,494) primarily due to a projected decline in the number of competitive gymnastics team participants, reducing revenue by 18% ($44,240). This is partially offset by increased recreational gymnastics revenue of 3.0% ($9,836) due to fee increases. • Adult softball league participation is projected to decrease 5.6% in 2018; however, revenue is projected to increase by 29% ($19,001) due to an accounting change of how revenue from sports leagues is allocated. In the prior year budget, a portion of the revenue from District leagues fees were allocated as field usage rental revenue; however, in the 2018 Budget, expenses for maintaining fields are being recorded as a funds transfer from the Recreation Fund to the General Fund. • Youth and Preschool Sports program revenue is decreasing by 5% ($13,601) due to a projected reduction in enrollment for preschool seasonal sports, the elimination of some contractual summer sports camps, and the reduction in fees for ice skating lessons. These reductions are partially offset by increased revenue from new offerings of additional Lit’l Kickers programs. • Performing Arts revenue is increasing by 18.5% ($61,563). Dance program revenue is increasing by 16.2% ($30,105) due to fee increases, additional enrollment for Dance Company ($13,701) and non- recital dance ($11,082), additional Adult Dance program offerings ($6,450), and increased fees for Dance Recital ($2,885). The increases are to partially offset by reduced Dance Recital participants and lower ticket sales ($4,280). Music program revenue is increasing 16.5% ($27,238) due to fee increases and additional enrollment for piano ($7,238), guitar ($4,782), voice lessons ($4,808), and Tiny Tunes ($7,276). • Early Childhood revenue is decreasing by 11.9% ($42,346) primarily due to the discontinuation of additional afternoon Sunbeams and Rainbows classes. • Pool program revenue is decreasing by 3.0% ($3,821) primarily due to decreased swim camp enrollment. • Senior Program revenue is increasing by 12% ($4,951) due to fee increases and increased enrollment in yoga and art classes and an additional luncheon. • General Interest program revenue is increasing by 3.5% ($2,735) primarily due to the projected additional enrollment for the Mother Son Dance ($7,675) and increased revenue from technology related contractual programs ($8,828) partially offset by the elimination of the Lake View Nature Center programs ($13,500). • Trips revenue is decreasing by 13% ($3,529) due to decreased enrollment in cooperative trips ($2,560) and day trips ($1,119).

Rentals: Rental revenue is projected to decline 6.8% ($4,292) as compared to the 2017 Budget. The decrease reflects the three-year average of actual rental revenue. Decreased revenue is budgeted at the following locations: Outdoor Pools ($1,780), The Abbey ($1,300), and The Hub at Berens Park ($1,112).

Passes Membership and Daily Uses: As compared to the 2017 Budget, Passes, Membership and Daily Use revenue is increasing by 2.5% ($12,477) primarily due to increased pool punch card sales which have become increasingly popular over the last three summers. The projected number of “half-price” mid-season punch cards is expected to double as compared to the 2017 Budget.

69 2018 BUDGET: FUND SUMMARY

Recreation Fund Expenses

Wages: Wages are increasing overall by 8.2% ($257,106) as compared to the 2017 Budget. Full-time wages are increasing 13.7% ($169,260). The increase is partially due to the addition of a new Division Manager position in the Facilities Department (responsible for Aquatics and The Hub operations) ($75,000), a new Strategy and Planning coordinator position in the Administrative Department ($25,000) combined with a proposed wage increase due to restructuring of registration staff ($18,000). In addition, increased wages of approximately $25,600 were recommended as a result of the 2017 Compensation Study. The balance of the variance is due to a combination of merit increases and employee turnover. Part-time wages are increasing primarily due to proposed increases to minimum hourly rate for some positions and due to proposed annual merit adjustments. Increased part-time hours for registration, sports camp, gymnastics, music, and dance program part-time staff is also being budgeted to address increased demand for these programs.

Contractual Services: As compared to the 2017 Budget, contractual services are increasing 0.1% ($1,824) due to the following: • Increased health care expenses of 13.3% ($35,648) due to the increased staff in the Administration and Facilities Departments combined with turnover and the changes to staff health plan coverage elections. • Increased contractual services for music and concert series ($6,897), dance programs ($3,840) and technology related programs ($6,575). Offsetting the increases are decreases due to the following: • Decreased contractual services in the Administration Department of 92.7% ($18,638) resulting from the shift in copier maintenance contract to the IT Department. • Decreased Finance, Banking, and Merchant charges 19.8% ($16,500) due to decreased expected fees combined with changes in allocations with the General and Enterprise Services Funds. Charges in all funds combined are expected to be 19% lower than the 2017 Budget. • Decreased contractual services for environmental programs ($10,000) offered through the Lake View Nature Center as Elmhurst participants will register directly with the Oakbrook Terrace Park District based on the new intergovernmental agreement. • Decreased contractual services for Ice Skating Programs ($5,783) as a new contractual agreement was negotiated with the Edge Ice Arena in Bensenville, offering lessons at a reduced rate compared to the Addison Ice Arena. Repairs: As compared to the 2017 Budget, Repair expenses are decreasing by 25.3% ($19,400) overall primarily due to the inclusion in the 2017 Budget of one-time facility improvement projects including refurbishing the waterslide at Smalley Pool, repainting the water features at Smalley Pool, removing loose tiles at East End Pool, and installing vinyl flooring in the Dance Studios at the Wagner Community Center. The 2018 Budget includes repair expenses totaling $57,250 primarily for building and plumbing repairs at Wagner Community Center and the Norman Smalley Pool.

Supplies: Supply expenses are increasing by 2.8% ($11,220) primarily due to an increase of furniture and equipment 35.4% ($9,454) for replacement cleaning equipment at Wagner Community Center and replacement umbrellas, chairs and a gas grill at the swimming pools and The Hub at Berens Park.

Transfers: Transfer expenses to the Capital Improvement and Debt Funds are increasing by $731,866. In 2017, $414,200 was included in transfers: $75,000 for debt service and $339,200 for capital expenditures. In the 2018 Budget, total proposed transfers are $1,146,086: $20,368 to the General Fund for adult league field maintenance, $80,968 to the Debt Service Fund for payment on principal and interest on proposed land acquisition debt and $1,038,750 to the Capital Improvement Fund primarily for the Berens Park Turf replacement project. 70 2018 BUDGET: FUND SUMMARY

Minor Funds in the Recreation Fund

Museum Fund

Museum Fund: As compared to the 2017 Budget, Museum Fund revenue is increasing by Accounts for District 1.4% ($4,015) due to higher Property Tax revenue to fund expenses. Museum museum related Fund expenses are increasing by 1.8% ($5,230). Overall, the Museum Fund program and facility exhibits a net surplus of $431. Expenses associated with holding free operations community events or rentals (custodial staff/site supervision wages, custodial supplies, maintenance, etc.) at the Wilder Mansion (e.g., non-profit Revenues include organizations and District meetings, trainings) are reflected in this fund. A specific annual property tax levy, Salaries reflect an increase of 2.9% ($3,114), which is primarily due to merit donations and program fees increases for full-time wages.

Expenses include Contractual Services reflect a decrease of 2.6% ($1,634) primarily due the Conservatory/ inclusion in the 2017 Budget of irrigation upgrades at Wilder Mansion totaling Greenhouse $5,000. This is partially offset by increased health care expenses in the 2018 operations and Budget of 13.0% ($2,965) due to changes in employee coverage elections. Wilder Mansion utilities and non-fee Repairs expenses are budgeted at the same level as the 2017 Budget and paying rental. reflect $5,500 for annual repairs to the boiler and greenhouse. Supplies

increased 10.6% ($3,000) compared to the 2017 Budget due to increased grounds supply purchases needed to maintain the Conservatory.

Transfers of $91,540 are 0.8% ($750) higher than the 2017 Budget. Included is a transfer to the Enterprise Services Fund of $77,540, representing funding for part-time wages, building maintenance, utilities, and supplies related to free community events. In addition, $14,000 is budgeted as a transfer to the Capital Improvement Fund for the Wilder Mansion Flooring Replacement project which is $750 greater than in 2017.

20152016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18

Museum Department Revenues Taxes 275,693 278,053 295,297 299,312 4,015 1.4% Donations, Advertising, Scholarships 689 1,868 400 400 - 0.0% Program Fees 807 664 700 700 - 0.0% Interest (410) 982 - - - - Total Revenues 276,780 281,567 296,397 300,412 4,015 1.4%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Museum Department Expenses Salaries & Wages 94,240 96,022 106,289 109,403 3,114 2.9% Contractual Services 49,768 46,600 63,904 62,270 (1,634) -2.6% Repairs 2,260 5,423 5,500 5,500 - 0.0% Supplies 25,386 23,684 28,268 31,268 3,000 10.6% Transfers/Debt 85,420 90,540 90,790 91,540 750 0.8% Total Expenses 257,074 262,269 294,751 299,981 5,230 1.8%

Net 19,706 19,298 1,646 431 (1,215) -73.8% 71 2018 BUDGET: FUND SUMMARY

Special Recreation Association (SRA) Fund

Taxes: As compared to the 2017 Budget, revenue is increasing by 5.3% ($36,963) Special Recreation due to an increase in Property Tax revenue by $37,063 to assist in funding additional Fund: ADA improvements at the District’s parks and facilities offset by a decrease of $100 in Accounts for the punch card fees. District’s provision of special recreation Expenses in the SRA Fund are decreasing by 3.7% ($26,702) as compared to the services 2017 Budget mainly due to a decrease in Capital project expenses. In 2017,

$260,000 was allocated in the SRA Fund primarily for accessibility improvements and Revenues include A specific annual safety surfacing replacement at the Plunkett Park playground. In 2018, $200,000 is property tax levy and budgeted for accessibility improvements at Conrad Fischer Park and $30,000 at transportation punch Eldridge Park west playground to replace the safety surfacing. cards Wages are increasing by 0.9% ($1,972) primarily due to merit increases for full- and Expenses include part-time employees. Contractual Services expenses are increasing by 0.6% District’s membership ($1,276) primarily due to increased health care expenses related to changes in in the Gateway Special employee coverage elections. Recreation Association and providing inclusionary services Overall, the SRA Fund will have a net budget surplus of $35,908 (revenues minus for Elmhurst residents, expenses) due to the budgeted spend down of $30,000 in reserves for park including accessibility accessibility improvements offset with a net operating budget surplus of $65,908 improvements (revenues minus expenses without cash and investments spend down) to replenish future reserves (see 2018 Budget Summary by Fund chart on page 57).

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 SRA Department Revenues Taxes 628,856 668,514 692,109 729,172 37,063 5.4% Passes, Memberships, Daily Uses 1,080 624 600 500 (100) -16.7% Interest 226 978 - - - - Total Revenues 630,162 670,116 692,709 729,672 36,963 5.3%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 SRA Department Expenses Salaries & Wages 191,186 208,515 229,219 231,191 1,972 0.9% Contractual Services 216,804 222,820 230,947 232,223 1,276 0.6% Supplies 300 375 300 350 50 16.7% Capital 197,500 386,000 260,000 230,000 (30,000) -11.5% Total Expenses 605,790 817,710 720,466 693,764 (26,702) -3.7%

Net 24,372 (147,594) (27,757) 35,908 63,665 -229.4%

72 2018 BUDGET: FUND SUMMARY

DEBT SERVICE FUND Purpose As compared to the 2017 Budget, revenue in this Fund exhibits an increase of 1.9% Accounts for the ($34,044) overall. Property Tax revenue is increasing by 2.0% ($23,373). Transfers accumulation of are decreasing 8.9% ($29,329) as transfers from the Early Bond Payment fund are resources required for the 52.6% ($39,815) lower as compared to 2017. The 2018 Budget also includes repayment of transfers of $80,968 from the General and Recreation Funds for the annual payment debt principal and on proposed debt acquired for the acquisition of new property in 2017. Bond interest Proceed revenue is increasing by 12.5% ($40,000) based on bond and interest payments in 2018. Expenses in this Fund are proposed to increase by 1.3% Type of Fund ($24,524) due to projected increases in the bond principal and interest payments for Governmental land acquisition debt and the Annual G.O. Rollover Bond based on the legally allowable increase in the Consumer Price Index (CPI) and other outstanding bond Department issue payments. See page 179 for a detailed overview of debt obligations. N/A

Revenues include 2015 2016 2017 2018 2017 vs. % Change Property taxes Actual Actual Budget Budget 2018 17 vs. 18 (levied for the Debt Service Fund Revenues purpose of Taxes 1,164,448 1,173,186 1,168,661 1,192,034 23,373 2.0% repaying debt), Transfers 179,165 179,965 330,715 301,386 (29,329) -8.9% Bond, Insurance Proceeds 315,000 314,410 320,000 360,000 40,000 12.5% bond proceeds, and transfers from Interest 221 652 500 500 - 0.0% other funds Total Revenues 1,658,834 1,668,213 1,819,876 1,853,920 34,044 1.87% (accumulated for the purpose of 2015 2016 2017 2018 2017 vs. % Change repaying debt) Actual Actual Budget Budget 2018 17 vs. 18 Debt Service Fund Expenses Expenses Contractual Services 5,175 4,916 10,935 6,500 (4,435) -40.6% include Transfers/Debt 1,646,341 1,648,430 1,808,941 1,837,900 28,959 1.6% Payment of Total Expenses 1,651,516 1,653,346 1,819,876 1,844,400 24,524 1.3% outstanding debt in that budget year Net 7,318 14,867 - 9,520 9,520 0.0%

73 2018 BUDGET: FUND SUMMARY

CAPITAL IMPROVEMENT FUND

Purpose As compared to the 2017 Budget, the Capital Improvement Fund exhibits a decrease Accounts for the of 27.3% ($812,781) in revenues and 31.4% ($1,193,257) in expenses primarily due cost of capital improvements not to decreased proposed capital project spending in 2018. accounted for in the Proprietary Bond proceeds are decreasing by 86.7% ($2,209,626) primarily due to the budgeted Funds (e.g. receipt of bond proceeds in 2017 issued for the financing of the land acquisition and Enterprise) development. The 2018 Budget includes proceeds of $338,958 from the annual G. O. Rollover Bond. Type of Fund Governmental Donations revenue is increasing by 888.9% ($293,350) as proceeds of $233,750 are expected to be received from Elmhurst College for their share of the expenses Department related to the Berens Park turf replacement project. The 2018 Budget also includes Paving and Lighting $55,000 in projected community donations for improving the structures within Safety Town and $20,000 from athletic field user groups for new batting cages. Revenues include Transfers of cash and investments from other Funds is increasing by 285.0% Transfers from ($1,103,495). This includes $423,195 from the General Fund, $1,038,750 from the other funds (e.g. Recreation Fund, and $14,000 from the Museum Fund for the completion of the tax revenue, cash District’s 2018 budgeted capital projects. and investments, income), grants, bond proceeds, Expenditures in the Capital Improvement Fund are decreasing by 31.4% and interest ($1,193,257) primarily due to the inclusion in the 2017 Budget of $1,907,500 for the income purchase and preliminary development of land. Contractual Services are decreasing by 100.0% due to the completion of the Vision 2020 process in 2017. Expenses Total Capital project expenses budgeted for 2018 are $2,603,408. Overall, the include Capital Improvement Fund exhibits a net deficit of $443,405 due to the planned Capital projects spend down of Capital Fund reserves (see 2018 Budget Summary by Fund chart on projected to cost page 57). $5,000 or more for operating equipment and 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 machinery or Capital Fund Revenues $25,000 or more Donations, Advertising, Scholarships 165,230 378,389 33,000 326,350 293,350 888.9% for land acquisition Grants - 400,000 - - - - and improvements Transfers 549,277 674,626 387,200 1,490,695 1,103,495 285.0% Bond, Insurance Proceeds 340,830 367,371 2,548,584 338,958 (2,209,626) -86.7% and not ongoing Interest (236) 6,007 4,000 4,000 - 0.0% facility Total Revenues 1,055,101 1,826,393 2,972,784 2,160,003 (812,781) -27.3% maintenance and repairs, which are 2015 2016 2017 2018 2017 vs. % Change budgeted in the Actual Actual Budget Budget 2018 17 vs. 18 appropriate Fund Capital Fund Expenses Contractual Services - - 92,231 - (92,231) -100.0% Capital 939,318 2,889,064 3,633,325 2,603,408 (1,029,917) -28.3% Transfers/Debt - - 71,109 (71,109) -100.0% Total Expenses 939,318 2,889,064 3,796,665 2,603,408 (1,193,257) -31.4%

Net 115,783 (1,062,671) (823,881) (443,405) 380,476 -46.2%

74 2018 BUDGET: FUND SUMMARY

Minor Fund in the Capital Improvement Fund

Paving and Lighting Fund

Paving and As compared to the 2017 Budget, Paving and Lighting revenue is decreasing by Lighting Fund: 43.7% ($70,008) due to a decrease in Transfer revenue by 100%. Taxes are Accounts for the projected to increase 1.2% ($1,101) and expenses are decreasing by 12.6% planning, ($20,218). Proposed 2018 projects ($139,987) include resurfacing and repairing of the constructing and Berens Park west parking lot and the Oaklawn Avenue parking stalls. The fund maintaining of exhibits a net deficit of $49,753 due to the planned spend down of cash and streets, investments for projects (see 2018 Budget Summary by Fund chart on page 57). roadways and other paved

areas and the 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 lighting thereof Paving & Lighting Fund Revenues Revenues Taxes 90,109 89,999 89,133 90,234 1,101 1.2% include Transfers - 45,523 71,109 - (71,109) 100.0% A specific annual Interest 69 138 - - - - 90,178 135,660 160,242 90,234 (70,008) -43.7% property tax levy, Total Revenues the proceeds of which can only 2015 2016 2017 2018 2017 vs. % Change be used for this Actual Actual Budget Budget 2018 17 vs. 18 purpose Paving & Lighting Fund Expenses Contractual Services ------Expenses Capital 105,463 147,505 160,205 139,987 (20,218) -12.6% include Transfers/Debt ------Capital projects Total Expenses 105,463 147,505 160,205 139,987 (20,218) -12.6% and paving supplies Net (15,285) (11,845) 37 (49,753) (49,790) -134567.6%

75 2018 BUDGET: FUND SUMMARY

ENTERPRISE SERVICES FUND Purpose Accounts for the revenues The Enterprise Services Fund exhibits a net deficit of $346,375 due to the spending associated with down of cash and investment reserves for capital projects ($387,966). This deficit is the District’s offset by a net projected operating budget surplus of $41,591 (revenues minus business expenses without the spending down of cash and investments) (see 2018 Budget enterprises that Summary by Fund chart on page 57). are mandated to make a profit. Enterprise Fund Revenue For these enterprises, the As compared to the 2017 budget, net revenues in this Fund are decreasing by 1.9% District’s intent is ($89,464) resulting from decreased program revenue and expenses are increasing to determine by 3.9% ($188,733) primarily related to increased capital expenses. revenues and net income Program revenue in the Enterprise Fund is projected to decrease in 2018 by 5.7% earned, as well ($78,651) as compared to the 2017 Budget mainly due to changes in membership as costs fees and benefits and due to trends in actual revenue and declines in participation in incurred for the purpose of specific program areas, including: maintaining management • Adult and Youth fitness program revenue is projected to decrease by 72.8% accountability ($48,368). In 2017, with the membership fee increase, most fitness classes that previously had extra fees became free with membership dues, and as a result, Type of Fund budgeted fees from fitness programs decreased. Proprietary • Summer Camp program revenue is projected to decrease by 13.4% ($27,085) as Revenues enrollment is expected to be lower based on participation trends from the past include two years. Donations, advertising, • Industrial Athlete program revenue is projected to decrease by 36% ($18,500) program fees, due to reduced demand. rentals, passes, memberships, • Massage revenue is projected to be 18.8% ($12,034) lower due to decreased daily uses, demand. merchandise sales, transfers, • Racquetball lessons and racquet stringing revenue is projected to be $4,400 and interest lower due to decreased demand. income The decreases in program fee revenue are offset by projected increases in the Expenses following program areas: include the operations of • Tennis leagues and tournament revenue is projected to increase by 18% Courts Plus ($10,912) due to fee increases. fitness facility, • Adult and Youth Martial Arts program revenue is projected to increase by 9.2% Wilder Mansion ($8,535) due to fee and enrollment increases. rentals, and Wilder Park • Wilder Mansion program revenue is expected to be 41% ($6,700) higher due to weddings additional program offerings. • Personal Training revenue is projected to increase by 3.9% ($5,289) due to increased demand.

76 2018 BUDGET: FUND SUMMARY

As compared to the 2017 Budget, Rental revenue is decreasing by 5.7% ($24,829) primarily due to a decrease in projected wedding rental revenue ($9,750) based on the three-year rental revenue average. In addition, court time rental is also decreasing ($9,033) due to projected declining demand.

Overall, in the Enterprise Fund, Passes, Memberships and Daily Use revenue is increasing by 0.4% ($10,016) as compared to the 2017 Budget. Membership revenue from monthly and annual fees are projected to increase by 0.9% ($25,436) as compared to the 2017 Budget due to a proposed 10% increase for the second year in a row in membership rates. However, the estimated number of new members is decreasing while the number of cancellations are increasing. Joining fees are budgeted to decrease by 23% ($15,000) due to decreased new members and more new members joining during promotional periods when joining fees are discounted.

Interest revenue is increasing by 66.7% ($4,000) due to a projected increase of the market interest earnings rate.

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Enterprise Services Fund Revenues Donations, Advertising, Scholarships - - 4,500 4,500 - 0.0% Grants 10,076 6,265 - - - - Program Fees 1,297,203 1,290,149 1,372,453 1,293,802 (78,651) -5.7% Rentals, Leases 394,966 390,099 437,039 412,210 (24,829) -5.7% Passes, Memberships, Daily Uses 2,575,713 2,607,255 2,810,115 2,820,131 10,016 0.4% Merchandise Sales 45,761 40,503 46,110 46,110 - 0.0% Transfers 1,100,973 77,540 77,540 77,540 - 0.0% Interest 7,849 16,423 6,000 10,000 4,000 66.7% Total Revenues 5,432,541 4,428,234 4,753,757 4,664,293 (89,464) -1.9%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Enterprise Services Fund Expenses Salaries & Wages 2,486,871 2,437,653 2,521,300 2,538,828 17,528 0.7% Contractual Services 1,515,176 1,484,750 1,543,834 1,601,508 57,674 3.7% Repairs 135,459 114,668 125,165 125,165 - 0.0% Supplies 317,001 304,216 346,706 341,811 (4,895) -1.4% Capital 377,199 398,423 269,500 387,966 118,466 44.0% Transfers/Debt 14 18,544 15,390 15,390 - 100.0% Total Expenses 4,831,720 4,758,254 4,821,895 5,010,668 188,773 3.9%

Net 600,821 ( 330,020) (68,138) (346,375) (278,237) 408.3%

77 2018 BUDGET: FUND SUMMARY

Enterprise Fund Expenses

In the proposed 2018 Budget, expenses in this Fund are increasing overall by 3.9% ($188,773) due mainly to an increase in Capital project expenses by 44.0% ($118,466) combined with increased Contractual Service expenses of 3.7% ($57,674).

As compared to the 2017 Budget, Wages are increasing by 0.7% ($17,528). Full-time wages are increasing by 2.7% ($28,210) due to organizational changes in staffing resulting from the 2014-15 Staffing Study, wage adjustments included in the 2017 Compensation Study, merit adjustments, and employee turnover. Part-time wages are decreasing by 0.7% ($10,682) primarily due to decreased hours for Personal Training and Kids Plus staff and is partially offset by increased expenses for group exercise staff due to additional class offerings and membership staff due to increased hours.

Contractual Services expenses are increasing by 3.7% ($57,675) as compared to the 2017 Budget. This is primarily due to increased Health care expenses of 12.2% ($28,817), resulting from turnover and changes in employee coverage elections combined with an increased number of part-time employees eligible for health insurance coverage in 2018. In addition, Finance and Banking charges are increasing by 28.7% ($17,200) due to changes in allocations to the General and Recreation Funds. Banking charges in all funds combined are expected to be approximately 19% lower than the 2017 Budget. Telephone expenses are increasing by 16.8% ($4,350) due to increased usage and Water and Sewer expenses are increasing by 9.3% ($7,000) due to higher rates.

Supplies expenses are decreasing by 1.4% ($4,895) as compared to the 2017 Budget primarily due to reduced spending for fitness programming supplies.

78 2018 BUDGET: FUND SUMMARY

EARLY BOND REPAYMENT FUND Purpose To record and One expense is listed in this Fund for the annual Transfer to the Debt Service Fund of invest the 2005 grant revenues pledged to repay a portion of the 2006 $7.5 million General proceeds of a Obligation Limited Tax Bond that financed the installation of synthetic turf fields at 2005 State Berens Park (refunded in 2014 as 2014A General Obligation Limited Tax Park grant that is Refunding Bond). The $35,900 in expenses represents the final distribution from this funding a fund being transferred to the Debt Service Fund. Overall, this Fund exhibits a net deficit portion of of $35,900 due to the spending down of cash and investment reserves. The projected annual debt service balance of cash and investments in this Fund at the end of 2018 is $0 (see page 57). payments 2015 2016 2017 2018 2017 vs. % Change Type of Fund Actual Actual Budget Budget 2018 17 vs. 18 Proprietary Early Bond Repayment Fund Revenues Interest 2,609 2,220 - - - - Department Total Revenues 2,609 2,220 - - - 0.0% N/A

Revenues 2015 2016 2017 2018 2017 vs. % Change include Actual Actual Budget Budget 2018 17 vs. 18 Interest earned Early Bond Repayment Fund Expenses on investment of Contractual Services 276 222 - - - - grant proceeds Transfers/Debt 75,715 75,715 75,715 35,900 (39,815) -52.6% Total Expenses 75,991 75,937 75,715 35,900 (39,815) -52.6% Expenses include Net (73,382) (73,717) (75,715) (35,900) 39,815 -52.6% the annual transfer of cash and investments to the Debt Service Fund for debt payment and bank fees

79 2018 BUDGET: FUND SUMMARY

SUGAR CREEK GOLF COURSE FUND

As compared to the 2017 Budget, Sugar Creek Golf Course revenues are projected to Purpose increase by 1.1% ($12,277) primarily to reflect historical trends. Expenses are Accounts for decreasing by 1.2% ($12,484) to reflect demand, supply needs and actual expenses. the revenue and expenses Overall, the Sugar Creek Golf Course Fund exhibits a net budget surplus of $27,743 related to the (revenues minus expenses). operation of the nine-hole Sugar Creek Golf Course Fund Revenue Sugar Creek Golf Course Program Fee revenue is decreasing by 1.6% ($1,800) due to decreases in Driving Range instruction by 6.5% ($1,050) and Private Instruction by 50% ($750). Type of Fund Proprietary Rental revenue is increasing by 3.1% ($5,200) overall in the 2018 Budget, which is primarily due to an increase in Riding Cart Rentals of 5.6% ($6,000) due to an Department N/A increased number of carts in the inventory combined with increased Indoor Facility Rental revenue of 8.6% ($2,500) based on the three-year average of actual revenue. Revenues The increase is partially offset by decreased Pull Cart Rental revenue of 25% ($2,700). include Rentals, As compared to the 2017 Budget, Passes, Memberships, Daily Use revenue is passes projected to increase overall by 1.1% ($7,045). Driving Range revenue is projected to memberships, increase by 12.1% ($12,985) due to a $1 rate increase per basket. Daily Use revenue daily uses, and is projected to decrease by 0.7% ($4,000) and Punch Card passes by 18.9% based on merchandise sales the three-year average of actual revenue.

Expenses As compared to the 2017 Budget, Merchandise Sales revenue is increasing slightly include by 1.1% ($1,832) primarily due to increases for beer and wine sales by 15.5% …the ($9,832). This is offset by decreased Pro-shop sales revenue of 11.1% ($5,000) and operations of decreased food sales 12.5% ($3,000) based on the three-year average of actual Sugar Creek revenue. Golf Course facility including the Sugar Creek Golf Course Fund Expenses Clubhouse, instructional As compared to the 2017 Budget, Wages are increasing by 1.9% overall ($6,958) due programs, and primarily to a merit increase budgeted to full-time wages ($6,732), and increased maintenance driving range staff ($2,805) and grounds workers ($4,400) partially offset by a reduction in cleaning staff wages ($6,000).

Contractual Services expenses are decreasing by 7.8% ($18,127) primarily due to the inclusion of engineering services of $10,000 in the 2017 Budget. For 2018, Health Care expenses are also projected to decrease by 57.4% ($16,074) due to changes in employee coverage elections. The decreases are offset by increased electricity expenses of 25% ($4,500), equipment rental expenses of 10.2% ($2,960) due to increased number of golf carts, and increased banquet expenses by 50% ($1,500) due to a fee increase for linen rentals.

Repairs are decreasing by 30.3% ($4,000) as the 2017 Budget included an additional $4,000 for the clubhouse deck repair project.

Supplies are decreasing by 5.2% ($10,977) as compared to 2017 due to decreased grounds supply expenses of 8.3% ($3,064), chemical expenses of 7.7% ($1,913), and building supply purchases of 48% ($5,500) since 2017 included $5,000 for clubhouse deck repairs. 80 2018 BUDGET: FUND SUMMARY

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Sugar Creek Golf Course Revenues Program Fees 96,005 100,937 110,775 108,975 (1,800) -1.6% Rentals, Leases 161,702 159,586 165,500 170,700 5,200 3.1% Passes, Memberships, Daily Uses 611,173 602,291 641,597 648,642 7,045 1.1% Merchandise Sales 175,706 165,128 165,000 166,832 1,832 1.1% Interest 87 1,313 - - - - Total Revenues 1,044,673 1,029,255 1,082,872 1,095,149 12,277 1.1%

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Sugar Creek Golf Course Expenses Salaries & Wages 349,676 355,404 361,904 368,862 6,958 1.9% Contractual Services 204,268 222,553 232,720 214,593 (18,127) -7.8% Repairs 9,394 7,699 13,205 9,205 (4,000) -30.3% Supplies 203,822 213,205 211,498 200,521 (10,977) -5.2% Capital 105,104 104,370 32,000 45,000 13,000 40.6% Transfers/Debt 43,321 42,455 228,563 229,225 662 0.3% Total Expenses 915,585 945,686 1,079,890 1,067,406 (12,484) -1.2%

Net 129,088 83,569 2,982 27,743 24,761 830.3%

As compared to the 2017 Budget, Capital expenses are increasing by 40.6% ($13,000). In 2018, $45,000 is included for the replacement of a fairway mower. This purchase will only be executed if it is financially feasible based on healthy Sugar Creek Golf Course Fund income levels after the third quarter of 2018 ($45,000). In 2017, $32,000 was included in capital expenses for the replacement of a greens mower.

This Fund also reflects Transfer expenses of $103,550 to the Debt Service Fund for the Golf Course portion of the 2012 G.O. Ltd. Tax Refunding Debt Certificates (from redevelopment of the Course and clubhouse) and $125,675 to the Village of Villa Park to pay the Golf Course’s portion of the debt issued by the Village (to purchase and develop the driving range).

81 2018 BUDGET: FUND SUMMARY

Internal Service Fund

Management Information Systems Fund

In 2000, the District established an internal service fund to account for the management of information technology expenses of the District. The expenses of this fund are reimbursed by the operating funds using the information technology functions of the District; therefore, the expenses net to zero in this Fund. Expenses are charged back to the appropriate operating funds. The chargebacks appear as expenditures/expenses in each of the operating funds that use the management information services and an overview of these expenses is provided on page 131.

82 2018 BUDGET: FUND SUMMARY

2018 Budget Interfund Transfer Summary

The 2018 interfund transfers are identified in the table below. Transfers appear in the budget because they require expenditure authorization, but are excluded in the “Expenditure by Function” sections of the budget document and when calculating expenditure increases as they are recorded as appropriated and expended twice; once in the fund they are being transferred from, and once in the fund they are expended from. The practice of “netting out” such interfund transfers is consistent with Generally Accepted Accounting Principles (GAAP).

Enterprise Sugar Creek Debt Early Bond Capital General Recreation Museum Services Golf Course Service Re payme nt Improvement Outside Fund Fund Fund Fund Fund Fund Fund Fund Recipients Total A Brick Paver Sales (2,250) 2,250 - B Synthetic Turf Field Rentals (2,500) 2,500 - C 2012 G.O. Limited Tax Refunding Debt Certificates (103,550) 103,550 - D 2014A G.O. Limited Tax Refunding Bond 35,900 (35,900) - E Wilder Mansion Public Events (77,540) 77,540 - F Capital Projects (433,195) (1,038,750) (14,000) 1,485,945 - G 2017 Land Acquisition Debt (80,968) (80,968) 161,936 - H Adult League Field Maintenance 26,368 (26,368) - I Village of Villa Park/Driving Range Bond Payment (125,675) 125,675 - Revenues 26,368 - - 77,540 - 301,386 - 1,490,695 125,675 2,021,664 Expenses (518,913) (1,146,086) (91,540) - (229,225) - (35,900) - - (2,021,664) Total (492,545) (1,146,086) (91,540) 77,540 (229,225) 301,386 (35,900) 1,490,695 125,675 -

The transfers in the chart above are for the following purposes: A. A transfer of $2,250 from the General Fund to the Capital Improvement Fund to utilize the proceeds of brick paver sales for capital projects; B. A transfer of $2,500 from the General Fund to the Capital Improvement Fund from Synthetic Turf Field Rental revenue for future turf replacement; C. A transfer of $103,550 from the Sugar Creek Golf Course Fund to the Debt Service Fund for the Sugar Creek portion of the 2012 G.O. Ltd. Tax Refunding Debt Certificates; D. A $35,900 transfer from the Early Bond Repayment Fund to the Debt Service Fund for a portion of the 2014 G.O. Limited Tax Refunding Bond debt payment that was used to fund synthetic turf fields; E. A transfer of $77,540 from the Museum Fund to the Enterprise Services Fund to reimburse costs (custodial staff/site supervision wages, custodial supplies, maintenance, etc.) associated with holding free community events or rentals (e.g., non-profit organization, and District meetings, trainings) in the Wilder Mansion; F. A transfer of $1,485,945 overall from the General Fund ($433,195), Recreation Fund ($1,038,750), and Museum Fund ($14,000) to the Capital Improvement Fund for various capital projects; G. A transfer of $161,936 overall to the Debt Service Fund from the General Fund ($80,968) and the Recreation Fund ($80,968) to fund debt service payments on proposed Land Acquisition Debt. H. A transfer of $26,368 from the Recreation Fund to the General Fund to fund ballfield maintenance expenses associated with Adult League programs; and I. A transfer of $125,675 to the Village of Villa Park from the Sugar Creek Golf Course Fund to pay the portion of the debt issued by the Village to purchase and develop the driving range.

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84 2018 BUDGET: REVENUE ANALYSIS

The purpose of this section is to provide an overview and analysis of all District revenue sources, including an explanation of each source and the assumptions utilized to project the estimated revenue for the proposed budget. Revenue sources are analyzed and projected utilizing the following factors: historical trends, economic influences, fluctuations due to changes in rate structures, and anticipated growth based on current year’s projections and/or actual experience. The District’s revenue policies provide the following guidance when developing revenue trends (see page 47 for a comprehensive overview of the District’s financial policies):

• The District must utilize and seek other sources of revenue to supplement the tax base, as it is not feasible to rely solely on property taxes to financially support diversified, year-round quality parks and recreational experiences. Other sources of revenue may include, but are not limited to, user and membership fees, retail sales, interest income, grants, advertising, sponsorships, donations and enterprise projects. • The District proposes fees and taxes that exceed general operating expense each year to generate a surplus for emergency reserves and future capital projects. • The District will estimate annual revenues on an objective, reasonable, and conservative basis. Revenues will be estimated based on a historical trend analysis. Staff conduct an in-depth analysis of most revenues annually including customer needs, cost to provide the service, market conditions, target markets, trends, climate impacts, and facility availability. • One-time revenues will not be used to support operating expenditures, except in emergency situations. • Special pricing strategies are developed to increase revenue (i.e., differential fees for different types of programs or time of the year, group discounts or discounts due to repeat business or for multiple family members). • Enterprise facilities and programs must generate revenue that exceeds the direct operational cost of the program/facility and have a minimum profit of 15% without utilizing tax revenue. • Since non-residents do not support the District through taxes, non-residents pay an additional fee (fair- share) of no less than 25% to assist with overhead, facility maintenance and program development expenses covered by taxes. • Budgeted revenues should be at least 60% derived from non-tax revenue sources. • The District will refinance outstanding debt whenever economically feasible.

85 2018 BUDGET: REVENUE ANALYSIS

The graph below illustrates the percentage of revenue projected for each source for 2018.

The table below summarizes revenue from all sources including projections for the 2018 fiscal year, 2017 approved budget revenue, 2015 and 2016 actual revenue, and the 2018 projected difference and percentage change in revenue as compared to the 2017 Budget. The graph on the next page provides a visual four-year comparison of revenues by source.

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18

Taxes 7,772,730 7,971,805 7,997,905 8,340,245 342,340 4.3% Donations, Advertising, Scholarships 202,878 458,493 187,590 163,400 (24,190) -12.9% Grants 10,076 406,265 1,100 1,100 0 0.0% Program Fees 4,284,212 4,356,372 4,440,626 4,573,279 132,653 3.0% Rentals, Leases 782,155 753,351 816,688 768,674 (48,014) -5.9% Passes, Memberships, Daily Uses 3,641,719 3,722,420 3,947,120 3,976,558 29,438 0.7% Merchandise Sales 323,802 307,249 318,632 321,070 2,438 0.8% Transfers 1,829,415 977,654 866,564 1,895,989 1,029,425 118.8% Bond, Insurance Proceeds 722,669 724,422 2,868,584 932,708 (1,935,876) -67.5% Interest 20,174 57,954 20,500 44,500 24,000 117.1% Total Revenues 19,589,830 19,735,985 21,465,309 21,017,523 (447,786) -2.1%

86 2018 BUDGET: REVENUE ANALYSIS

Total 2018 proposed revenue for all funds is $21,017,523. This represents a 2.1% decrease from the 2017 Budget and a 6.5% increase from 2016 actual revenues. Decreases in revenue from the prior year budget are mainly due to decreased bond proceeds, as $2.2 million was included in the 2017 approved Budget for the long-term financing of land acquisition purchases. Partially offsetting the decrease is increased transfer revenue from the General and Recreation Fund reserves to the Capital Fund for proposed 2017 capital projects ($1,461,945 in 2018 vs $339,200 in 2017) and a 4.3% ($342,340) increase in combined Property and Corporate Replacement taxes.

87 2018 BUDGET: REVENUE ANALYSIS

Revenue Sources, Assumptions and Trends

PROPERTY AND CORPORATE REPLACEMENT TAXES Definition

Taxes are a The District collects revenue from a tax levied on the Equalized Assessed Value (EAV) compulsory of real property within the District’s boundaries and is paid Corporate Replacement charge levied by a Taxes collected by the State from corporations doing business in the State of Illinois. government to As compared to the 2017 Budget, net tax revenues are projected to increase by 4.3% finance services ($342,340) based on higher property tax revenue of $326,376 combined with increased for the common Corporate Replacement Tax revenue of $15,964. The Board conservatively budgeted benefit. the tax levy for 2017 at $71,125 lower than the extension received due to discussions Assumptions at the Illinois State level concerning the proposed property tax freeze legislation. The Used to Develop 2018 Budget reflects an increase of $255,251 compared to the approved extension in Projections the prior year. The increase is primarily attributable to increases in the Consumer Price

Property taxes are Index (CPI) and the projected EAV increase of 7% for the proposed tax levy. based on trends in the Equalized Budgeted Corporate Replacement Tax is determined by reviewing the Illinois Assessed Value of Department of Revenue’s (IDOR) annual estimates of Corporate Replacement Tax real property, new distributions combined with average annual historical distributions for the District. The construction and 2018 budgeted replacement tax revenue is 9% higher than the estimate used for the collection rates. 2017 Budget. The following chart illustrates 2015 and 2016 actual total tax revenue and The corporate budget from 2017 and 2018. replacement tax is projected using collection trends.

Percent of property and corporate replacement tax revenue as compared to total revenues in proposed 2018 budget.

39.7%

88 2018 BUDGET: REVENUE ANALYSIS

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18

7,772,730 7,971,805 7,997,905 8,340,245 342,340 4.3%

Property Tax Levy The District’s tax levy is developed by establishing District priorities through the Strategic Plan and the constraints of the applicable State statutes (i.e., Property Tax Extension Limitation Act, Article 5 of the Park District Code, which outlines the taxing powers of the District, the authority to fund museums and aquariums in public parks per 70 ILCS, Pars 1290/1 and 1290/2, General Levy Authority as derived from the Illinois Code in addition to the authority granted under Article 5 of the Park District Code and the Truth in Taxation Act). The District is now in its 27th budget year under the Property Tax Extension Limitation Act (35 ILCS 200/18- 185) approved by the Illinois General Assembly in 1991. The tax cap limits tax levy increases for non-home rule units of local government and has, as intended, held down property tax increases since its inception. This legislation challenges staff to seek alternatives for funding services as costs have continued to rise at a faster rate than the CPI.

The Property Tax Limitation Law limits tax levy growth to the lesser of 5% or the CPI. This limiting rate is the maximum extended tax rate for the aggregate extension (total of the tax levies excluding Special Recreation Association (SRA) and Bond and Interest). There are also Statutory Rate Limits that individual fund levies cannot exceed.

Property Tax Extension Limitation Act and Limiting Rate The limiting rate for calculating the tax levy was developed as a result of the aforementioned Act and, as noted in the previous section, is the maximum extended tax rate that the aggregate extension may increase (5% or the increase in the CPI, whichever is lower). The aggregate extension is the total of the levies excluding SRA and Bond and Interest. The formula for deriving the limiting rate is as follows: prior year approved levy multiplied by CPI or 5%, whichever is lower, divided by the prior year levy (with any estimated % increase or decrease), less a credit for estimated new construction. The Law allows for the credit on new construction for districts to capture the increase in assessed value not represented in the prior year levy. It is crucial for this credit to occur to capture the maximum allowable increase that the District is entitled to annually.

89 2018 BUDGET: REVENUE ANALYSIS

The York and Addison Township Assessor’s Offices indicate that the EAV of property within the District is projected to increase 7.0%. Total 2017 new construction is estimated at $32,815,629. New construction is based on the prior three year average and includes an adjustment for property released from the Elmhurst Tax Increment Financing (TIF) District II. The applicable CPI for the twelve-month period ending December 31, 2016 is 2.1%.

2017 LIMITING RATE

Prior Year Levy CPI

6,080,039 X 2.1% = 6,205,896

Prior Year EAV + Prior Year New a 7% increase Construction + 7% 0.2645 (DuPage & Cook) (DuPage & Cook) 2,378,662,256 - 32,815,629 = 2,345,846,627

Based on the assumptions above, the maximum 2017 limiting rate for the aggregate extension is 0.2645 (excluding SRA and Bond and Interest) which would equate to an additional $213,000 in tax revenue. The total budgeted extended tax rate (including Special Recreation Association (SRA) and Bond and Interest) is 0.3457 as compared to the previous year’s actual tax rate of 0.3584 and represents an overall increase in tax dollars of $255,764 as compared to the 2016 tax levy received. This increase in revenue will assist in funding the proposed 2018 operating budget which includes proposed debt payments for the acquisition of new open space and a proposed spend down of cash and investments from tax-supported funds for capital improvements to complete park ADA improvements and maintain District assets.

Tax Levy Formulas for the Proposed 2018 Budget

The formulas and tax computations showing the District’s rates and extensions are illustrated in the chart below. The following bulleted list provides an overview for how the Board and staff determine the individual tax levies by fund to address the total limiting rate and legally allowable individual rate limits.

• When calculating the tax levy, the first priority is to maximize, as allowed, the General and Recreation Funds based on their flexibility in funding programs, services, and general operations. The statutory rate limits for these two funds are 0.3500 and 0.3700. In the 2018 Budget, staff propose including $80,968 in both of these funds to pay for the proposed property acquisition debt along with additional funding for capital projects, resulting in tax increases of $386,000 in the General Fund Levy and $152,500 in the Recreation Fund Levy. • The second priority is to adequately provide for the “legal obligation” levies, which are those levies that are authorized and restricted for designated purposes (i.e., IMRF, FICA, Liability, Audit and Paving and Lighting). Both FICA and Liability have reserve balances that exceed the District’s target for operations; therefore, taxes in these levies were reduced by $173,500 for FICA and $200,000 for Liability. The levies for IMRF, Audit and Paving and Lighting have been set to allow revenues to cover their expenses in the 2018 Budget and maintain their fund balances consistent with the Park Board policy and prior year levels. • The last tax levies to evaluate are the SRA and Museum Fund to determine how much, if any, remains to be split between them. The Executive Director determines the actual split and recommendations are brought to the Park Board based upon the operating plans of the two funds for the year. Staff is proposing no changes in the Museum Fund and a $30,000 increase in the SRA Fund to fund park and facility accessibility improvements.

90 2018 BUDGET: REVENUE ANALYSIS

Proposed 2018 Budget 2016 Proposed 2017 2017 Proposed % Increase/ 2017 Tax TAX FUND Statutory Extensions Levy Inc./(Decr.) Decrease(-) Rate Extended Rate Limit (DuPage & Cook) (if applicable) 1. General 0.3500 3,118,938 3,504,938 386,000 12.38% 0.1473 2. Recreation 0.3700 1,489,443 1,641,943 152,500 10.24% 0.0690 3. Museum 0.0700 302,335 302,335 0 0.00% 0.0127 4. IMRF None 384,587 431,587 47,000 12.22% 0.0181 5. FICA None 391,257 217,757 (173,500) -44.34% 0.0092 6. Liability Insurance None 248,981 48,981 (200,000) -80.33% 0.0021 7. Audit 0.0050 53,353 54,353 1,000 1.87% 0.0023 8. Paving & Lighting 0.0050 91,145 91,145 0 0.00% 0.0038

Aggregate Extension 6,080,039 6,293,039 213,000 3.50% 0.2645

9. SRA 0.0400 706,537 736,537 30,000 4.25% 0.0310 10. Bond & Interest None 1,180,439 1,193,203 12,764 1.08% 0.0502 Aggr. Extension + Bond & Interest 7,967,015 8,222,779 255,764 3.21% 0.3457

Since the tax levy does not exceed the prior year extension by more than 5%, the District is not required to hold a Truth in Taxation hearing based on Truth in Taxation Act requirements. The Park Board approved the 2017 Tax Levy Resolution on October 10, 2017, and staff will recommend approval of the 2017 Tax Levy Ordinance on December 11, 2017 (approving taxes to be levied in 2017 and extended in 2018).

91 2018 BUDGET: REVENUE ANALYSIS

Property Tax Rate and EAV

Changes in the tax levy are based on fluctuations in the Equalized Assessed Valuation (EAV). In the 5 year period from 2009 to 2014, the EAV of property within the District declined an average of 6.0% annually. The EAV increased from 2014 to 2015 by 13.2% and from 2015 to 2016 by 8.6%. As noted earlier in this section, discussions with the York and Addison Township Assessors’ offices and the City of Elmhurst indicate that for 2017, the value of property is improving with the EAV projected to increase 7.0%. Below is a chart that illustrates EAV growth and declines over the last ten years (change in the value of property in Elmhurst).

When the value of property decreases, so does the EAV of the property, which results in a smaller property tax base that taxing bodies can reinvest into the community. As illustrated below, the District’s tax rate increased slightly in 2008 from 2014, illustrating that when assessed property values decline, tax rates increase to cover the cost of maintaining expected levels of service. Since the EAV had increased in the prior two years and is projected to increase in 2017 and the levy growth rate was estimated at 2.1%, the tax rate is proposed to decrease by 0.0127.

92 2018 BUDGET: REVENUE ANALYSIS

Impact on the Taxpayer

For the 2017 tax levy, it is projected that a home’s assessed value will increase by 7% from the prior year. A homeowner with a home valued at $400,000 for the 2016 levy would have an estimated new value of $428,000, thus paying approximately $16 more in property taxes for District services. Refer to the chart below for an illustration of the comparative property taxes for various homes based on the home’s fair market value, the equalized assessed value and the 2017 budgeted tax rate.

2017 Proposed Levy for Formula used to calculate taxes above: 2016 Actual Levy 2018 Proposed Levy

Fair Market Value $400,000 $428,000 Equalization Factor 33% 7% in EAV 33% Equalized Assessed Value (EAV) $132,000 $141,240

Less $6,000 Resident Exemption $126,000 $135,240

$100s of EAV $1,260 $1,352

Park District Tax Rate per Levy 0.3584 0.3457

Approximate Park District Taxes $452 $468

House’s Fair Market Value $428,000 $600,000 $900,000 $1,200,000 Approximate EPD Taxes Annual $468 $664 $1,006 $1,348 Monthly Amount $39 $55 $84 $112 Daily Account $1.28 $1.82 $2.76 $3.69

93 2018 BUDGET: REVENUE ANALYSIS

Distribution of 2016 Property Taxes among the Major Taxing Bodies in York Township1

The following chart illustrates the District’s portion (5.40%) of the total York Township tax bill based on the distribution of 2016 property taxes among the different taxing bodies.

Share of the Tax Dollar with Other Taxing Bodies

The District’s share of the tax bill is approximately 5.4%. Alternatively, the graphic below illustrates the portion of a single dollar the District receives versus other taxing bodies, such as the City, Library, School District #205, College of DuPage, York and Addison Townships, etc.

EPD's Share of Your All Other Taxing Bodies’ Share of Tax Dollar - 5.4¢ Your Tax Dollar - 94.6¢

1York Township is used to illustrate the distribution of property taxes among the major taxing bodies since the majority of District households are located in this Township. 94 2018 BUDGET: REVENUE ANALYSIS

Park District Comparison of Tax Rates

The graph below illustrates the 2016 tax rates for park districts in DuPage County. In ranking park districts by tax rates, the District places 26 out of 39 park districts (36% percentile).

95 2018 BUDGET: REVENUE ANALYSIS

Collection rate

The 2018 budgeted property tax collections are based on a collection rate of 99% and an uncollectable rate of 1%. Taxes collected in a single year may represent collections from unpaid prior year balances as was the case in 2011 (a rate of over 100%). The following graph and chart illustrate the District’s tax collection history.

Taxes Uncollectibles Taxes Percent Year Extended Estimate Collected Collected 2006 6,383,138 4,722 6,378,416 99.93% 2007 6,758,326 5,170 6,753,156 99.92% 2008 6,686,268 12,120 6,674,148 99.82% 2009 6,825,597 10,453 6,815,144 99.85% 2010 7,015,232 24,736 6,990,496 99.65% 2011 7,154,831 (19,126) 7,173,957 100.27% 2012 7,405,810 55,269 7,350,541 99.25% 2013 7,498,728 40,135 7,458,593 99.46% 2014 7,594,227 29,516 7,564,711 99.61% 2015 7,775,473 212,054 7,563,419 97.27% 2016 7,967,015 191,485 7,775,530 97.60%

96 2018 BUDGET: REVENUE ANALYSIS

Corporate Replacement Tax Corporations doing business in the State of Illinois pay a Corporate Replacement Tax. Replacement taxes are revenues collected by the State and paid to local governments to replace funds that were lost by local governments when the authority to impose personal property taxes on corporations, partnerships and other business entities was eliminated in 1970. In 2015, the Illinois Department of Revenue discovered a $168 million calculation error in the method used to calculate disbursements to approximately 6,500 local government agencies. The overpayment to the Elmhurst Park District was $25,578 and was subtracted from the 2015 actual revenue recorded, resulting in 38% less revenue than in 2014. The 2017 estimated receipts were conservatively budgeted in light of the calculation error. The 2018 Budget includes a 9.2% ($15,964) increase from the 2017 Budget affecting the General, Recreation, and IMRF Funds.

2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Corporate Replacement Tax 195,130 200,928 172,966 188,930 15,964 9.2%

The next chart illustrates the amount of corporate replacement tax budgeted in each Fund along with the projected uncollectable amount due to nonpayment. As compared to the 2017 Budget, Corporate Replacement Taxes are increasing by $23,287 in the General Fund and by $7,630 in the IMRF Fund. Taxes are decreasing by $14,953 in the Recreation Fund due to a change in the allocation formula made to ensure that targeted fund balances are met in the IMRF fund.

General IMRF Recreation Fund Dept. Fund Total Corporate Replacement Tax 135,012 24,989 32,022 192,023 Less Projected Loss (2,257) (302) (534) (3,093) 132,755 24,687 31,488 188,930 Grand Total

97 2018 BUDGET: REVENUE ANALYSIS

DONATIONS, ADVERTISING, SPONSORSHIPS, SCHOLARSHIPS AND PARNERSHIP AGREEMENTS Definition

Donations are Donation revenue consists of funds from the City of Elmhurst resubdivision ordinance monetary funds and capital project donations. Advertising revenue is earned from the sale of given to the District advertisements in the quarterly program brochure and Wilder Mansion promotional from a government booklet. Scholarships include funds raised mainly by the People for Elmhurst Parks agency, non-profit organization, Foundation (PEP) for the recreation financial assistance program. Sponsorship individual and revenue is earned from the sale of sponsorship support for District special events. In business. the 2018 Budget, donation, advertising and scholarship revenues are projected to Advertising revenue increase by 111.7% ($209,560) as compared to the 2017 Budget. is earned from the sale of advertisements. Scholarships include 2015 2016 2017 2018 2017 vs. % Change funds raised for the Actual Actual Budget Budget 2018 17 vs. 18 financial assistance program. Sponsorship 202,878 458,493 187,590 397,150 209,560 111.7% revenue is earned from the sale of sponsorship support for District events.

Assumptions Used to Develop Projections

Trends, economic influences, and market conditions.

Percent of donation, advertising, and scholarships revenue as compared to total revenues in proposed 2018 Budget. The variance from the 2017 Budget is primarily due to 2018 budgeted proceeds of $233,750 from Elmhurst College in the Capital Improvement Fund for their share of

the expenses related to the Berens Park Turf replacement project. Projected 1.9% advertising and sponsorship for 2018 is $56,400 and is generated primarily from local business sponsorship of community events. Scholarship revenue raised by PEP is also unchanged from 2017 at $6,000. The increase is partially offset by reduced donation revenue since the prior year included $83,790 from the City of Elmhurst for tree replacement in accordance with terms of an intergovernmental agreement for the City to utilize York Commons to address stormwater concerns. The 2018 donation revenue also reflects $55,000 projected in community capital donations for improving the structures within Safety Town and $20,000 from Athletic Field user groups for new batting cages.

98 2018 BUDGET: REVENUE ANALYSIS

GRANTS Definition

A grant is a This revenue source includes grants budgeted to be received in 2018 for senior contribution or recreation programs ($1,100) which has not changed compared to the 2017 subsidy bestowed by a government or Budget. other organization (called the grantor) for specified 2015 2016 2017 2018 2017 vs. % Change purposes to an Actual Actual Budget Budget 2018 17 vs. 18 eligible recipient (called the grantee). 10,076 406,265 1,100 1,100 0 0.0% Grants are usually conditional upon certain qualifications as to the use, maintenance of specified standards, or a proportional contribution by the grantee or other grantor(s).

Assumptions Used to Develop Projections

Actual funds from grants to be received.

Percent of grant Actual grant revenue in 2015 reflects energy efficiency rebates of $10,076 in the revenue as compared to Enterprise Services Fund for Courts Plus. total revenues in proposed Actual grant revenue in 2016 is $406,265 and reflects an OSLAD grant of $400,000 2018 Budget. received for the renovation of Butterfield Park. Additional grant revenue in 2016 was $6,265 for energy efficiency rebates received in the Enterprise Services for Courts Plus. 0.01%

99 2018 BUDGET: REVENUE ANALYSIS

Definition PROGRAM FEES

Program fees are generated by In the proposed 2018 Budget, overall program fee revenue is projected to increase collecting by 3.0% ($132,653) as compared to the 2017 Budget based mainly on participation fees/charges for trends, new offerings and fee increases. participation in District programs and services such 2015 2016 2017 2018 2017 vs. % Change as camps, pre- Actual Actual Budget Budget 2018 17 vs. 18 school, before and after-care, lessons, 4,284,212 4,356,372 4,440,626 4,573,279 132,653 3.0% leagues, tournaments and racquet sports.

Assumptions Used to Develop Projections

Trends, weather impact, customer desires, facility availability, market comparison, value and the cost of providing the service.

General Fund: In the 2018 Budget, staff proposes adding $6,000 of new program Percent of revenue for a new adult community event to be held at Wilder Mansion. program fees as compared to As compared to the 2017 Budget, recreation program fee revenue total revenues Recreation Fund: in proposed is increasing by 7.0% ($207,104) overall based primarily on participation trends, 2018 Budget. program structure changes and fee increases. Program revenue highlights are listed below:

21.8% ● Rec Station revenue is increasing by 24.4% ($211,495) and Funseekers Day Camp revenue is increasing 6.7% ($12,750) both primarily due to a change in enrollment procedures. For 2018, enrollment in both programs will change to full weeks only rather than the option of full weeks and individual days. This change is expected to reduce waitlists, increase revenue and enable staff to provide more consistent customer service. • Gymnastics revenue is projected to decrease 3.9% ($36,494) overall primarily due to a projected decline in the number of competitive gymnastics team participants, reducing revenue by 18% ($44,240). This is partially offset by increased recreational gymnastics revenue of 3% ($9,836) due to fee increases. • Adult softball league participation is projected to decrease 5.6% in 2018; however, revenue is projected to increase by 29% ($19,001) due to an accounting change. In the 2017 Budget, a percentage of adult league program revenue in the Recreation Fund was budgeted as field rental revenue in the General Fund in order to account for field maintenance expenses incurred in the General Fund. However, in the 2018 Budget, expenses for maintaining fields are budgeted as a funds transfer from the Recreation Fund to the General Fund.

100 2018 BUDGET: REVENUE ANALYSIS

• Youth and Preschool Sports Programs overall are decreasing in revenue by 5% ($13,601) due to a projected reduction in enrollment for preschool seasonal sports, the elimination of some contractual summer sports camps, and the reduction in fees for ice skating lessons. These reductions are partially offset by increased revenue from new offerings of Lit’l Kickers programs. • Performing Arts revenue is increasing by 18.5% ($61,563). Dance program revenue is increasing 16.2% ($30,105) due to fee increases, additional enrollment for Dance Company ($13,701) and non-recital dance ($11,082), additional Adult Dance program offerings ($6,450), and increased fees for the Dance Recital ($2,885). The increases are to be partially offset by reduced Dance Recital participants and lower ticket sales ($4,280). Music program revenue is increasing 16.5% ($27,238) due to fee increases and additional enrollment for piano ($7,238), guitar ($4,782), voice lessons ($4,808), and Tiny Tunes ($7,276). • Early Childhood revenue is decreasing 11.9% ($42,346) primarily due to the discontinuation of additional afternoon Sunbeams and Rainbows classes ($44,049). • Pool program revenue is decreasing 3% ($3,821) primarily due to decreased swim camp enrollment. • Senior Program revenue is increasing by 12% ($4,951) due to fee increases, increased enrollment in yoga and art classes, and an additional luncheon. • General Interest program revenue is increasing by 3.5% ($2,735) primarily due to the projected additional enrollment for the Mother Son Dance ($7,675) and increased revenue from technology related contractual programs ($8,828) partially offset by the elimination of the Lake View Nature Center programs ($13,500). • Trips revenue is decreasing by 13% ($3,529) due to decreased enrollment in cooperative trips ($2,560) and day trips ($1,119). The chart below illustrates the ten-year trend in total recreation program fee revenue from 2009 to 2016 and projected revenue for 2017 and 2018. Between 2009 and 2016, actual program fee revenue has increased on an average annual basis of 5.2%. In 2009, program fees decreased due to a downturn in the economy in that year, resulting in decreased registrations and the District offering a 10% program fee discount, and in 2013 and 2014, due mainly to divesting some contractual programs and nature programs based on their long- term sustainability and to focus resources in program areas with long-term growth potential. In 2015, program revenue had increased by 10% compared to 2014 due to increases in enrollment for most programs including gymnastics, dance, music, youth sports and summer camps. In 2016, revenue increased an additional 2.6%.

101 2018 BUDGET: REVENUE ANALYSIS

Enterprise Services: As compared to the 2017 Budget, Courts Plus program revenue is projected to decrease by 5.7% ($78,651) overall mainly due to changes in membership fees and benefits and enrollment trends. Program fees are decreasing in the following program areas:

• Adult and Youth fitness programs are projected to decrease by 72.8% ($48,368). In 2017, with the membership fee increase, most fitness classes that had extra fees became free with membership dues, and as a result budgeted fees from fitness programs decreased. • Summer Camp programs are projected to decrease by 13.4% ($27,085) as enrollment is expected to be lower based on participation trends from the past two years. • Industrial Athlete program revenue is projected to decrease 36% ($18,500) due to reduced demand. • Massage revenue is projected to be 18.8% ($12,034) lower due to decreased demand. • Racquetball lessons are projected to be 25% ($2,500) lower due to decreased demand. • Racquet stringing services are projected to be 40% ($1,900) lower due to sales.

The decreases are offset by projected increases in the following program areas:

• Tennis leagues and tournaments are projected to increase by 18% ($10,912) due to fee increases. • Adult and Youth Martial Arts programs are projected to increase by 9.2% ($8,535) due to fee and enrollment increases. • Wilder Mansion program revenue is expected to be 41% ($6,700) higher due to additional program offerings. • Personal Training revenue is projected to increase 3.9% ($5,289) due to increased demand.

Sugar Creek: In the 2018 Budget, Sugar Creek program fee revenue is decreasing by 1.7% ($1,800) overall primarily due to decreased driving range instruction and private golf lesson bookings.

102 2018 BUDGET: REVENUE ANALYSIS

Definition RENTALS/LEASES Rental revenue is the amount paid by an individual or In the 2018 budget, rental revenue is projected to decrease by 5.9% ($48,014) as group to use compared to the 2017 Budget. District property including equipment (e.g. 2015 2016 2017 2018 2017 vs. % Change lockers, riding Actual Actual Budget Budget 2018 17 vs. 18 carts, racquets), indoor facilities (e.g. multipurpose 782,155 753,351 816,688 768,674 (48,014) -5.9% rooms, climbing wall, The Hub and Sugar Creek clubhouse) and outdoor facilities (e.g. athletic fields, picnic areas, outdoor pools, and formal garden wedding bowl).

Assumptions Used to Develop Projections

Trends, weather impact, customer desires, facility availability and cost to provide the service. Outdoor Park and Park Facility Rentals: Rental revenue is decreasing by 16.0% ($24,093) primarily due to an accounting change. In the 2017 Budget, a percentage of adult league program revenue earned in the Recreation Fund was budgeted as field Percent of rental revenue in the General Fund in order to account for field maintenance expenses rental/lease incurred in the General Fund. However, in the 2018 Budget, expenses for maintaining revenue as fields are budgeted as a funds transfer from the Recreation Fund to the General Fund. compared to total revenues Enterprise Services Facility Rentals: Rental revenue is decreasing by 5.7% ($24,829) in proposed primarily due to a decrease in projected wedding rental revenue ($9,750) based on three- 2018 budget. year average of revenue. In addition, Courts Plus court time rental revenue is also decreasing ($9,033) to reflect projected declining demand.

3.7% Sugar Creek Golf Course Rentals: Rental revenue at Sugar Creek is projected to increase 3.1% ($5,200) overall. Rental cart revenue is proposed to increase by 2.2% ($2,700) with the addition of six new carts in 2018 to complete the fleet of 36 carts, which is the recommendation for a nine-hole golf course. Banquet rental revenue is proposed to increase 8.6% ($2,500) to reflect the three-year average of increased demand.

103 2018 BUDGET: REVENUE ANALYSIS

PASSES, MEMBERSHIPS, AND DAILY USES Definition

Passes, memberships, and In the proposed 2018 Budget, this revenue source is increasing by 0.7% ($29,438) daily uses include as compared to the 2017 Budget primarily due to fee increases, higher projected daily use fees for Courts Plus membership revenue and to reflect current sales trends. admission to a District facility (e.g. 2015 2016 2017 2018 2017 vs. % Change pools, Courts Plus, Sugar Creek), The Actual Actual Budget Budget 2018 17 vs. 18 Hub, punch card fees for prepaid 3,641,719 3,722,420 3,947,120 3,976,558 29,438 0.7% admission for a set number of days at District facilities (e.g. pools), initiation fees for joining Courts Plus, monthly and annual dues for specific programs and facilities, season passes (e.g. pools, golf course resident cards), and permanent tee times.

Assumptions Used to Develop Projections

Trends, weather impact, customer desires, facility availability, market conditions, value Outdoor Pool Facilities: As compared to the 2017 Budget, pool pass, punch cards and the cost of and daily admission revenue is projected to increase by 2.5% ($12,077). providing the service. Punch cards have become increasingly popular over the last three summers since they are transferable and reasonably priced. Based on increased sales in 2015 through 2017, a projected increase of 27.8% ($11,340) has been budgeted in Percent of Punch Card revenue. The projected number of mid-season “half price” punch card passes, sales is expected to double as compared to the 2017 Budget. memberships, and daily use Pool pass revenue is expected to decline 0.5% ($1,700) as the number of passes revenue as purchased is expected to decline by approximately 260 passes even though the compared to budgeted fee per pass will increase $2 in 2018 (from $43 to $45 for a resident total revenues pass). The number of passes sold has declined 31% over the last five years (an in proposed average decrease of 6.3% per year in 2012 through 2017); this trend is expected 2018 budget. to continue in 2018 with 6,950 projected passes sold in 2018 as compared to 6,911 actual passes sold in 2017. The chart on the following page illustrates pool pass actual sales and revenue from 2012 to 2017 along with 2018 projected sales and 18.9% revenue.

104 2018 BUDGET: REVENUE ANALYSIS

Courts Plus: In the Enterprise Fund, Passes, Memberships and Daily Use revenue is increasing by 0.4% ($10,016) overall as compared to the 2017 Budget. In 2018, District staff will continue to expand marketing/promotions and membership sales strategies to meet membership revenue projections. As compared to the 2017 Budget, Membership revenue is projected to increase 0.9% ($10,436) due to the proposed 10% increase in membership rates for the second year in a row. However, projections reflect that number of new members will decrease while conversely, the number of cancellations will increase, which will offset the rate increase. Joining fees are budgeted to decrease 23.1% ($15,000) due to the projected decrease in new members and more new members joining during promotional periods when joining fees are discounted. The chart below illustrates the historical trend in the number of Courts Plus memberships (from 2008 to 2016) and projections (2017 and 2018) along with the amount of membership revenue collected or projected during those years.

105 2018 BUDGET: REVENUE ANALYSIS

Sugar Creek Golf Course: In the Sugar Creek Golf Course Fund, Passes, Memberships and Daily Use revenue is projected to increase overall by 1.1% ($7,045). In 2018, driving range fees are projected to increase 12% ($12,985) due to a fee increase of $1 for a basket of golf balls. Although the projected number of daily use rounds sold is similar to the prior year budget at 30,000, revenue is projected to be 0.8% ($4,000) lower than the 2017 Budget to reflect the three-year average of daily use rounds revenue.

106 2018 BUDGET: REVENUE ANALYSIS

Definition MERCHANDISE SALES

Includes revenue from the sale of goods such as As compared to 2017, net merchandise sales are projected to increase by 0.8% engraved bricks, ($2,438) in 2018 mainly to reflect trends in actual and projected sales. tree memorials, concessions, 2015 2016 2017 2018 2017 vs. % Change vending, pro shop Actual Actual Budget Budget 2018 17 vs. 18 merchandise, and racquet stringing. 323,802 307,249 318,632 321,070 2,438 0.8% Assumptions Used to Develop Projections

Trends, customer desires, market conditions, and value.

Percent of merchandise sale revenue as compared to total revenues in proposed 2018 Budget.

Special Event Merchandise Sales: Merchandise Sales revenue is increasing by 4.9% 1.5% ($800) to reflect the increased community and special event merchandise and concessions sales revenue (e.g., Old Fashioned Tree Lighting, Park Palooza, etc.).

Park and Facility Concessions and Vending: Concession revenue is decreasing by 5.4% ($3,649). Staff is projecting a decrease in concession sales based on decreased actual sales in the past two years (at The Hub at Berens Park).

Sugar Creek Golf Course: Merchandise sales revenue is increasing at the golf course by 1.1% ($1,832) based on a projected fee increase for beer and wine in 2018.

Tree Memorials: Tree memorial and Brick Paver revenue is increasing by 36.8% ($3,500) based on a three-year average of sales.

107 2018 BUDGET: REVENUE ANALYSIS

TRANSFERS Definition

Includes the transfer of funds The 2018 Budget reflects a proposed increase of transfer revenue of 118.8% from one fund to ($1,029,425) due primarily to an increase in the transfer of cash and investments for another fund. capital project expenses planned for 2018.

Assumptions 2015 2016 2017 2018 2017 vs. % Change Used to Actual Actual Budget Budget 2018 17 vs. 18 Develop Projections 1,829,415 977,654 866,564 1,895,989 1,029,425 118.8% Based on utilizing reserves and income from one Fund to support and provide funding for capital projects, debt payments and the reimbursement of operating expenses.

Percent of transfer revenue as compared to total revenues in proposed 2018 budget.

9.0% An overview of 2018 transfers is on page 83. Transfer revenue includes: • $301,336 to the Debt Service Fund from Sugar Creek Golf Course Fund ($103,550), the Early Bond Repayment Fund ($35,900), the General Fund ($80,968), and the Recreation Fund ($80,968) for the payment of debt (including fees). • $1,490,695 to the Capital Improvement Fund from the Recreation Fund Cash and Investments ($1,038,750) and General Fund Cash and Investments ($423,195) for capital projects. • $10,000 to the Capital Improvement Fund from the General Fund AFAC revenue for capital projects. • $77,540 to the Enterprise Services Fund from the Museum Fund for the expenses (custodial staff/site supervision wages, custodial supplies, maintenance, etc.) associated with holding free community events or rentals in the Wilder Mansion (e.g., non-profit organizations, and District meetings/trainings).

108 2018 BUDGET: REVENUE ANALYSIS

• $26,368 from the Recreation Fund to the General Fund to fund park and field maintenance expenses from Adult League user fees. • $14,000 to the Capital Improvement Fund from the Museum Fund income for the Wilder Mansion Flooring Replacement project. • $4,750 to the Capital Improvement Fund from the General Fund for capital projects (brick paver sale ($2,250) and synthetic turf field rental ($2,500) revenues.

109 2018 BUDGET: REVENUE ANALYSIS

BOND AND INSURANCE PROCEEDS, DISPOSAL OF FIXED ASSETS

Definition This revenue source is decreasing by 75.6% ($2,169,626) as compared to the 2017 Bond proceed Budget due to the estimated General Obligation Bonds amount of $2,200,000 to fund revenue includes new land acquisition budgeted in 2017. In 2018, staff budgeted the annual rollover the amount General Obligation (G.O.) bond proceeds of $698,958 for the payment of debt received from the sale of bonds ($360,000) and capital projects ($338,958). See page 179 for a detailed overview of in that budget debt obligations. year. Insurance proceeds are reimbursements 2015 2016 2017 2018 2017 vs. % Change from PDRMA for Actual Actual Budget Budget 2018 17 vs. 18 covered losses after the 722,669 724,422 2,868,584 698,958 (2,169,626) -75.6% deductible. Disposal of fixed assets is the gain/loss from the sale of surplus property.

Assumptions Used to Develop Projections

Outstanding debt payments owed, proceeds from insurance settlements and the disposal of fixed assets.

Percent of bond, insurance proceed, and disposal of fixed asset revenue as compared to total revenues in proposed 2018 Budget.

3.3%

110 2018 BUDGET: REVENUE ANALYSIS

INTEREST Definition

Interest revenue is the earnings Although interest rates are still low as compared to the 20-year national averages, generated from interest rates have increased in the past two years. At January 1, 2016, a three-month investments treasury bill yielded an interest rate of 0.22% and on January 1, 2017, the rate was based on the 0.53%. As of November 1, 2017, the rate increased to 1.18%. The 2018 Budget includes interest rate. a 117.1% increase in projected interest revenue as compared to the 2017 Budget. Total

Assumptions projected interest for 2018 is $44,500 which is $24,000 higher than in the prior year Used to budget. Develop Projections 2015 2016 2017 2018 2017 vs. % Change Actual Actual Budget Budget 2018 17 vs. 18 Interest rate trends, amount of funds 20,174 57,954 20,500 44,500 24,000 117.1% available for investment.

Percent of interest revenue as compared to total revenues in proposed 2018 budget.

0.2%

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112 2018 BUDGET: EXPENDITURES BY FUNCTION

The District has nine functional areas that include Administration, Marketing and Communications, Finance and Human Resources, Information Technology, Parks, Facilities, Recreation, Enterprise Services, and Sugar Creek Golf Course. In this section, expenditures are presented according to the District’s major functional areas rather than by Fund. By reviewing, linking, and reporting long-range plans and budget allocations according to the functions, programs, and/or activities of each of the District’s organizational areas as part of the budget process and in the Budget document, the Board, staff, and public can review, evaluate, and understand the role of each organizational area, the services it provides, its relationship to the other organizational areas and how resources were allocated in the budget to achieve District goals.

In addition to the 2015 and 2016 actual, 2017 approved budget and 2018 proposed budget figures by functional area,1 this section includes functional area missions, responsibilities, 2017 accomplishments and 2018 work plan tactics organized by the Vision 2020: Strategic Plan Objectives, expense highlights, future outlook and performance measures. The functional areas are Administration, Marketing and Communications, Finance and Human Resources, Information Technology, Parks, Facilities, Recreation, Enterprise Services and Sugar Creek Golf Course. Transfer, capital and debt expenditures are not presented in this section. The chart below illustrates the total expenditures for all the functions and the difference and percent change between the approved 2017 and proposed 2018 Budgets. The graph below illustrates the four-year comparison of total expenditures by function (2015 and 2016 Actual, 2017 Budget and 2018 proposed Budget). The 2018 proposed function budgets illustrate a 3.0% (461,577) overall increase in expenditures as compared to the 2017 approved budget. Expenditures by Function1 Difference % Change Function 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Park Board/Administration2 516,582 589,525 703,059 649,811 (53,248) -7.6% Marketing and Communications 535,447 631,357 667,378 678,856 11,478 1.7% Finance and Human Resources 1,109,900 1,075,927 1,175,090 1,210,512 35,422 3.0% Information Technology 604,406 463,849 668,357 760,287 91,930 13.8% Parks 1,378,075 1,428,148 1,498,964 1,769,889 270,925 18.1% Facilities 2,368,666 2,382,609 2,561,029 2,629,967 68,938 2.7% Recreation 3,115,165 3,196,477 3,530,319 3,567,814 37,495 1.1% Enterprise Services 3,695,169 3,626,904 3,768,749 3,794,783 26,034 0.7% Sugar Creek Golf Course 728,493 759,122 778,777 751,381 (27,396) -3.5% Total 14,051,902 14,153,919 15,351,722 15,813,300 461,577 3.0%

1Excludes capital, transfers and debt expenses 2Includes Park Board expenses such as continuing education, dues, and public relations. Board policy states that the Executive Director must budget no less than $20,000 for Board expenses. 113

2018 BUDGET: EXPENDITURES BY FUNCTION

The pie chart below illustrates the percentage of expenditures for each functional area as compared to the total expenditures by function.

The pie chart below on the left illustrates the percent of full-time equivalent3.2(FTE) employees for each functional area as compared to the total number of District FTE employees while the chart on the right includes the number of FTE employees for each functional area budgeted in 2017 and proposed for 2018 (increase of 1.5 overall in 2018). This increase is a combination of the addition of one full-time Administration and one full- time Facilities position offset by the elimination of one full-time Enterprise Services position, combined with an increase in part-time budgeted hours. In addition, three full-time Facility function positions were moved to the Parks function and one Recreation position was moved to the Information Technology function. Finally, additional hours for part-time and seasonal Parks staff were added to the 2018 proposed budget in the Parks function, equivalent to 1.5 full-time positions.

Bugeted Full-time Equivalents 2017 2018 Administration 4.3 5.3 Marketing and Communication 4.2 4.4 Finance/Human Resources 7 7 Information Technology 3.3 4.3 Parks 17.8 21.2 Facilities 43 41 Recreation 57 57 Enterprise Services 59 57 Sugar Creek Golf Course 10.3 10.2 Total 205.9 207.4

3FTEs are a calculation of the number of full-time equivalent employees based on a 2,080 hour work year and include full- and part-time.

114 2018 BUDGET: EXPENDITURES BY FUNCTION

Position Inventory by Function

INCREASE PERCENT FY2015 FY2016 FY2017 FY2018 (DECREASE) OF Actual Actual Budget Budget FY '17 to FY '18 TOTAL

Administration 3.8 4.1 4.3 5.3 1.0 3% Marketing and Communication 3.6 4.3 4.2 4.4 0.2 2% Finance/Human Resources 7.0 7.0 7.0 7.0 0.0 3% Information Technology 3.4 3.0 3.3 4.3 1.0 2% Parks 19.4 20.2 17.8 21.2 3.4 10% Facilities 43.2 40.7 43.0 41.0 -2.0 20% Recreation 51.9 50.9 57.0 57.0 0.0 27% Enterprise Services 61.4 60.0 59.0 57.0 -2.0 27% Sugar Creek Golf Course 10.3 10.3 10.3 10.2 -0.1 5%

TOTAL FULL TIME EQUIVALENT 204 200.5 205.9 207.4 1.5 100%

FTE's are a calculation of the number of full-time equivalent employees based on a 2,080-hour work year and include full and part-time

115 2018 BUDGET: EXPENDITURES BY FUNCTION

Mission ADMINISTRATION To provide

oversight and direction to the Description operational and The Administration function facilitates the execution of Board policies as established policy functions of in the Board’s Executive Limitation policies and long-range objectives as articulated the District based in the Board’s Strategic and Comprehensive Plans, provides staff support for the on the policies of Board of Park Commissioners, oversees the budget and capital planning processes, the Board of Park maintains legal documents and contracts, acts as the District’s legal, legislative, Commissioners, long-range plans intergovernmental liaison, and election official, and oversees the day-to-day and budget operations of the District.

43 Funding Sources 2017 Accomplishments

Property taxes and 2013-17 Strategic Plan Themes interest income

Customer Centered Revenues and expenses in… ● Continued to engage the community during the Vision 2020 process, including General (includes hosting three Open Houses (one in March with 15 participants and two in May the IMRF, FICA, (morning and evening) with 75 total participants) and as a follow-up to the May Liability, and Audit Open Houses, conducted an online survey for the community to prioritize Departments), potential action items (428 respondents). Recreation (includes Special ● Presented the community an overview of the Vision 2020 process, key findings, Recreation and future initiatives at the District’s State of the Park District address in October. Association) and Enterprise ● As part of the Vision 2020 process, completed an on-site assessment and Services Funds analysis of District parks and facilities (excluding buildings renovated after 2005) and evaluated recreation programing, including a program life cycle, classification, partnership, and marketing effort analysis after identifying areas needing further review during the 2014-15 Program Plan and Service Analysis process. ● Approved (Park Board) the District’s Vision 2020: 2018-22 Comprehensive and Full-time 2018-20 Strategic Plans. equivalent staff ● Following approval of the Vision 2020 Plan, integrated Plan priorities and recommendations into the District’s Long-range Capital Plan. 5.3 ● Based on the Vision 2020 feedback collected and key findings, determined the next steps for addressing the need for an indoor sports facility (e.g., seek partners, assess location possibilities, etc.). ● Based on an independent architectural assessment of the 135 Palmer Drive property and Vision 2020 feedback and key findings, determined next steps for evaluating the future use of the building and site.

4 The Accomplishments section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets.

116 2018 BUDGET: EXPENDITURES BY FUNCTION

● Acquired, demolished, and restored to open space two single family properties adjacent to existing parks (447 W. Armitage Avenue located adjacent to Berens Park and 207 N. Hampshire Avenue located northeast of East End Park). ● Undertook the Illinois Department of Natural Resources Conversion process after the Park Board approved the purchase of the former trailer park property at 0S761 Old York Road (replacing the western portion of Golden Meadows Park deeded to the City of Elmhurst in April to assist in the City’s stormwater management efforts along with a smaller portion of land at 207 N. Hampshire Avenue). ● As part of the conversion process described above, held a public meeting in July to gather community feedback regarding the Old York Road property.

Fiscal Agility

● Following approval of the final Vision 2020 Plan by the Park Board in July, integrated Vision 2020 Plan priorities and recommendations into the District’s Strategic Work Plan, Long-range Financial Plan, and 2018 Operational Budget. ● Recommended to the Board and the Board approved the financial plan for long-term funding of new park property purchases (i.e., 135 Palmer Drive, 207 Hampshire, and 447 Armitage Avenue).

Improvement through Collaboration and Innovation

● Re-established Park/City/School Committee to discuss and address cooperative issues, plans, and initiatives to facilitate positive and effective intergovernmental relations. ● Formed the Vision 2020 Work Group to ensure engagement and representation from all departments and levels of the organization during the planning process. ● Created a staff task force to develop an implementation and enforcement plan for the District’s new tobacco use regulations. ● Continued to implement the recommendations in the 2014-15 Staffing Study, including completing an evaluation of the responsibilities and work plan of the GIS Specialist after a staff resignation and converting the position to an Information Technology help-desk position and transferring crew members engaged in athletic field maintenance from the Facilities Division to the Parks Division, along with Park Ambassador responsibilities. ● Working with GovHR, presented the 2017 Compensation Study final draft report to full-time staff and the Board in May, explaining the scope, purpose, and outcomes of the study. ● Working with the Finance and Human Resources Department, assessed how the recommended new full- time salary schedule in the 2017 Compensation Study would impact the 2018 Budget and created a process for conducting a similar in-house compensation study to review and update part-time salary ranges. ● Continued to improve the reporting of Strategic Plan performance by adding new measures and utilizing the reporting capabilities of RecTrac Registration software. ● Began the Distinguished Agency (DA) Reaccreditation process by completing the comprehensive self- evaluation form required to apply for reaccreditation, meeting with the District’s assigned mentor, and starting the compilation of documentation to meet DA standards. ● To improve both the District’s ability to provide services on a day-to-day basis and be best positioned to achieve the large-scale strategic priorities in the Vision 2020 Plan, reorganized in the Parks and Facilities Department (separated the two Departments, promoted the Division Manager of Parks to Director of

117 2018 BUDGET: EXPENDITURES BY FUNCTION

Parks, hired a Division Manager of Aquatics & The Hub) and created a new full-time staff position of Strategy and Planning Specialist in the Administration function. created a new full-time staff position

Addressed the following Green Team initiatives:

o continued to implement action plan to improve the District’s IPRA Environmental Report Card score, resulting in a 4% score increase as compared to 2016;

o tracked expenses associated with energy efficient and “green” product purchases, allowing the District to recognize actual dollars spent on being a sustainable organization;

o implemented a single uniform waste recycling program for internal use to create equal standards and expectations for waste recycling among all Departments;

o with the Employee Relations Committee, hosted a staff park cleanup event for Earth Day at Wild Meadows Trace;

o hosted an educational session on hazardous waste recycling with the Safety Kleen account representative; and

o presented an update on the Green Team’s 2016 accomplishments and future plans at a full-time all- staff meeting.

Continuous Improvement through an Empowered Team

● Finished the 360 Degree Lunch and Learn leadership workshop program with sixteen mid-level supervisory staff and provided participants with the opportunity to complete an anonymous online evaluation of the program. ● As a follow-up to the 2016 Board assessment process, developed an “exit” interview for outgoing Board members to effectively transfer knowledge to current and new members, which was completed by former Commissioner Pelosi at the end of his term and shared with the Board. ● As part of the Vision 2020 process, held a full-time staff workshop to review feedback from the December 2016 full-time staff meetings and the Community Survey and Organizational Culture Survey results and to begin development of the District’s organizational values. ● Based on the outcomes of the Vision 2020 Organizational Culture survey, conducted three part-time staff open forums (over 130 participants) and an online survey (37 respondents) to gather feedback on the areas of organizational culture which part-time staff rated low. ● During the Vision 2020 process with the involvement of the Park Board and full-time and part-time staff, reviewed and revised the District’s Mission and Vision Statements and developed Organizational Values to guide implementation of the District’s future strategy and operations.

Other

● Worked with the Board Policy Committee and full Park Board to develop and approve an amendment to the Park and Facility Use Ordinance banning tobacco use on all District property, including compiling and presenting relevant research and evaluating options for changing the District’s tobacco use regulations. ● Developed an implementation and enforcement plan for the District’s new tobacco use regulations and communicated the new regulations to staff and the community. ● To ensure successful implementation of the final year of the 2013-17 Strategic Plan, assessed and revised the 2017 Strategic Work Plan at mid-year.

118 2018 BUDGET: EXPENDITURES BY FUNCTION

● Acted as an election official and conducted the 2017 Commissioner consolidated election process in DuPage and Cook Counties. ● Updated the Park Board Commissioner Orientation Manual and oriented Commissioner Sheehan to the District and Board. ● Digitized certificates of insurance to improve management, access, and storage of these documents and migrate to a paperless system. ● Digitized 3,500 brick paver cards categorizing by paver location. ● Began a comprehensive review and update of the District’s Administrative Policy Manual. ● To improve the management of Park Board documents, provide a transparent web presence to the community, and improve Board meeting attendees’ experience as they navigate through agenda items, began utilizing cloud-based BoardDocs software internally and provided training for staff and Commissioners with the goal of launching the site for public use January 2018.

2018 Work Plan54

Vision 2020 Strategic Themes

Meet Community Needs for Parks, Open Space, and Outdoor Amenities

● Determine approach for and begin building dog park. ● Continue to conduct park and facility assessments to assess impact of Vision 2020 implementation and determine future capital planning priorities.

Meet Community Needs for New and Existing Indoor Recreation Space

● Finalize future of 225 Prospect and small recreation buildings based on evaluation of preschool business model. ● Determine future of Palmer Drive site/building. ● Determine approach to indoor sports facility.

Sustainable Revenue Strategies and Funding Options

● Determine approach to referendum (e.g., hire firm).

Employee Growth and Development

● Improve the reporting and analysis of District performance, including trend analysis and use of District software (e.g., data mining, dashboards). ● With Information Technology Department staff, research and begin implementing dashboard software that will facilitate the reporting and tracking of District performance.

5The Work Plan section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets. 119 2018 BUDGET: EXPENDITURES BY FUNCTION

● With the Finance and Human Resources Department, implement 2017 Compensation Study and complete review of part-time salary structure. ● Facilitate workshops to engage staff in utilizing the data collected to address Vision 2020 priorities and recommendations and for other District and Department planning (e.g., budget, capital, training, etc.). ● Strengthen the District’s organizational/work culture by addressing weaknesses identified during the Vision 2020 process. ● Distribute the Vision 2020 Plan Organizational Culture Survey to all employees to assess the impact of implementing Plan priorities and other changes to the organizational culture.

Other

● Continue to coordinate the IAPD/IPRA Distinguished Agency (DA) re-accreditation process and complete the evaluation process, including working with the District’s mentor and staff to meet compliance with the DA standards, compiling the documentation to present to the evaluation team to illustrate compliance, and undergoing the evaluation with the DA evaluation team. ● Begin discussions about the future disposition of the Lizzadro Museum building that is anticipated to be vacated in 18-24 months. ● As part of the Green Team’s work plan, review and update the District’s Environmental Policy, assess progress and implementation of the universal recycling program, and continue staff engagement through educational programs and updates. ● Undergo a comprehensive review of the Board Policy Manual with the Board Policy Committee. ● Complete the comprehensive review and update the District’s Administrative Policy Manual. ● Review and update the District’s revenue and expense policies to reflect the District’s cost recovery model. ● Hire, train, and orient new Administrative Strategy and Planning Specialist. ● Launch BoardDocs software for public access in January 2018.

2018 Budget Highlights

Overall: The Administration function budget is decreasing by 7.6% ($53,248) as compared to the 2017 Budget due mainly to a decrease in Contractual Services of 29.6% ($111,876) offset by an increase in Wages of 18.5% ($58,628).

In Wages, full-time wages are increasing by $54,090 primarily due to adding a new full-time position of Strategy and Planning Specialist to the Administrative Function (impact of $50,000). With the approval of Vision 2020, the Administrative function needs increased staff support to ensure sufficient resources are available to address the high priorities in the Vision 2020 Plan, primarily potential new facility development/redevelopment, a referendum campaign and strengthening the organizational culture while also completing ongoing administrative functions such as long-range plan implementation and monitoring, capital budget and policy development, and Distinguished Agency coordination. Full-time wages are also increasing due to the merit wage increase and to implement the 2017 Compensation Study ($4,090).

In Contractual Services, Consulting is decreasing by $91,903 (173.4%) due to completion of the Vision 2020 process in 2017. In the 2017 Budget, the Board approved $129,903 to complete the planning process ($37,672 in the General Fund and $92,231 in Capital Improvement Fund). In 2018, staff propose allocating

120 2018 BUDGET: EXPENDITURES BY FUNCTION

$38,000 in the General Fund to cover the potential cost of a referendum planning firm to address the 2018 Strategic Work Plan priority of determining an approach to a referendum. Therefore, the total amount budgeted in Consulting ($53,000 as compared to $144,903 in 2017) reflects the $38,000 for the referendum consultant and $15,000 for grant research and writing professional services. Contract Services is also decreasing by 93% ($37,772) due to shifting copier oversight to the Information Technology function since this equipment includes specialized technology and is linked to the District’s IT network. These decreases are offset by a 15% increase ($14,601) in in health care, IMRF and FICA primarily related to the addition of a full- time employee and slight increases in proposed telephone ($1,661) and employee relations expenses ($1,300).

Future Outlook

The Future Outlook for the Administration Function will be driven by the implementation and monitoring of the Vision 2020 Plan, which updated the District’s Strategic and Comprehensive Plans. This Plan will drive District strategic priorities from 2018-20 and capital priorities from 2018-22. In 2018 and future years, staff will be focused on executing the Strategic Work Plan, which addresses the key findings and high priority strategies identified during the planning process. Administrative staff will also facilitate the strengthening of the District’s organizational/work culture to ensure successful implementation of the District’s long-term strategy and continued recruitment and retention of excellent staff. Staff will also improve the tracking, analysis, and reporting of District performance to monitor implementation of the Vision 2020 Plan (assessing if targeted goals are being met) and make adjustments to District work plans to improve outcomes.

Expenditures by Object: Park Board/Administration5 Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 287,355 306,079 316,685 375,313 58,628 18.5% Contractual Services 220,076 275,123 378,374 266,498 (111,876) -29.6% Repairs 0 0 0 0 0 0.0% Supplies 9,150 8,323 8,000 8,000 - 0.0% 516,582 589,525 703,059 649,811 (53,248) -7.6% Total

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Performance Measures: Administration 2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) % of Capital Budget Dedicated to Addressing Comprehensive Plan Recommendations 74% 68% 52% -16% -23.5% % of Strategic Plan Initiatives In Progress6 59% 0% 38% 38% 0% % of Strategic Plan Initiatives Accomplished6 24% 72% 63% -9% -12.5% % of Strategic Plan Initiatives Deferred6 14% 28% 0% -28% -100.0% 6 2016 Actual based on 2016 Strategic Plan Progress Report for 2013-17 Strategic Plan (29 Initiatives), 2017 Projected Actual based on 2017 Strategic Plan Progress Report for 2013-17 Strategic Plan (29 Initiatives), and

2018 Projected based on 2018 Strategic Work Plan for Vision 2020 Plan (16 Tactics Total). In Progress category does not include accomplished initiatives or tactics.

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Mission MARKETING AND COMMUNICATIONS To provide communication and Description education internally and externally for The Marketing and Communications Department develops marketing plans, creative local, regional and ideas, and promotional execution for the District’s facilities, events, programs, and state citizens of the fundraising efforts that achieve District strategic goals and objectives related to Park District; to support and manage memberships, participation, and customer involvement and provides strategic the use of guidance in marketing areas, including pricing, promotion and event development. volunteers; to provide a resource The Department manages all District community events and community outreach for the People for efforts enhancing customer experiences with the District, develops and grows Elmhurst Parks community relationships, improving public relations and publicity for the District and Foundation; and to recruits, manages, and reports on District volunteer efforts and provides a resource seek alternate for the People for Elmhurst Parks (PEP) Foundation. sources of revenue including advertising The Department also develops and manages content, photos, news stories and and corporate sponsorships promotion on all social media sites and District websites and writes, edits, and proofs District communications, including program guide, annual report, and customer communications. In addition, the Department develops and manages content and Funding Sources distribution for District communication vehicles, including customer newsletter, Property taxes, employee newsletter, Abbey News, District 205 Fun Times, and District press advertising, releases. Finally, the Department builds revenues through event and program sponsorships and sponsorships and program guide advertising. interest income 2017 Accomplishments3 Revenues and expenses in… 2013-17 Strategic Plan Themes General (includes the IMRF and FICA Customer Centered Departments), Recreation (includes ● Developed a targeted approach to e-newsletter communications as well as SRA and Museum Courts Plus mailings by utilizing data from RecTrac and working closely with other Departments) and Enterprise Services departments to better match messaging with audience needs and wants. Funds ● Created the Fun Guide, which serves as a comprehensive marketing piece to showcase District offerings and is sent to new residents, distributed at community events, and available in District facilities. Full-time ● Utilized data derived from the community needs assessment to develop customer equivalent staff centered messaging and plan more adult events. 4.4 ● Working with the Information Technology Department, made several improvements to the EPD website, including the development of a new interactive map and overhauled the Wilder Mansion website. ● Working with the Parks and Facilities Departments, solicited feedback from the community regarding park openings and issues related to the parks, including

3The Accomplishments section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets. 123 2018 BUDGET: EXPENDITURES BY FUNCTION

collaborating on the Conrad Fischer public input meetings and creating allergy awareness based upon a resident request. • Solicited event attendee feedback onsite during events. • Held the first Movie on the Green, an event geared toward adults, at the Sugar Creek Golf . • Added a second time slot to Santa at the Mansion after overwhelming response from the community in 2017. • Communicated the new tobacco ban regulations to the community and staff, including creation of an informational page on the District’s website, a pocket card, and temporary signs in the parks.

Fiscal Agility

• Conducted monthly meetings with Courts Plus staff to review return on investment (ROI) for monthly promotions. As of October 31, 2017, the majority of new members, who joined as a result of a promotion, exceeded numbers in 2016. • Focused pool marketing efforts on changes made to offerings based on the results of the 2016 Pool Pass Holder Survey, Improvement through Collaboration and Innovation • Included volunteer opportunities in the staff e-newsletter and emailed to staff when event volunteers were needed. Continuous Improvement through an Empowered Team • Conducted customer service training for the Finance and Human Resources department. • Developed and distributed a survey to collect feedback from The Abbey participants. • Included more departmental updates in the staff e-newsletter and brainstormed other ways to increase staff communication and raise awareness of what’s happening throughout the District.

2018 Work Plan54

Vision 2020 Strategic Themes

Innovative Programming to Meet Community Needs

• Working with the Recreation Department and Enterprise Services, plan, implement and evaluate new programs and events, including a new event geared towards adults.

5The Work Plan section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets.

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Exceptional and Consistent Guest Experience

• Establish a customer service committee to develop and roll-out a Districtwide customer service model. • Based on the District’s new customer service model, address customer service staffing needs throughout the District. • Working with the Facilities Department, continue educating the community about the District’s new tobacco ban regulations, including creating and installing permanent signage in parks, making announcements at special events, and educating youth sport affiliates. • Conduct on-site surveys at special events to gauge satisfaction levels.

Sustainable Revenue Strategies and Funding Options

• Implement new Courts Plus member retention strategy to increase focus on retaining current members versus attracting new members. • Evaluate sponsorship and advertising program to develop potential growth areas, including expanding on the athletic field banner program as well as potential naming rights (Vision 2020 Plan).

Employee Growth and Development

• With Administration, educate staff on the Vision 2020 goals and their role in those goals. Increase engagement with part-time staff through additional communication forums such as social media to post event announcements, important dates, volunteer opportunities, share photos, and recognize staff when they go above and beyond.

2018 Budget Highlights

As compared to the 2017 Budget, the Marketing and Communications function budget is increasing by 1.7% ($11,478). Wages are decreasing by 4.0% ($11,355) as compared to the 2017 Budget primarily due to full- time staff turnover resulting in an 8.8% ($20,124) decrease in salaries and is partially offset by increased wages for part-time staff of 17% ($8,769) due to increased part-time hours for a Marketing Intern and a special event staff position.

Contractual Services are increasing by 4.8% ($17,683) overall as compared to the 2017 budget. The increase is primarily due to higher expenses for Park Palooza, Fall Fest, Movies in the Park, and a new special event ($17,075), increased health insurance premiums ($5,357) related to employee’s coverage elections, and increased continuing education expenses for customer service training ($3,000). This is partially offset by a reduction of public relations expenses ($7,950) used in 2017 to reflect an additional one-time Courts Plus budgeted promotion expense.

Supplies are increasing by 35.7 % ($5,150) primarily due to increased expenses for special events and new business cards to reflect job title changes resulting from the 2017 Compensation Study.

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Future Outlook

The Future Outlook of the Marketing and Communications function indicates continued movement into electronic media such as websites and social media and an emphasis on targeted niche approaches to marketing of programs, resulting in additional expenditures for online marketing and partnerships. In 2017, the District surpassed 5,000 followers on Facebook, with the total number continuing to grow daily. Staff has also begun to incorporate video in promotions, which is trending in the industry.

The competitive market for Courts Plus memberships will increase with the opening of new fitness centers in 2018-19. The District must continue to be both effective and efficient with marketing expenditures to attract and retain new members. A member retention plan developed will continue to be a focus moving into 2018 in addition to the launch of the “Courts Plus Perks” program.

Expenditures by Object: Marketing and Communications Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 238,323 268,091 280,840 269,485 (11,355) -4.0% Contractual Services 288,438 350,877 372,103 389,786 17,683 4.8% Repairs 0 0 0 0 - 0.0% Supplies 8,686 12,389 14,435 19,585 5,150 35.7% Total 535,447 631,357 667,378 678,856 11,478 1.7%

Performance Measures: Marketing and Communications 2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Volunteer Hours 1,755 1,800 1,900 100 5.6% Facebook Following-Likes 4,700 5,500 6,000 500 9.1%

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Mission FINANCE AND HUMAN RESOURCES To provide efficient, quality financial and Description human resources services for the Finance Division: To plan, develop, manage and maintain the financial operations internal and of the District in the areas of finance, auditing, payroll, investments and accounting. external customers of the Elmhurst Human Resources/Risk Management Division (HR): To plan, develop, manage Park District on a and maintain human resources (compensation, benefits administration, employee timely basis in relations, training) and safety functions (risk management, safety claims) for the accordance with District. Federal, State, and local regulations, 3 District policies, the 2017 Accomplishments Strategic Plan and sound business 2013-17 Strategic Plan Themes practices Funding Sources Fiscal Agility

Property taxes and • Analyzed program indirect costs and created an allocation percentage for interest income assigning indirect costs for programs and services which enables program

Revenues and managers to more accurately monitor and report on program cost recovery to the expenses in… targeted goals.

General (includes the IMRF, FICA, Improvement through Collaboration and Innovation Liability, and Audit Departments), • Administered and included the recommendations from the District’s 2017 Recreation Compensation Study in the 2018 proposed budgeted wages. (includes SRA and Museum • Consolidated the Lead Accounting Clerk position in the Finance and HR Departments), Department with the Financial Operations Supervisor position from the Enterprise Services Enterprises Services Department, thus eliminated the Lead Accounting Clerk and Sugar Creek position and moved the Supervisor position to the Finance and HR Department. Golf Course Funds • With the Recreation and Enterprise Services Departments, moved all responsibility of the regular and monthly customer billing process to the Finance Department. • Working with the Information Technology Department, became fully compliant Full-time with Europay, Mastercard and Visa (EMV) processing standards by transitioning equivalent staff from Plug ‘N Pay credit card processing to Cardconnect.

• With the Information Technology Department, reviewed six different payroll, 7 human resource management and financial software solutions through vendor demonstrations of software performance, implementation procedures, software integration with other District software, and evaluated detailed quotes of total expenses.

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Continuous Improvement through an Empowered Team • Published additional training opportunities on the employee communication website. • Improved recruiting methods to attract additional entry level and seasonal part-time employees which included reaching out to area high schools and colleges and advertising on new websites. • Introduced changes to the District’s Wellness Incentive program, changing to a wellness results driven program.

Other

• Continued to monitor the Patient Protection and Affordable Care Act (PPACA) and Illinois public policy, including the minimum wage legislation to assess their impact on the District. • Reviewed and standardized daily cash processing policies at all facilities and performed additional random cash and inventory audits throughout the year.

2018 Work Plan

Vision 2020 Strategic Themes

Exceptional and Consistent Guest Experience

• In conjunction with the Marketing Department, optimize staffing structure to provide exceptional customer service. • In conjunction with the Information Technology, Recreation, and Enterprise Services Departments, improve online access to rental and membership registration options.

Sustainable Revenue Strategies and Funding Options

• Continue to analyze program indirect costs and monitor allocation percentages used in assigning indirect costs to programs and services for accuracy and to report on program cost recovery to the targeted goals.

Employee Growth and Development

• Implement full-time wage scale and part-time hourly rates developed with recommendations from 2017 Compensation Study. • Establish District-wide training plan for all levels of staff. • Continue to explore ways to expand benefits offered to part-time employees. • Continue to expand recruiting efforts to maximize staff hiring.

Other

• Implement new financial reporting and payroll software which will incorporate purchasing, budgeting, accounts payable, payroll, and ledger reporting into one automated system and train staff on the new system.

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• Implement new Human Resource management software which will improve tracking of employee training and certification, and management of critical employee information. • Review Payment Card Industry (PCI) compliance guidelines in conjunction with the District’s registration policies and procedures and provide additional staff training opportunities on PCI compliance. • Improve Time and Attendance policies, including auditing each Department to ensure that the timekeeping approval and record keeping process meets Federal and State guidelines. • Continue to monitor PPACA and Illinois public policy, including minimum wage legislation to assess their effect on the District.

2018 Budget Highlights

The Finance and Human Resources function budget is increasing by 3.0% ($35,422) as compared to the 2017 Budget due primarily to increases in Wages by 8.1% ($34,747) and Contractual Services by 0.3% ($2,325) and is partially offset by a decrease in Supplies by 11.5% ($1,650).

Wages are increasing by 8.1% ($34,747) primarily due to turnover in the department resulting in the consolidation of the Lead Accounting Clerk position in the Finance and HR Department with the Financial Operations Supervisor position from the Enterprises Services department. Responsibilities from both jobs were combined as was recommended by the 2014-15 Staffing Study, resulting in the elimination of the Lead Accounting Clerk position and the redefined Financial Operations Supervisor position reporting to the Division Manager of Finance. This change reduced full-time salaries in the Enterprise Services function by $50,656 while increasing salaries in Finance and HR by $21,787. The additional variance is primarily related to budgeted merit increases combined with the turnover of an additional full-time accounting clerk.

Contractual Services are increasing 0.3% ($2,325) primarily due to a 35% ($25,835) increase in health insurance expenses due to employee turnover resulting in changes in insurance elections. IMRF and FICA are also increasing 7% ($5,746) due to increased wages in the department. This is combined with a 2% ($5,541) increase for PDRMA insurance contributions and a 17% ($3,070) increase in occupational health expenses related to pre-employment testing due to fee increases. The increases were partially offset by a 19% decrease for budgeted credit card and banking finance fees after experiencing a 32% decrease in average actual fees due to the conversion from the Class registration system to Vermont System’s RecTrac registration system.

Supplies expenses are decreasing 11.5% ($1,650) as the 2017 budget included additional funds to purchase Europay, MasterCard, and Visa (EMV) compliant credit card equipment to meet industry standards.

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Future Outlook

The Future Outlook of the Finance and Human Resources (HR) function is to improve and develop tools for departments to use in managing and improving operational efficiency. Included in the work plan is the continued development of cost recovery procedures, implementing new financial, HR management, and payroll software and improving time and attendance procedures. Finance and HR staff will continue to monitor the implications of the Federal Patient Protection and Affordable Care Act (PPACA) and Illinois legislative policies and their potential financial impact on the District.

Expenditures by Object: Finance and Human Resources Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 411,542 418,117 431,233 465,980 34,747 8.1% Contractual Services 693,459 650,582 729,507 731,832 2,325 0.3% Repairs 0 0 0 0 - 0.0% Supplies 4,899 7,228 14,350 12,700 (1,650) -11.5% Total 1,109,900 1,075,927 1,175,090 1,210,512 35,422 3.0%

Performance Measures: Finance and Human Resources 2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Percentage of Employees Receiving HR and Safety Training within 30 Days of Hire/Rehire 94% 89% 98% 9% 10.1% Percentage of Full-time Employees Qualifying for Wellness Premium Incentive Program 88% 95% 90% -5% -5.3%

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Mission To provide a secure, INFORMATION TECHNOLOGY (IT) productive, and progressive Description information systems environment to The Information Technology (IT) function purchases, supports and maintains the internal and external District’s hardware devices, software applications, wide area network (WAN) customers; to provide connections, local area networks (LAN), telecommunication systems and security creative and informed camera systems. long-term planning for the District to ensure 3 an adaptable and 2017 Accomplishments resilient environment for the future; and to 2013-17 Strategic Plan Themes enhance internal and external customers’ Customer Centered experience through technology and user- • Improved Webtrac website to indicate program availability and identify partner oriented service affiliated programs.

Funding Sources • Upgraded web server hosting site to improve performance for the District, Courts Plus, Sugar Creek Golf Course, and Wilder Mansion websites. Expenses for this function are reported • Deployed additional wireless access points at Wagner Community Center and in an Internal Service Courts Plus to improve guest access connectivity and streaming connectivity Fund and are for programs/classes. reimbursed (charged back) by the • Continued to implement the recommendations in the 2014-15 Staffing Study, operating funds using including completing an evaluation of the responsibilities and work plan of the District information GIS Specialist after a staff resignation and converting the position to an technology services Information Technology help-desk position.

Improvement through Collaboration and Innovation Full-time equivalent staff • Reduced and consolidated three servers from Courts Plus into the primary

SAN (storage area network) infrastructure. • Deployed Ransomware protection for all District devices. • Implemented SSL (secure sockets layer) encrypted security on all District 4.3 websites. • Working with the Finance and Human Resources Department, implemented PCI (Payment Card Industry) compliant credit card devices and software solution providing secure encryption of all financial transactions. • Deployed timeclocks at Wilder Mansion, the outdoor pools and Sugar Creek Golf Course improving employee efficiency. • Updated 3-year Information Technology Strategic Plan with a cross departmental committee.

3The Accomplishments section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets. 131 2018 BUDGET: EXPENDITURES BY FUNCTION

• Researched, with Administration, dashboard software applications that will display key indicators of organizational performance. • Implemented door access system improving security to District assets. • Led the implementation of the maintenance work order system for use in Enterprise Services and Park and Facilities Departments, allowing for improved tracking of facility issues, staff scheduling needs, District assets and preventive maintenance scheduling.

Other

• Completed Wide Area Network (WAN) and Local Area Network (LAN) infrastructure audits. • Updated the IT Disaster Recovery Plan. • Updated District disaster recovery hardware for local and disaster recovery backups. • Implemented internet phishing testing and training for internal staff. • Renegotiated various contracts saving the District approximately $30,000 annually, including Sharp printer, Comcast EVPL, ATT Centrex circuits and Global Comm VOIP network. • Renegotiated internet service provider contracts for District sites, improving performance while reducing costs. • Implemented Information Technology Department structural changes to improve the efficiency and effectiveness of information technology projects and software and hardware implementations. • Created registration FAQ pages to assist the community and staff. • Implemented “RecTrac How To” ComChannel page for internal staff. • Switched alarm and burglar communication to wireless radio transmitters reducing overall cost for Sugar Creek Golf Course. • Completed GIS mapping of District salt, plow and sweep areas.

2018 Work Plan4

Vision 2020 Strategic Themes

Exceptional and Consistent Guest Experience

• Implement mobile Webtrac to allow for simplified mobile device registration. • Implement online rental reservation options for customer with the ability to see facility space availability.

Sustainable Revenue Strategies and Funding Options

• Audit and consolidate software programs and use across the District.

4The Work Plan section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets.

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Employee Growth and Development

• Create an information technology training program that meets current and future needs of the District (Windows 10, PCI compliance, RecTrac).

Other

• Working with the Finance and Human Resources Department, implement financial software to allow for budget analysis and cost accountability. • Working with the Administration staff, implement software to improve visibility and communication with the community and staff (dashboarding, BoardDocs). • Implement document management software to improve document storage and retrieval. • Implement 2018-2021 Information Technology Strategic Plan through the review and improvement of training, process automation, customer service, reporting, collaboration, and productivity solutions. • Upgrade and implement a common security camera solution across the District. • Image and deploy new PC devices for staff across the District.

2018 Budget Highlights

The Information Technology (IT) function budget is increasing by 13.8% ($91,930) overall as compared to the 2017 Budget. Wages are increasing by 28.9% ($72,310) due to the reorganization of staffing in the IT Department. In 2017, the Recreation Technical Support Specialist was changed to the Software Systems Analyst and the position was moved from the Recreation Department to the IT Department. The position was also modified to include additional IT department responsibilities. In addition, the GIS Specialist position was eliminated and replaced with an IT Help Desk position which addressed a recommendation in the 2014-15 Staffing Study.

Contractual Services are expected to increase by 5.8% ($17,234) primarily due to shifting oversight of the Sharp printer contract from the Administration function budget to the IT budget.

As compared to the 2017 Budget, Supplies are increasing by 2% ($2,386) due to additional software licensing for the new work order maintenance system.

Future Outlook

The Future Outlook of the IT function will be impacted by the following trends: Technology to Improve Productivity and Access to Information • Data analytics will increase as the significant amount of unstructured data in an organization entices the “why” it’s happening, while the structuring of data identifies the “what” is happening, allowing the District to purposefully plan and grow (e.g., financial system, dashboarding etc.). • Productivity increases through the use of cloud based tools, i.e., Office 365, SharePoint, etc. providing opportunities for collaboration and improved communication, while leveraging technology, between departments and the community. Mobility and Public Access

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• Mobile access will continue to expand, with increased demand for efficient communication and enriched technical experiences. • Continue review of Wi-Fi use throughout the infrastructure to provide more impactful programs to the community. Security • Security and privacy continue to be a concern for data accessed internally and externally, regarding use permissions, protection and legal rights.

Based on these future trends, continuous staff training regarding hardware and software knowledge for security, policies and productivity will continue to be a priority. Additionally, IT maintenance costs will continue to increase as the District becomes more dependent upon technology through the use of cloud-based systems for increased productivity.

Expenditures by Object: Information Technology Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 254,701 174,185 249,951 322,261 72,310 28.9% Contractual Services 264,422 240,528 298,972 316,206 17,234 5.8% Supplies 85,283 49,136 119,434 121,820 2,386 2.0% Total 604,406 463,849 668,357 760,287 91,930 13.8%

Performance Measures: Information Technology 2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Website Visits (epd.org) 237,213 241,352 243,766 2,414 1.0% Website Visits (courts-plus.com) 140,232 131,165 119,272 -11,893 -9.1% Website Visits (wildermansion.org) 33,076 31,619 31,158 -461 -1.5% Website Visits (sugarcreekgolfcourse.org) 35,884 36,529 36,765 236 0.6% Website Unique Hosts* (epd.org) 124,889 129,824 136,231 6,407 4.9% Website Unique Hosts* (courts-plus.com) 85,020 84,406 83,888 -518 -0.6% Website Unique Hosts* (wildermansion.org) 24,509 23,571 23,350 -221 -0.9% Website Unique Hosts* (sugarcreekgolfcourse.org) 22,822 24,173 24,500 327 1.4% *A single IP address could "host" multiple computers behind a router. The amount of unique hosts is typically higher, but there is no method to track this data. 134 2018 BUDGET: EXPENDITURES BY FUNCTION

Mission PARKS To plan, develop and provide Description outdoor spaces

consisting of open The Parks Department handles the day-to-day maintenance and care of the parks space, natural and grounds, including mowing, tree care, trash removal, turf care, snow removal, areas and developed park trail maintenance, athletic field maintenance, etc. coordinates the planting and areas that are a upkeep of all flower beds and landscape displays and cares for the Elmhurst Great model of quality Western Prairie and the Wilder Park Conservatory that hosts a variety of shows and cleanliness, and museum displays throughout the year, and manages the Park Ambassador while proactively program. The Department also oversees the District’s fleet of vehicles and and consistently equipment, including the procurement of new equipment and replacement of fleet meeting the needs vehicles and coordinates repairs with the City of Elmhurst mechanics and the repair of the Elmhurst and replacement of small engine equipment. community Park Planning plans and designs new facilities and parks and coordinates the Funding Sources purchase of replacement site amenities, playground renovations, utility work, Taxes, donations, accessibility improvements, new tree planting and the District’s tree memorial and user fees and brick paver programs. interest income 3 2017 Accomplishments Revenues and expenses in… 2013-17 Strategic Plan Themes General (includes IMRF and FICA Customer Centered Departments), Recreation • With the Marketing Department, implemented innovative methods for public (includes the input process for park development projects including online surveys and Museum Facebook postings. Department) and Enterprise • Coordinated and hosted four (4) Eagle Scout projects, ten (10) field trips, and Services Funds three (3) Conservatory tours.

• Relocated the Garden Plots from Golden Meadows Park to Marjorie Davis Park, including new plumbing, signage, stormwater management, grading, and soil Full-time amendments resulting in the creation of fifty three (53) new garden plots equivalent staff ($182,700).

21.2 Fiscal Agility

• Completed the scheduled replacement of two (2) 72” Zero-turn mowers and one (1) 61” Stander-mower ($28,850). • Continued ash removals from all parks through both in-house and contractual services ($27,000).

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• Completed the replacement of Plunkett Park playground equipment and surface to meet ADA guidelines, created accessible route to picnic area, upgraded walkways, added a drinking fountain and corrected drainage issues in playground ($387,597). • Restored and renovated six (6) tennis courts at Berens Park in need of maintenance, including striping and sealing ($129,538). • Completed annual contractual maintenance of paved surfaces including repaving the York Commons parking lot and seal coating projects at East End Park parking lots and Golden Meadows and Washington parks parking lots and paths, The Abbey east parking lot, and the Crestview Park parking lot ($160,205). • Completed the inventory, grinding, and restoration of existing stumps throughout the District ($4,100). • Replaced backstops and player benches at Conrad Fischer Park on field #2 and #3 and 330 feet of chain- link fencing at Marjorie Davis Park ($56,048). • Completed ADA improvements to Eldridge Park walkways, public walks, and water fountain as identified in the ADA transition plan ($43,658). • Completed the installation of a new irrigation system for the Wilder Park Formal Gardens ($5,350).

2018 Work Plan4

Vision 2020 Strategic Themes Meet Community Needs for Parks, Open Space, and Outdoor Amenities

• Complete the replacement of Conrad Fischer Park playground and safety surface and renovate tennis courts, repave asphalt paths, replace drinking fountain and replace concrete pad ($404,000). • Complete the replacement of two synthetic turf fields in Berens Park. Per the current agreement with Elmhurst College, the College will be responsible for a quarter of the cost of this project ($935,000). • Complete the installation of the Salt Creek Park batting cages in current bullpen area, which will be funded by both Elmhurst College and Elmhurst Youth Baseball ($30,000). • Complete the scheduled replacement of two new Facilities Department vehicles and one Parks Department tractor ($152,000). • Complete annual contractual maintenance of paved surfaces including repaving Berens Park West parking lot and parking stalls along Oak Lawn Avenue ($300,000). • Hire and complete Phase 1 engineering to design and provide cost estimates for re-grading and restoring of the Berens Park sled hill slope and replacing fencing ($35,000). • Replace Eldridge West playground safety surfacing damaged by tree roots ($30,000).

2018 Budget Highlights

As compared to the 2017 Budget, the 2018 Parks function budget is increasing by 18.1% ($270,925). The increase is primarily due to the transfer of the Athletic Field maintenance operations and the Park Ambassador program to the Parks Department from the Facilities Department as recommended in the 2014-15 Staffing Study. Therefore, the increase in expenses in the Parks function is offset by a decrease from the Facilities function budget. In addition, new efficiencies, upgraded equipment, and maintenance planning has allowed

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the Department to continue to improve standards for park maintenance without greatly increasing overall expenses. The Parks Department is committed to delivering the highest quality of services through an efficient operating budget.

Wages are increasing overall by 21.1% ($152,031) as compared to the 2017 budget. The increases are primarily due to staffing changes to allocate additional resources towards implementation of the Vision 2020 Plan and to address 2014-15 Staffing Study recommendations and as a result of wage adjustments related to the 2017 Compensation Study recommendations. Specific changes are highlighted below:

• Shifted Park Ambassador program and Athletic Field maintenance staff from the Facilities Department to the Parks Department (three full-time positions) for a total impact of $128,610 (2014-15 Staffing Study recommendation). • Increased seasonal staff wages by 16% ($16,500) to account for labor hours for Park Ambassador and Athletic Field Maintenance duties (2014-15 Staffing Study recommendation). • Promoted the position of Division Manager of Parks to Director of Parks increasing budgeted expenses approximately $18,528 (Vision 2020 Plan Implementation). • Adjusted salaries for full-time Parks Specialist I and Parks Specialist II positions to meet the minimum recommended salary for their job classification level, resulting in a budget increase of $34,755 (2017 Compensation Study recommendation). Wages are also increasing by $29,146 due to performance based merit increases. These increases are offset by the following decreases in wages: • Changed the Director of Parks and Facilities position to the Director of Facilities to allow the position more time to focus on facility operations and pursue major facility development opportunities proposed in the Vision 2020 Plan, decreasing budgeted expenses in the Parks function by approximately $48,214 (Vision 2020 Plan Implementation). • Decreased the allocation for the Park Planner position in the Parks function by approximately $27,294 (shifted to the Facilities Function budget) (Vision 2020 Plan Implementation).

Contractual Services is increasing by 11.8% ($57,333) as compared to the 2017 Budget. This is primarily due to changes in department staffing affecting health care ($21,761), IMRF ($12,057), and FICA ($11,129) expenses which are all increasing by 17%. In addition, Contractual Services is increasing by 16% ($10,300) mainly due to the transition of irrigation system maintenance from Facilities Department to the Parks Department, and additional funds budgeted for contractual top dressing and turf maintenance at Butterfield and Salt Creek parks. Parks Contractual Services are essential for operational maintenance tasks that require specialized skills and equipment or significant labor hours beyond the time necessary for required daily maintenance tasks.

Supplies are increasing by 22% ($60,961) as compared to the 2017 Budget. The increases are primarily due to the shifting of Athletic Field Advisory Committee (AFAC) supplies from the Facilities Department to the Parks Department ($39,425). Budgeted supply purchases include herbicide applications for infield weeds, replacing damaged windscreens, and infield repairs. Compared to the 2017 Budget, Ground, Planning Project, and Prairie Renovation supplies are increasing by $20,213 for additional native plantings to be used in the renovation of eleven sign beds throughout the District and in “No Mow” areas at the Ben Allison Park sled hill and in Eldridge Park.

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Future Outlook The Future Outlook of the Parks function budget continues to be driven by the rising cost of materials, vehicle and equipment parts, and plants. Seasonal staff levels and the potential for extreme weather conditions also impact the operating budget for the Parks Department. In addition to our scheduled maintenance and planned contractual services, the Vision 2020 park assessments will drive special projects within the parks.

Parks staff will continue to explore opportunities to reduce fuel consumption and promote sustainability in all areas of operations. The Parks Department is prepared and focused on delivering the highest quality of services through a professional and dedicated staff of Park Specialists.

Expenditures by Object: Parks Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 657,728 685,520 720,848 872,879 152,031 21.1% Contractual Services 415,819 449,575 486,854 544,187 57,333 11.8% Repairs 8,382 15,752 13,800 14,400 600 4.3% Supplies 296,146 277,302 277,462 338,423 60,961 22.0% Total 1,378,075 1,428,148 1,498,964 1,769,889 270,925 18.1%

Performance Measures: Parks

2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Total Fuel Consumption (Gallons) 24,645 23,250 24,000 750 3.2% Fuel Expenses $45,441 $45,800 $61,000 $15,200 33.2% Net Loss/Gain of Trees Ratio 6.40 to 0.89 2.25 to 1.00 3.50 to 1.10 1.25 to 0.00 N/A

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Mission FACILITIES To provide a balanced variety Description of quality

experiences, The Facilities Department works closely with the Recreation Department to coordinate services and facilities that the scheduling and rental of parks, picnic areas, etc., and with all departments to proactively and facilitate, support and implement work plans. The Department works with the Marketing consistently and Communications Department to facilitate large scale special events as well as meet the needs outside and affiliate groups as a liaison for special use permits and large scale events. of the Elmhurst The Department also handles the care and maintenance of the District’s site amenities, community playgrounds and custodial services for the District’s outdoor restrooms and buildings. The Department is responsible for the care, maintenance, scheduling and rental of the Funding District’s two outdoor swimming pools and The Hub (including mini golf, batting cages Sources and spray park); oversees, plans, implements and executes operations and logistics in Property taxes, the areas of rentals, concessions, vending and special events; provides support through user fees, the electrical, plumbing and carpentry trades; and coordinates facility cleaning, portable rentals, toilets, etc. The Department recommends and manages planning and logistics of capital merchandise improvement projects for the District’s properties, playgrounds and hardscapes. sales, passes and interest 2017 Accomplishments3 income 2013-17 Strategic Plan Themes Revenues and expenses in… Customer Centered General • Collaborated with the City of Elmhurst and the Elmhurst Public Library to collect (includes IMRF 2,382 pounds of lights for the annual Holiday Lights Recycling Program. and FICA Departments), • Based on the feedback in the 2016 end-of-season aquatics survey, increased Recreation and swim opportunities by adding an adult swim on Sundays from 11:00 a.m. to 12:00 Enterprise p.m., expanding Smalley Pool hours (changing the opening time on Sunday to Services Funds 11:00 a.m. from 12:00 p.m.), and increasing late night swims at East End Pool resulting in increased pool hours twice a month (open until 10:00 p.m. versus 8:00 p.m.).

Full-time Fiscal Agility equivalent staff • Removed existing windows at the Wagner Community Center that serve the classrooms and offices and replaced with anodized aluminum frame fixed commercial exterior windows complete with hardware and related components 41 ($197,277). • Removed existing carpet/flooring in Multi-purpose Room A at the Wagner Community Center, abated sub-flooring and mastic ($9,830) and installed a durable, high performance multi-use sport floor system ($34,234). • At the Administration Office, completed masonry tuckpointing, caulked window perimeters, replaced window/door lintels as needed, replaced metal coping cap on the upper roof and repaired loose or

3 The Accomplishments section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets. 139 2018 BUDGET: EXPENDITURES BY FUNCTION

deteriorated flashings to improve the integrity of the structural elements of the building and guard against further deficiencies ($53,990). • Replaced uneven brick pavers at the Depot with a walkway/path that is a continuous smooth surface and ADA accessible ($26,800). • Removed existing poured-in-place spray ground surfacing at The Hub that was delaminating resulting in gaps at the seams and uneven coverage, which posed trip hazards and replaced with new, non-slip permeable surface that is chlorine resistant and UV light stable ($38,000). • Repaired inlaid tile lane lines ($3,000) and re-strapped 146 chaise lounge deck chairs ($10,078) at East End Pool. • Resurfaced the entire interior ride surface of the fiberglass open flume water slide ($15,354), repainted the water features ($1,250), replaced a 10 inch pipe on the main pump ($705), and installed a new 100 gallon water heater ($3,800) at Smalley Pool. • Installed non-skid vinyl dance flooring in the dance studios at the Wagner Community Center to provide a slip-resistant cushioned impact surface for dancers as well as sound absorbing qualities for the rooms ($16,200).

2018 Work Plan4

Vision 2020 Strategic Themes

Meet Community Needs for Parks, Open Space, and Outdoor Amenities

• Complete renovations to Safety Town buildings and grounds and update signage to reflect partnership sponsors of the buildings and amenities ($55,000). • Improve and rehabilitate the grounds around the Bicentennial fountain to provide a pleasant public space for users of the area, including installation of ADA compliance seating and re-pointing the brick of the fountain to help prevent water damage and provide stability to the masonry wall ($35,000).

Meet Community Needs for New and Existing Indoor Recreation Space

• Engage engineering services to assess existing worn HVAC equipment at the Wagner Community Center (4 roof top units – 3 above offices and 1 above Sunbeams and Rainbows classroom) and recommend upgrades with modern energy efficient units ($13,500). • Complete restoration of the Wagner Community Center roof by reusing the existing roof system (gravel structure/BUR roof), which will preserve the integrity of the interior finishes, minimize removal and disposal costs, protect the existing investment, and is environmentally friendly ($275,000).

2018 Budget Highlights

In the proposed 2018 Budget, Facilities function expenses are increasing overall by 2.7% ($68,939) as compared to the 2017 Budget.

Wages are increasing overall by 4.4% ($59,393) as compared to the 2017 budget. The increases are primarily due to staffing changes to allocate additional resources towards implementation of the Vision 2020 Plan and

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as a result of wage adjustments related to the 2017 Compensation Study recommendations. Specific changes are highlighted below:

• Added the new full-time position of Division Manager of Aquatics and The Hub which increased the budget by $75,000 (Vision 2020 Plan Implementation). • Changed the position of Director of Parks and Facilities to the Director of Facilities to allow the position more time to focus on facility operations and pursue major facility development opportunities proposed in the Vision 2020 Plan, increasing budgeted expenses in the Facilities function by shifting approximately $48,214 from the Parks function (Vision 2020 Plan Implementation). • Increased allocations for Parks Planner position wages in the Facilities function by shifting approximately $27,294 from the Parks function. (Vision 2020 Plan Implementation). • Adjusted the salaries for full-time Facility Specialist I and Facility Specialist II positions to meet the minimum recommended salary for their job classification level, resulting in a budget increase of $19,405 (2017 Compensation Study Recommendations).

Wages also increased due to performance based merit increases and to increase the starting pay for part- time aquatics staff to improve recruitment and retention (total impact of $18,090). These increases are offset by the shift of Athletic Field maintenance staff from the Facilities Department to the Parks Department (three full-time positions), resulting in a decrease of $128,610 and decreased part-time labor of $11,856.

Contractual Services is increasing overall by 4.2%, ($35,404) as compared to the 2017 budget primarily due to a 7% ($13,500) increase in budgeted electric expenses and a 53% ($7,024) increase in refuse removal expenses. In addition, as a result of staffing changes, health care expenses are increasing approximately 3.8% ($6,412), IMRF increase of 5.7% ($5,370) and FICA increase of 4.4% ($4,544).

Repairs are decreasing by 6.6% ($6,100) as compared to the 2017 budget with the completion of a number of one-time higher cost facility improvements such as building repairs, which are 26% ($14,420) lower offset by plumbing repairs which are 29% ($8,100) higher due to budgeted fountain replacement. The 2018 improvement expenses include:

• Repainting the Smalley Pool water slide tower to eliminate peeling and to improve aesthetics; diamond brite patching to ensure a safe, durable, and slip resistant surface that is comfortable to bather’s feet; • Laid in tile line repairs at East End Pool to ensure water tight integrity and establish a permanent visual and decorative underwater element; • Install new impellers at Smalley Pool and spray ground to give feature and circulation pumps the ability to achieve proper flow and efficiently move water through the filtration systems; • Add sound absorbing panels to the walls and ceiling in The Hub classroom to improve sound clarity, reduce echo and reverberation and improve the user groups experience along with applying UV tint to the windows to increase air conditioning efficiency, and reduce heat and distracting glare; • Install new carpet in the Wagner Community Center Sunbeams and Rainbows preschool room to brighten aesthetics in the space, reduce noise, and contribute to a warm, friendly environment for students and teachers.

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As compared to the 2018 Budget, Supplies are decreasing by 7.1% ($19,758) primarily due to the shift in athletic field maintenance supply expenses to the Parks function budget. Despite the overall decrease, Equipment & Furniture is increasing by ($13,670) for purchases of new equipment to replace obsolete equipment and improve operational efficiencies and the customer experience, including:

• Purchasing walk behind equipment (sweeper and compact scrubber) to clean the gymnastics center carpet and floor in Multipurpose Room A at the Wagner Community Center; • Installing a stackable washer/dryer combo with the intent of phasing out paper towels and moving to reusable microfiber towels at the Wagner Community Center; • Replacing the funbrella canvases at The Hub spray park and concessions umbrellas at Smalley and East End pools to ensure the comfort and safety of all pool patrons; • Replacing the outdated and obsolete Strantrol units at The Hub Spray Park and Smalley Pool with a Becs chemical controllers to ensure continuous water disinfection levels that meet aquatic industry standards.

Future Outlook

The Future Outlook of the Facilities Department budget will be guided by implementing the results of the Vision 2020 Comprehensive and Strategic Plan to meet the needs and expectations of the community. The Facilities Department is poised for the change in department structure as it will continue to work with all departments to identify priorities, develop and implement proposals for events and services, and align the efficient use of facilities based on the growth or divestiture of programming.

Expenditures by Object: Facilities Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 1,274,553 1,253,512 1,344,495 1,403,888 59,393 4.4% Contractual Services 840,304 829,308 846,019 881,423 35,404 4.2% Repairs 36,478 68,631 92,550 86,450 (6,100) -6.6% Supplies 217,331 231,157 277,965 258,207 (19,758) -7.1% Total 2,368,666 2,382,609 2,561,029 2,629,968 68,939 2.7%

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Performance Measures: Facilities 2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Pool Passes Sold 7,723 6,911 7,500 589 8.5% Number of Hub Rentals* 168 150 175 25 16.7% Number of Abbey Rentals 19 26 22 (4) -15.4% *Hub and Abbey rentals do not include District meetings/trainings/classes (CPR, Employee Picnic, or programs at The Abbey)

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RECREATION Mission Description To enhance lives by providing The Recreation Department is responsible for providing programming for all ages in opportunities to the following categories: Active Adults, Trips, Athletics, Gymnastics, Rec Station, Day play, perform and participate Camps, Early Childhood, Performing Arts, Visual Arts, General Interest and Environmental. The Department also provides inclusion services for individuals with special needs and oversees the program registration operation, which has its primary Funding Sources site at the Wagner Community Center and a satellite location for seniors at The Abbey. Taxes, user fees, scholarships, grants, advertising 3 and interest income 2017 Accomplishments

2013-17 Strategic Plan Themes Revenues and expenses in… Customer Centered IMRF and FICA • Continued to work with School District 205 to accommodate the demand for Rec Departments and Station at each school site and secured use of additional space at Lincoln School Recreation for Rec Station after school use. (includes the Special Recreation • Established a new partnership arrangement with the Lakeview Nature Center, Association and modeled after the Elmhurst Art Museum arrangement, to better serve Museum environmental program participants. Departments) Funds • Established a new contractual agreement with the Edge Ice Arena to better serve

ice skating/hockey program participants.

• Partnered with local area park districts to offer an additional senior special event at the Diplomat West in Elmhurst. Full-time • Partnered with Lexington Square of Elmhurst to offer an additional senior special equivalent staff event for Abbey members. • Worked with School District 205 music staff to increase the number of participants 57 in Elmhurst Summer Community Band. • Established a cooperative with the School District 205 Transition Program (for students with developmental disabilities) hiring students/graduates from this program to work at the Rec Station before/after school program. • Established a cooperative with Elmhurst College, hiring students from the Elmhurst Learning and Success Academy (for students with developmental disabilities) to work at the Rec Station before/after school program. • Continue to update Sunbeams and Rainbows learning environment to be more in line with Illinois Dept. of Children and Family Services (DCFS) standards.

3 The Accomplishment sections may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets. 144 2018 BUDGET: EXPENDITURES BY FUNCTION

• Expanded Sunbeams and Rainbows curriculum using the Early Childhood Creative Curriculum (Pet Study) for school year 2016-17. • Collaboratively planned Sunbeams and Rainbows fall 2017 curriculum guided by the Creative Curriculum for Preschool and the Illinois Early Learning & Development Standards. • Implemented use of Homeroom App for Sunbeams and Rainbows participants. • Purchased and implemented standardized youth sports curriculum. • Developed Music Book Bag welcome package for summer and fall music students to help participants bring their music books to lessons. • Made changes to recital dance course curriculums and offered recital opportunities to younger students (Pre-Ballet (ages 2 – 3) and Combo 1 (ages 3.5 – 5)). • Implemented use of Remind 101 App for Impact Dance Company and dance recital participants. • Introduced ukuleles to group voice classes and developed new fall offering with ukuleles (Sing and Strum). • Joined and competed in a new league (The Impact Dance Company), IRCA (Illinois Recreational Cheer Association) Dance Division. • Continued to adjust gymnastics program schedules to improve balanced offerings to all user groups (early childhood, youth and competitive program offerings). • Expanded programming to fill gaps in the dance studio winter/spring schedule including new Snowy Day Princess Dance Camp, Spring Break Dance Camp, Winter Dance Combo and Spring Dance Combo. • Offered fall 2017 classes that expand dance programming into Multipurpose Room D and Multipurpose Room A at the Wagner Community Center, including new recital dance offerings for younger participants and new adult dance classes. • Recruited American Music Institute as a new Independent Contractor and successfully offered Guitar 101 and Beginning Violin group classes. • Continued expansion of programming/meeting hours at The Abbey to accommodate appropriate programming and expand program offerings in Multipurpose Room A at the Wagner Community Center. • Worked with Facilities Department to install a gym floor in Multipurpose Room A and a new floor in the Dance Studios at the Wagner Community Center. • Expanded early childhood and parent/child course offerings. • Launched new active adult/senior enrichment programs in the areas of visual arts and wellness. • In response to requests for more early childhood dance programming, created Itty Bitty Ballerinas for ages 2 – 3. • Offered a new special event for Mom Son Dance to compliment the Daddy Daughter Dance offering.

Fiscal Agility

• Increased the number of dancers participating in Dance Troupes from 22 to 42 participants. • Established cost recovery benchmarks for program areas. • Hired a part time coordinator to assist with Early Childhood and Preschool programming.

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• Hired a part-time coordinator position in Dance to improve participant engagement and enhance program experience.

Improvement through Collaboration and Innovation

• Cross-trained registration positions at The Abbey and Wagner Community Center. • Streamlined hiring/training onboard checklist for gymnastic staff. • Introduced the Recreation Department Inclusion Guide to department staff. • Completed external training for the early childhood staff on the Early Childhood Environmental Rating Scales. • Implemented Sunbeams and Rainbows site specific emails to improve communication between preschool families and program instructors. • Implemented program area emails (dance/gymnastics/Rec Station/athletics) to improve communication between participants and program directors/instructors/coaches. • Created Preschool Assistant Instructor position. • Worked with IT to secure laptops for eight Elmhurst elementary schools to enhance Rec Station communication with families. • Attended (Program Manager for Active Adults and Trips) NANASP/NCOA 2017 Joint Conference (National Association of Nutrition and Aging Services Programs/National Institute of Senior Centers). • Attended teacher workshops at Wilmette Stars of Dance and participated in Master Classes taught by Giordano Dance Chicago (dance instructors).

2018 Work Plan

Vision 2020 Strategic Themes

Innovative Programming to Meet Community Needs

• Provide gymnastics opportunities for local organizations supporting individuals with disabilities. • Schedule additional evening art classes for adults at The Abbey. • Schedule additional wellness and enrichment programs for adults at The Abbey. • Establish adult social/fitness dance programs. • Expand early childhood enrichment offerings. • Develop Sunbeams and Rainbows science and nature experiences. • Offer new extended travel trips for adults/seniors. • Host District dance competition. • Offer a new winter Community Band program.

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Exceptional and Consistent Guest Experience

• Reorganize the registration function within the Recreation Department to improve efficiency and effectiveness addressing process improvements, staffing, job descriptions, and work environment. • Cross-train athletic staff across youth/adult programs. • Develop a music coordinator position to foster student engagement (music challenges, etc.). • Evaluate Sunbeams and Rainbows classrooms using the Early Childhood Environmental Rating Scales.

Sustainable Revenue Strategies and Funding Options

• Divest out of programs not meeting cost recovery models in athletics (fencing, karate). • Restructure Rec Station and Funseekers Day Camp pricing to ensure a sustainable cost recovery model with a focus on the “greatest good for the greatest number.”

Employee Growth and Development

• Introduce the Recreation Department Inclusion Guide to all programming staff/departments. • Expand part-time early childhood/preschool external training opportunities. • Begin training dance instructors toward certification of Giordano Method of Dance. • Invest in safety and risk management training for year-round gymnastics instructors through USAG (United States of America Gymnastics).

2018 Budget Highlights

As compared to the 2017 Budget, the Recreation function budget is increasing by 1.1% ($37,495) overall.

Total Wages as compared to the 2017 Budget are increasing 2.2% ($48,069) due to an increase in part-time wages by 3% ($57,028) and offset by full-time wages decreasing by 0.1% ($8,959). The decrease in full-time salaries is primarily resulting from the reorganization of staff. In 2017, the Recreation Technical Support Specialist was renamed Software Systems Analyst and the position was moved from the Recreation Department function to the IT Department decreasing Recreation function expenses by $62,678. Offsetting this decrease is the proposed wage increase of approximately $18,000 for the promotion of one full-time position. In addition, increases are budgeted in full-time salaries to reflect the 2017 Compensation Study minimum recommended salary for job classification levels (impact of approximately $19,969). Merit adjustments for full-time staff accounts for approximately $15,750 of increased wages.

Part-time wages are increasing primarily due to proposed increases to minimum hourly rate for some positions and due to proposed annual merit adjustments of approximately 2%. Increased part-time hours for registration, sports camp, gymnastics, music, and dance program part-time staff is also being budgeted to address increased demand for these programs.

Contractual Services are decreasing by 0.9% ($10,712) primarily due to a reduction for program expenses. Contractual services for Ice Skating lessons are decreasing by $5,783 as a new contractual agreement was negotiated with the Edge Ice Arena in Bensenville, offering lessons at a reduced rate compared to the Addison Ice Arena agreement. Expenses are also reduced for Karate ($3,240) Sports Kids ($7,122), and the Teen Ski Trip ($2,828) due to lower participation. This is combined with decreased ($10,000) expenses for environmental programs offered through the Lakeview Nature Center as Elmhurst participants will register 147 2018 BUDGET: EXPENDITURES BY FUNCTION

directly with the Oakbrook Terrace Park District based on the new intergovernmental agreement. This is partially offset by increased contractual service expenses for music and concert series programs ($6,897) and adult dance programs ($3,840) due to an anticipated increase in demand and for additional technology related programming, including Bricks 4 Kidz ($6,575). Supply expenses for the Recreation Function are increasing by 0.1% ($138) primarily due to increased program related expenses ($4,138) for healthier snack options for the after school program offset by reduced ($4,000) office equipment and furniture expenditures.

Future Outlook

The future outlook for the Recreation function budget will continue to be driven by the Vision 2020 Comprehensive Plan and Strategic Plan. More specifically, Recreation will play a role in developing strategies to increase participation or address participation demands in the following areas: • Determine approach to indoor sports facility as it relates to youth sports programming and adult sports leagues. • Determine future of Palmer Drive site/building as it relates to senior center operations and active adult programming (i.e., Adult Fitness and Adult Continuing Education). • Finalize future of small recreation and 225 Prospect buildings based on evaluation of preschool business model. • Determine future expansion of the Wagner Community Center, specifically as it relates to gymnasium and early childhood/preschool programming space (based on future of new indoor sports facility and small recreation buildings). • Determine future use of The Abbey (based in part on determining future use of Palmer Drive site).

Expenditures by Object: Recreation Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 1,850,948 1,910,268 2,159,901 2,207,970 48,069 2.2% Contractual Services 1,023,341 1,067,577 1,136,730 1,126,018 (10,712) -0.9% Repairs 7,007 0 0 0 - 0.0% Supplies 233,869 218,632 233,688 233,826 138 0.1% Total 3,122,172 3,196,477 3,530,319 3,567,814 37,495 1.1%

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Performance Measures: Recreation 2017 Projected 2018 Difference % Change Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Recreation Fund Program Cost Recovery 67.60% 60.70% 56.90% -3.8% -6.3% Gateway Participation 85 85 85 0 0.0% Recreation Financial Assistance $35,907 $33,240 $33,240 - 0.0% % of Online Registrations 41.0% 51.0% 51.0% 0.0% 0.0%

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Mission ENTERPRISE SERVICES To oversee the operations of the Enterprise Fund of the Description Park District (Courts Plus, Wilder Park Enterprise operations (Courts Plus, Wilder Mansion, rentals, and weddings) are weddings and Wilder funded by the customer and no tax dollars are used in the operational and capital Mansion) and to expenses of these areas (except for a portion of Wilder Mansion expenses). All identify, research, and operations are required to make a profit. when appropriate, develop business Member Services Division: To oversee the financial, membership and opportunities for the personnel facets of Enterprise Services, including balancing daily receipts; selling, District that will inputting, tracking and billing of memberships; program registration; implementing enhance the sales and retention strategies to maximize memberships; handling personnel; and profitability and services of current tracking revenue and expenses. and new business ventures, thus adding Facilities & Grounds Divisions: To plan, develop, manage and maintain the to the District’s cash operations of Enterprise Services. To provide safe, clean and aesthetically and investments pleasing facilities for the fulfillment of lifetime enjoyment.

Funding Sources Hospitality Division: To plan, implement and execute operations that generate revenue in the areas of rentals and weddings. To control costs to industry Membership, program standards and make the Department profitable. To develop and implement high fees, user fees, merchandise sales, customer service standards and employee training. rental, taxes and interest income Programming Division: To plan, develop, manage and maintain the operation of health, fitness and racquet sports programs, leagues, summer camps and Kids

Revenues and Plus. To provide innovative and safe health/fitness programs and equipment expenses in… guided by quality, customer service-focused staff. Enterprise Fund and 3 Museum Department 2017 Accomplishments

2013-17 Strategic Plan Themes

Customer Centered Full-time equivalent staff • Continued to work with organizations such as the Elmhurst Public Library and parenting groups to highlight the impact of Courts Plus on the Elmhurst community. 57 • Continued to work with McMaster-Carr Industrial Athlete program for workplace safety. • Offered programs to help collect non-perishable food items for United Community Concerns. • Provided safety programs for children, including anti-cyberbullying seminar for tweens in conjunction with the Elmhurst Police Department and Elmhurst Fire Department.

3The Accomplishments section may include capital projects or revenue that are not reflected in function expenses as revenue and capital, transfers and debt service expenses are omitted from all of the Function budgets. 150 2018 BUDGET: EXPENDITURES BY FUNCTION

• Continued partnership with Edward-Elmhurst Healthcare by hosting three free health seminars to Courts Plus members and exploring options with the Integrative Medicine Clinic of the hospital which included a sustainable gardening field trip and discussions of Courts Plus providing onsite classes. • Increased membership staff attendance at community events to engage with the community and increase interest in Courts Plus (e.g., new Fruitful Yield opening, Art in Wilder Park, People for Elmhurst Parks Golf Outing, District special events, Midwestern University Health Fair, Elmhurst College Health Fair and Dan Gibbons Turkey Trot). • Partnered with Brewpoint to offer coffee service at Courts Plus. • Worked with Elmhurst College’s women’s soccer team to provide the Courts Plus pool during non-rental times for post-workout recovery training. • Used In-Touch software and on-boarding appointments with personal trainers to continually connect with former and current members. • Worked with the Marketing and Communications Department to provide Courts Plus members with instructions on how to check their fitness center usage online. • Offered new parent/child classes (Sing/Dance Play, workshops and one day special events). • Introduced a Fitness Rig to the fitness floor to offer multiusers more options for functional exercises and to compete with like facilities. • Launched the Courts Plus Mobile App allowing members to check in, access the group exercise schedule, track and log workouts, set goals, earn rewards, find special offers and discounts on services and programs, participate in challenges, refer members, receive push notifications and cheer others on. • Hosted a Senior Health Fair in honor of National Senior Fitness Day, which included free use the club for seniors, information tables (e.g. The Alzheimer’s Association, DuPage Senior Citizens Council, Elmhurst Public Library, and Elmhurst Hospital), refreshments, and a ten dollar joining special for seniors (seventeen new senior members joined). • Partnered with Six Flags Great America to offer members 50% off of online tickets during the four day facility shutdown in August and seven dates during the September and October Fright Fest. • Offered a trip to the Shedd Aquarium to new and current senior members, led by our Membership Services Specialist and Personal Trainer/Shedd Aquarium volunteer to provide social engagement and connection to Courts Plus. • Reorganized the membership services sales and retention team to include a full-time Membership Services Specialist and two part-time member associates, rather than two full-time Membership Specialists simplifying the accountability structure of the team and providing a consistent experience for a greater number of new members. • Attended two Highland Solutions Customer Experience Workshops, which resulted in Membership Services staff interviewing ten new members, creating a map of the onboarding process, gaining valuable feedback and furthering connection with new members. • Offered free outdoor Yoga and Insanity classes to the community during the summer months. • Introduced STRONG by Zumba and BARRE classes to the Group Exercise class schedule. • Partnered with A.C.T. F.A.S.T. to offer women’s self-defense seminars at Courts Plus. • Provided online purchase option of the Courts Plus Young Adult Holiday membership and 30-Day membership. 151 2018 BUDGET: EXPENDITURES BY FUNCTION

• Converted Rockids classes to three weeks to offer more sessions and create a schedule that is not competitive with other programs.

Fiscal Agility

• Raised membership fees 10-17% to continue to offer the level of service provided. • Increased the value of the membership by offering additional free classes and a new fitness incentive program and introducing a Courts Plus Mobile App. • Replaced the two oldest Courts Plus HVAC units serving the upper level Kids Plus area, lower level Fit 4 Life and common hallways. By working with the MICPA US Cooperative Purchasing program staff was able to reduce the cost of the project from $69,500 to $51,780, saving $17,720. • Replaced the existing wooden flooring in the Wilder room at the Wilder Mansion, finishing the replacement of all the first floor flooring in Wilder Mansion (project total $17,992). • Completed the Courts Plus/Plunkett Park Parking Lot repairs to failing asphalt, curbs, concrete sidewalks and aprons ($33,235). • Completed replacement of fitness equipment ($113,000) by investing in a three-year lease agreement contract at a total price of $104,000 to replace fifteen treadmills and four steppers that were seven to nine years old. • Replaced the racquetball court lighting system originally installed in 1972 with new LED fixtures ($19,500). The project total was reduced with receipt of a Public Sector Energy Efficiency Program grant for $6,786. • With the IT Department, revised and completed Wilder Mansion security camera upgrade project using existing equipment by replacing and upgrading equipment that had reached the end of its useful life.

Improvement through Collaboration and Innovation

• Unified all aspects of member engagement, sales and retention under the Membership Services Supervisor with the addition of two part-time Membership Associates for improved coverage of open hours. • Hired an additional part-time membership assistant with the transition of the Financial Operations Supervisor to the Finance and Human Resources Department. • Continued to utilize RecTrac reporting to automate daily and monthly membership numbers, improve processes and increase online registration options, allowing for more time to build relationships with members. • Worked with IT Department to provide a shared Courts Plus email box for the membership services team, allowing all team members access to and the ability to respond to customer correspondence and provides a history of all correspondence at one location

Continuous Improvement through an Empowered Team

• Trained staff on the two core values of members – engagement and cleanliness, to help make every member experience at Courts Plus positive. • Provided Kids Plus staff the opportunity to participate in the planning of the monthly activity calendar, additional training including training from state agencies, such as SIDS of Illinois in addition to training opportunities through Gateways. 152 2018 BUDGET: EXPENDITURES BY FUNCTION

• Created a Wilder Mansion Instagram account and gave selected part-time staff the ability to update both the Instagram and Facebook pages. • Expanded the number of staff updating the Courts Plus Facebook page to include Membership Services to offer more posts in a timely manner. • Trained the Service Desk Staff, Registration Staff, Managers on Duty, and Sales and Retention Staff to say “Yes!” to reasonable requests (e.g., when a staff member has a question about a decision, he or she is coached through how to make the decision on their own, when appropriate).

2018 Work Plan

Vision 2020 Strategic Themes

Meet Community Needs for Parks, Open Space, and Outdoor Amenities

• Offer more free outdoor fitness classes utilizing District parks.

Meet Community Needs for New and Existing Indoor Recreation Space

• Replace Courts Plus original domestic hot water boiler, installed in 1989 ($113,500). • Replace existing Courts Plus pool filter tank, which is over 20 years old and welded shut ($65,000). • Complete Courts Plus interior enhancements, including energy efficient lighting fixtures in the café, service desk, upper and lower pool; facility painting, recoat poured rubber flooring in the Multipurpose Room, wall coverings and ceiling tiles ($29,500). • Sealcoat and crack fill Courts Plus parking lot to extend the useful life of the parking lot ($24,500). • Improve Wilder Mansion caterer food preparation lower level area by leveling concrete, replacing stairwell carpeting and installing VCT flooring ($20,700). • Replace Courts Plus original exterior sign that has reached the end of its useful life with new electronic sign that meets City of Elmhurst codes ($19,500). • Replace Kids Plus roof rubber membrane that has reached the end of its useful life with an energy efficient reflective white roofing system ($18,000).

Innovative Programming to Meet Community Needs

• Begin offering heart rate training style classes utilizing heart rate monitors and viewing screens to help members stay motivated through instant feedback. • Add trips, events, and interests that develop social engagement and connections. • Celebrate Wilder Mansion’s ten-year anniversary.

153 2018 BUDGET: EXPENDITURES BY FUNCTION

Exceptional and Consistent Guest Experience • Continue attendance and engagement at community events and with local businesses to educate them on indoor recreation space and the benefits of a Courts Plus membership. Investigate and potentially implement the ability for annual members to renew memberships online. • Continue member education and encouragement through the Courts Plus mobile app, including the convenience of checking-in, accessing the group exercise schedule with up-to-date changes, setting goals, recording workouts, participating in challenges, discounts and general information.

Sustainable Revenue Strategies and Funding Options

• Raise membership fees 10% to continue to provide quality facility and services currently offered. • Work with Elmhurst College towards Courts Plus becoming the fitness center for Elmhurst College students and staff. • Recruit local businesses to participate in the Courts Plus Perks membership rewards program that promotes local businesses and provides members access to discounts and special offers from these businesses. • Promote Fitness Incentive Program by encouraging members to reach a 2018 usage goal of 132 visits to earn a free month of membership dues. • Continue to effectively allocate staffing resources, including reducing service desk staff hours due to the membership services sales and retention staff positions added in 2017 (savings of $26,199), focusing on the busiest usage time periods by season for Fitness Floor staff (savings of $8,213), and adjusting Kids Plus hours to the highest use times for families at Courts Plus (savings of $19,016). • Evaluate usage trends for racquetball courts and strategize the best options for utilizing the space.

Employee Growth and Development

• Continue staff attendance at Club Industry, IPRA Fitness Roundtables and online training opportunities through fitness connections i.e., the Elmhurst Public Library.

2018 Budget Highlights

The Enterprise Services function budget expenses are increasing by 0.7% ($26,034) as compared to the 2017 Budget due primarily to increases in Contractual Services by 3.6% ($40,024) partially offset by a decreases in Wages by 0.4% ($8,451) and Supplies by 1.8% ($5,539).

Wages are decreasing overall by 0.4% ($8,451) due to an increase in full-time wages by 0.4% ($2,789) offset by a decrease in part-time wages by 0.8% ($11,240). In 2017, based on recommendations from the 2014-15 Staffing Study, the Financial Operations Supervisor position from the Enterprise Services Department shifted to the Finance Department, assuming additional responsibilities of the vacant Lead Accounting Clerk position in that department. As a result, the Enterprise Services function budget full-time wages decreased by $50,656 offset with increased wages for the Membership Services Supervisor, who assumed additional job duties due to the Financial Operations Supervisor changing departments (impact of $5,861). Full-time wages are also increasing by $25,750 to address the salary recommendations in the 2017 Compensation Study and $21,800 for merit increases. Part-time wages are decreasing primarily as a result of reducing Personal Training ($27,399) and Kids Plus ($19,016) budgeted hours offset with increased group exercise ($20,379) and membership services ($13,112) budgeted hours (due to adding additional free group exercise classes and two part-time member associates).

154 2018 BUDGET: EXPENDITURES BY FUNCTION

Contractual Services are increasing by 3.6% ($40,024) primarily due to increased health care expenses ($21,839), resulting from employee elections, Water and Sewer expenses ($9,000) due to higher rates, and telephone and cell phone expenses ($4,075).

Supplies expenses are decreasing by 1.8% ($5,539) primarily due to reduced spending for fitness programming supplies.

Future Outlook

Enterprise Services will continue to innovatively adapt its business plan and focus on its core strengths of community connection, member engagement and guiding members towards healthy lifestyle success in order to achieve its mission and contribute to the fiscal agility of the District. As the competition levels begin to peak throughout all areas of Enterprise Services offerings, Courts Plus and Wilder Mansion will continue to focus on their strengths at a competitive price while planning cost savings.

Expenditures by Object: Enterprise Services Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 2,177,163 2,140,027 2,210,288 2,201,837 (8,451) -0.4% Contractual Services 1,092,654 1,082,978 1,121,038 1,161,062 40,024 3.6% Repairs 135,459 114,668 125,165 125,165 - 0.0% Supplies 289,893 289,231 312,259 306,720 (5,539) -1.8% Total 3,695,169 3,626,904 3,768,750 3,794,784 26,034 0.7%

Performance Measures: Enterprise Services 2017 Projected 2018 Difference Difference Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Enterprise Services Program Registrations 12,193 10,974 10,974 - 0.0% Courts Plus Membership Accounts 4,379 4,155 4,279 124 3.0% Courts Plus Members 7,043 6,930 7,138 208 3.0% Courts Plus Daily Usage 423,410 415,365 425,749 10,384 2.5% Courts Plus Financial Assistance $10,206 $12,227 $12,594 $367 3.0%

155 2018 BUDGET: EXPENDITURES BY FUNCTION

Mission To grow the game of SUGAR CREEK GOLF COURSE golf by offering opportunities for all Description ages, genders, and skill levels to play golf and participate in The Sugar Creek Golf Course oversees all golf course maintenance, driving range various programs; and banquet operations, develops programs and corresponding pricing strategies to provide outstanding remain competitive in the marketplace, and maintains financial profitability by customer service and monitoring revenues and expenses within budgetary guidelines. All Sugar Creek offer professional expertise toward Golf Course Division expenses are funded by the user and budgeted in the Sugar developing distinctive Creek Golf Course Fund. No tax dollars are used to fund direct operational and industry-leading golf capital expenses. All operations are required to return a profit. programming; provide an excellent banquet 3 facility, offering first- 2017 Accomplishments class service with competitive, 2013-17 Strategic Plan Themes affordable pricing; and overall, enhance the Customer Centered facility and image to continually raise • Continued to serve as home course for golf teams from Willowbrook and York profitability while high schools. remaining competitive in the marketplace • Upgraded the 30-car golf car fleet with brand new models replacing 2011 models for the same price. The new models have higher fuel efficiency, which Funding Sources will result in reduced gas costs. User fees, passes, memberships, daily Fiscal Agility uses, merchandise sales and rental • Increased Junior Golf Camp fees by 10% since the program is at maximum income capacity and has been full for eight consecutive years. • Renovated the clubhouse deck by replacing the old deck, which had outlasted Revenues and its usefulness and purchased new deck furniture. expenses in… • Resurfaced and repaired an aged and crumbling section of the parking lot. Sugar Creek Golf Course Fund • As a result of wind damage from storms, replaced damaged driving range netting as well as installed new netting along the left side of #6 tee between the golf course and the Walmart store property. Full-time equivalent staff • Repaired drainage on the left side of #1 tee and restored the green.

10.2

156 2018 BUDGET: EXPENDITURES BY FUNCTION

2018 Work Plan

Vision 2020 Strategic Themes

Sustainable Revenue Strategies and Funding Options • Implement $1 per basket rate increase on the driving range by capitalizing on five-years of high demand and steady participation levels. • Implement a $1 price increase on 16 oz. cans of beer, which has not been increased since 2006 despite rising costs in the past 11 years. • Add six (6) new golf carts to complete the fleet at 36 carts.

Other

• Replace 12 year-old fairway mower ($45,000).

2018 Budget Highlights

As compared to the 2017 Budget, Sugar Creek Golf Course function expenses are decreasing by 3.5% ($27,396). Wages are increasing by 1.9% ($6,958) overall due primarily to a 2.76% ($4,507) full-time wage merit increase, and increased wages for part-time operations ($4,400) and driving range ($2,805) staff. These increases are partially offset by a reduction in part-time wages for facility maintenance staff ($6,000) due to a reduction in facility cleaning services based on actual usage over the past few years.

Contractual Services are decreasing by 10.1% ($19,377) overall as compared to the 2017 Budget primarily due to a 57% ($16,074) reduction in health insurance expenses due to a change in employee coverage elections combined with a 95% ($10,000) reduction in consulting services engineering services in 2017 for the Salt Creek Renovation. Offsetting these decreases is a 25% ($4,500) increase in electricity expenses and a 10% ($2,960) increase for equipment rental for six additional riding carts.

Repairs are decreasing by 30.3% ($4,000) primarily due to reduced building repairs due to completion of scheduled deck repairs in 2017.

Supplies are decreasing by 5.2% ($10,977) overall. The decrease is primarily due to the elimination of the lumber cost for scheduled deck repairs in 2017 ($5,500) combined with a reduction in budgeted grounds supplies ($3,064) and for new patio furniture and umbrellas purchased in 2017 ($3,000).

Future Outlook

Sugar Creek will continue to strive for uniqueness when it comes to maintaining outstanding conditions at an unbeatable value within the competitive marketplace. As a result of strong participation rates over the past five years, revenues have seen a steady growth based on strategic pricing targeted at areas of high demand within the facility. The 2018 budget will aim to strengthen the bottom line by increasing revenues in a few key high-demand areas while reducing expenses. As modern technology advances and new trends emerge in the industry, Sugar Creek will look to be a leader in providing the latest attractions, with a focus on providing a memorable experience for the golfer.

Staff will continue utilizing resources through the Elmhurst Park District and the Village of Villa Park for implementing future years of the equipment replacement plan, new deck replacement and other capital projects that maintain the quality, fiscal health and viability of the business.

157 2018 BUDGET: EXPENDITURES BY FUNCTION

Expenditures by Object: Sugar Creek Golf Course Difference % Change Expense Object 2015 Actual 2016 Actual 2017 Budget 2018 Budget ('17 to '18) ('17 to '18) Wages 349,676 355,404 361,904 368,862 6,958 1.9% Contractual Services 165,602 182,813 192,170 172,793 (19,377) -10.1% Repairs 9,394 7,699 13,205 9,205 (4,000) -30.3% Supplies 203,822 213,205 211,498 200,521 (10,977) -5.2% Total 728,493 759,122 778,777 751,381 (27,396) -3.5%

Performance Measures: Sugar Creek Golf Course 2017 Projected 2018 Difference Difference Performance Measure 2016 Actual Actual Projected ('17 to '18) ('17 to '18) Rounds of Golf 29,778 30,000 30,000 - 0.0% Number of Banquet Rentals 59 72 65 (7) -9.7% Number of Golf Outings 35 45 45 0 0.0%

158 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

Capital improvements enhance, expand or maintain the infrastructure that the District needs to provide programs and services to the community and support new growth and development. To ensure a high quality of services and amenities, infrastructure expansion and improvements must continue as the District’s demographics change and facilities age. The District’s ten-year Capital Improvement Plan (CIP) details long-range capital improvement needs by outlining $23.0 million in asset management, equipment, and technology improvements and $25.1 million in new and major redevelopment projects that the District plans to implement during a multi-year period. Similar to the Vision 2020: Comprehensive and Strategic Plans, it is a long-range planning tool that is annually reviewed and modified as funds and priorities change.

The District defines a capital project as:

• Relatively high monetary value: o At least $5,000 for operating equipment and machinery. o At least $25,000 for land acquisition and improvements. • Long useful life (at least five years). • Results in the creation of a fixed asset or the revitalization of a fixed asset.

The above definition of a capital project includes:

• Construction of new facilities; • Remodeling or expansion of existing facilities; • Purchase, improvement and development of land; • Operating equipment and machinery for new or expanded facilities; and • Planning and engineering costs related to a specific capital improvement.

The first year in the CIP becomes the capital budget for that fiscal year. Projects slated for subsequent years in the plan are approved on a planning basis only and do not receive funding until they are incorporated into the annual capital budget. Capital project revenues and expenses that do not fit within this definition (such as ongoing facility maintenance and repairs) are budgeted in the appropriate funds such as the General Fund, Recreation Fund, Museum Fund, Special Recreation Association Fund, Enterprise Services Fund and Sugar Creek Golf Course Fund.

Capital Planning Process The Long-range Capital Plan is developed using a team approach prior to completing the operating budget. Capital Planning Team members (Management Team and other staff involved in the planning and oversight of capital projects) compile project requests and present to the Team proposed projects on a park and facility tour. Being aware that there are always more project proposals submitted than can be funded, the Team reviews and discusses each proposed project to rank and prioritize them, considering their feasibility, necessity, condition, location, cost, method of financing, availability of grants and long-term impact on operations (including maintenance and future operating budgets).

To ensure that the Capital Plan is not merely a wish list, but rather a schedule of realistic needs based on available funding, staff use project evaluation criteria to effectively establish a relative priority for assessing and prioritizing projects. During the Capital Plan development process, departments determine which evaluation criteria are applicable to each project and then rank them based on their level of immediacy, impact and necessity for that project. The average criteria ranking of each project is then calculated to determine the relative priority of the project compared to the other proposed projects. There are five project priority categories: Highest, High, Medium, Low and No Need. This prioritization process provides a consistent and fair method for assessing projects during the capital planning process. On the next page is a listing and description of all the capital project evaluation criteria.

159 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

• Eliminates a threat to personal and public safety: A project that eliminates or reduces obvious hazards or threats to public health and safety.

• Satisfies or meets a legal requirement, liability or mandate that must be addressed in the next fiscal year (law, regulation or court order): A project that is required by federal or state statute, court order or regulation or a project that moves the District into further compliance with such mandates.

• Addresses completing a project commitment with dedicated funding, which has already been approved by the Park Board: A project that the District has already made a prior commitment to complete, is already in progress, or impacts the start or completion of another project.

• Advances the implementation of the District’s mission, vision, strategy, goals or policies approved by the Board of Park Commissioners: A project that addresses the implementation of strategies and goals approved by the Board of Park Commissioners (e.g., Strategic Plan, Comprehensive Plan, Park Master Plan).

• Satisfies or meets a legal requirement, liability or mandate that can be addressed in future years of the Capital Plan (law, regulation or court order): A project that is required in future years by federal or state statute, court order or regulation, or a project that moves the District into further compliance with such mandates.

• Improves the positive impact on the environment and reduces carbon footprint: A project that minimizes the carbon footprint of operations, preserves and promotes green space in the community and/or improves overall energy efficiency.

• Rehabilitates or replaces a facility or equipment that has reached its useful life and/or preserves existing resources/return on investment: A project that, through scheduled replacement, replaces or repairs existing infrastructure to maintain existing levels of service or return on investment (e.g., ball fields, fitness equipment, parking lots, etc.).

• Reduces future maintenance or operating costs: A project that lowers operating expenditures (e.g., reduces annual maintenance costs, eliminates obsolete equipment or inefficient facilities, etc.).

• Leverages available private or local, state or federal government funds: A project that can be financed with non-general government revenue sources.

• Results in generating net revenue that exceed the direct operational cost of facility/equipment and create a profit without using tax revenue: A project that covers its operating expenses through non-tax revenue and generates net income over expenses.

• Provides new or expanded level of service: A project that improves service quality, provides for higher standards of service for customers or maintains/increases the District’s competitive advantage. The new service may also accommodate facility demands and address projected growth patterns.

• Promotes intergovernmental cooperation and other partnership opportunities: A project that encourages partnerships and collaboration between various public, community, and private organizations and/or individuals to implement.

• Improves the way the District operates resulting in increased productivity and efficiency: A project that raises service quality, saves labor time, improves service, enhances communication, maximizes layout of space and/or enhances technology.

• Provides enhanced safety: A project that will reduce the District’s potential exposure to risk. While these criteria are important for determining recommended capital priorities, the reality of the District’s financial situation is critical to all decisions. Projects that are not funded or accomplished in a given year are reevaluated as part of the capital planning process and may be carried over to a future year.

160 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

2018 Capital Plan Funding and Projects On pages 17-19 of this section is the 2018-27 Capital Improvement Plan Summary that includes a listing of all the projected revenue sources and their amounts for the duration of the Long-range Capital Plan (where available) and a listing of proposed projects, the department responsible for their completion and their criteria rank, priority level, projected expenses spread over the years of the plan and projected total expenses.

2018 Capital Plan Funding

Percent of Proposed 2018 Capital Funding by Source

Proposed funding sources for the 2018 projects and the contingency total $3,406,361 and include the following:

Debt Proceeds ($338,958)

• 2018 (annual rollover) G.O. Bond proceeds in the Capital Improvement Fund ($338,958) for a portion of the Berens Park West Parking Lot and Oaklawn Avenue Parking Stalls Paving ($96,958) and the Vision 2020 Projects Professional Services ($100,000), Rolling Vehicle Stock Replacement ($72,000), and Maintenance Facility Parking Lot Replacement ($70,000).

Property Tax Levy ($303,987)

• Special Recreation Association Fund 2018 tax revenue ($200,000) to complete accessibility improvements and fund a portion of the Conrad Fischer Park Redevelopment.

• Museum Fund 2018 tax revenue ($14,000) to partially fund the Wilder Mansion Flooring Replacement and Renovation.

161 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

• Paving and Lighting Fund 2018 tax revenue ($89,987) to partially fund the Berens Park West Parking Lot and Oaklawn Avenue Parking Stalls Paving.

Cash and Investments ($2,392,966)

• General Fund cash and investments transferred to the Capital Improvement Fund ($423,195) for the Financial and Enterprise Resource Planning (ERP) and Payroll Software ($153,852), Parks and Facility Grounds Equipment Replacement ($80,000), PC Replacement ($70,000), Crestview Park Sled Hill Fence Replacement ($47,000), Document Imaging Software ($20,843), Security Camera System Upgrades ($8,500), Administration Building Window and Door Engineering ($8,000), and a portion of the Safety Town and Bicentennial Fountain Renovations ($35,000). • Recreation Fund cash and investments transferred to the Capital Improvement Fund ($1,038,750) for a portion of the Berens Park Synthetic Turf Fields Replacement ($691,250), a portion of the Conrad Fischer Park Redevelopment ($59,000), and the Wagner Community Center Roof Restoration ($275,000) and HVAC System Assessment ($13,500). • Special Recreation Association Fund cash and investments (from tax revenue levied in previous years) ($30,000) for the Eldridge Park West Playground Resurfacing. • Enterprise Services Fund cash and investments ($387,966) for Courts Plus capital projects, including: Fitness Equipment Replacement ($117,966), Domestic Boiler Replacement ($113,500), Pool Filter Replacement ($65,000), Interior Enhancements ($29,500), Parking Lot Sealcoating ($24,500), Exterior Sign Replacement ($19,500), and Roof Improvements ($18,000). • Capital Improvement Fund cash and investments ($463,055) for the Salt Creek Greenway Trail Connector project ($145,000) deferred in 2015; Contingency funds ($75,000), Berens Park Sled Hill Engineering ($35,000), a portion of the Conrad Fischer Park Redevelopment ($145,000), and a portion of the Berens Park West Parking Lot and Oaklawn Avenue Parking Stalls Paving ($63,055). • Paving and Lighting Fund cash and investments (from tax revenue levied in previous years) ($50,000) for a portion of the Berens West Parking Lot and Oaklawn Avenue Parking Stalls Paving.

Income (Earned in that Fiscal Year) ($55,000)

• General Fund Income ($10,000) from Athletic Field Advisory Committee (AFAC) member user fees transferred to the Capital Improvement Fund to partially fund the Salt Creek Park New Batting Cages. • Sugar Creek Golf Course Fund income ($45,000) for Sugar Creek Maintenance Equipment Replacement.

Grants/Donations ($315,450)

• People for Elmhurst Parks (PEP) donation ($6,700) in the Museum Fund to partially fund the Wilder Mansion Flooring Replacement and Renovation. • Elmhurst College and Elmhurst Youth Baseball donation ($20,000) in the Capital Improvement Fund to partially fund the Salt Creek Park New Batting Cages. • Elmhurst College payment ($233,750) in the Capital Improvement Fund to fund 25% of the 2018 Berens Park Synthetic Turf Fields Replacement. • Sponsorship revenue ($55,000) in the Capital Improvement Fund to fund Safety Town and Bicentennial Fountain Renovations.

162 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

2018 Capital Plan Projects and Contingency

Amount of Proposed 2018 Capital Project Expenses by Category

The proposed 2018 capital budget is $3,406,361 and a detailed description of each project (grouped by project category) is provided in this section, including its projected expenses, work to be accomplished and justification for inclusion in the 2018 capital budget.

Vision 2020 Planning ($100,000) Vision 2020 Projects Professional Services ($100,000): Based on the key findings and strategies in the Vision 2020 Plan, the 2018 Strategic Work Plan includes future capital projects which will require funding for engineering and architectural services in 2018 and will advance the implementation of the Plan approved by the Board on July 10, 2017. The key findings were based on community and stakeholder feedback and the outcomes of The Lakota Group's facility, parks, and programming needs assessment and identified projects such as a dog park, indoor sports facility, and 135 Palmer Drive redevelopment as high priorities. To determine the prioritization, timing, and funding for these projects, preliminary planning needs to be completed, including, but not limited to, site feasibility studies, facility master plans, design and engineering documents, cost projections, funding options, etc. Staff feels that this planning is the critical first phase for making the Vision 2020 recommendations a reality since it will provide the Board and staff with the information necessary for making sound decisions to meet current and future park, facility, and programming needs.

Park Improvements ($2,006,000) Berens Park Synthetic Turf Fields Redevelopment ($925,000): In 2018, staff recommends replacing the two synthetic turf fields in Berens Park for a total cost of $925,000 (fields C and D). In 2015, based on a third party assessment of these fields, the District completed repairs and maintenance to extend the life of these fields another three years so that athletic groups would not be adversely impacted by field conditions. Installed in 2008, these fields now have reached the end of their useful life and replacement is necessary to continue providing a safe surface for play, and meet the high demand for athletic field group usage. This project addresses the Vision 2020 Strategic Theme of Meeting Community Needs for Parks, Open Space, and Outdoor Amenities and is a high priority in the 2018 Strategic Work Plan.

163 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

The project expenses include engineering fees ($85,000) and the removal and replacement of the carpet and synthetic turf on both fields ($840,000). After project completion, staff will budget $5,000 annually for contractual field maintenance, including deep cleaning, fluff compacted crumb rubber sweeping, and debris removal with magnet. Based on the current agreement with Elmhurst College, the school is responsible for half of the replacement expense for field C (as the College funded 50% of its initial installation for continued priority use and per the use agreement is obligated to fund a portion of replacement). The College’s portion is a quarter of the overall project cost of $233,750. The District’s portion of project expenses will be funded utilizing Recreation Fund reserves of $691,250.

Conrad Fischer Park Redevelopment ($404,000): In the proposed 2018 Capital Plan, staff recommends improvements at Conrad Fischer Park to address deficiencies identified in the District’s ADA Transition Plan and based on the Vision 2020 Plan park assessment. Specific work includes the following:

• replacing and updating the playground equipment and surface, which have reached the end of their useful life, including adding ground level components and accessible components as identified in the District’s ADA Transition Plan ($300,000); • redeveloping and resurfacing the tennis courts ($90,000); • replacing existing asphalt path to meet ADA guidelines, including fixing cross slopes and accessible routes ($10,000); and • replacing the drinking fountain and installing a new concrete pad ($4,000).

This project addresses the Vision 2020 Strategic Theme of Meeting Community Needs for Parks, Open Space, and Outdoor Amenities and is a high priority in the 2018 Strategic Work Plan. The park scored low overall in the Vision 2020 park assessments (65 out of 100) and the individual amenity scores for the playground (49 out of 100) and tennis courts (68 out of 100) contributed to this low score. Additionally, replacing the old outdated playground will reduce maintenance costs and expand play opportunities for park users.

This project will be funded utilizing tax revenue in the Special Recreation Association Fund ($200,000 to address accessibility improvements) and Recreation Fund ($59,000) and Capital Improvement Fund ($145,000) reserves.

Berens Park West Parking Lot and Oaklawn Avenue Parking Stalls Paving ($300,000): As part of the upkeep, safety, and maintenance of the parks, staff proposes completing total grinding, resurfacing and repairing of the Berens Park West parking lot and parking stalls along Oaklawn Avenue, which are at the end of their useful life ($300,000). Although seal coating and maintenance extends the life of the asphalt, it eventually deteriorates and must be replaced for safe pedestrian and vehicle use. Additionally, this project will improve ADA accessibility and vehicle performance and reduce future environmental stress and maintenance costs.

This paving project will be funded utilizing 2018 (annual rollover) G.O. Bond proceeds ($96,958), Paving and Lighting Fund tax revenue ($89,987) and reserves ($50,000), and Capital Improvement Fund reserves ($63,055).

Salt Creek Greenway Trail Connector ($145,000): The 2018 capital budget includes funds for 20% of the total cost for completing the engineering and design ($58,000) and construction ($87,000) of a 740 ft. long by 6 ft. wide asphalt trail connection in proximity to Brush Hill Road south of Butterfield Road. The current alignment at this location has trail users on the shoulder of the road and traveling against the flow of traffic. Eighty percent (80%) of the total project cost is funded through an Illinois Transportation Enhancement Program (ITEP) grant.

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Preliminarily engineering for the project was completed in 2015. However, continued work on it is shifted to 2018 due to delayed Illinois Department of Transportation (IDOT) bid letting schedules and continued negotiations of the easement with the property owners at 360 Butterfield Road and the Astoria Place Homeowners Association. This project will be funded with Capital Improvement Fund reserves (grant funds are still available to fund 80% of project expenses).

Safety Town and Bicentennial Fountain Renovations ($90,000): In the 2018 capital budget, staff recommends updating and renovating Safety Town buildings and grounds ($55,000) and the area around the Bicentennial Fountain ($35,000), which are both located in Wild Meadows Trace.

The proposed Safety Town improvements include the following:

• replacing roofing, tuck pointing, and painting the mini buildings, which are beyond their useful life and require modernization; • replacing benches to meet ADA compliance for companion seating; • upgrading walkways, slopes, and curb cuts to comply with universal ADA standards; and • updating and modernizing signage, including those that identify sponsors of the buildings and amenities. Similar to when Safety Town was built in 1999, staff will seek sponsorships of the buildings and amenities to fund these improvements ($55,000 fundraising goal to match total project expenses). To provide a pleasant and accessible public space for park users, the Wild Meadows Trace Bicentennial Fountain renovations include the following:

• improving and rehabilitating the grounds around the fountain; • installing ADA compliant seating; and • tuck-pointing the brick of the fountain to help prevent water damage and provide stability to the masonry wall.

This portion of the project will be funded with General Fund reserves ($35,000).

Crestview Park Sled Hill Fence Replacement ($47,000): In 2018, staff recommends replacing the deteriorating chain-link fence at the top and bottom of the Crestview Park sledding hill, which is a popular winter recreational amenity in this park. The fence has reached the end of its useful life and replacing it would significantly improve the overall safety and aesthetics of the sled hill. This project will be funded utilizing General Fund reserves ($47,000).

Berens Park Sled Hill Engineering ($35,000): In the 2018 capital plan, staff recommends hiring an engineering firm to design and provide cost estimates for the re-grading of the slope at the Berens sled hill, restoration of the natural area surrounding the perimeter of the hill, and replacement of the fencing ($35,000). This future project will eliminate the deteriorating fencing and rough and uneven terrain and landscape that encompasses the sled hill as well as reduce the costs associated with ongoing fence repair and tree removals and maintenance. Furthermore, it would rehabilitate a key recreational amenity for the community as the sled hill is utilized year-round (in the winter for sledding and during other seasons as a unique component of fitness workouts). This project will be funded utilizing Capital Improvement Fund reserves ($35,000).

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Salt Creek Park New Batting Cages ($30,000): The proposed 2018 capital budget includes installing batting cages in the current bullpen area at Salt Creek Park to provide an additional training area for youth baseball and softball leagues, the Elmhurst College Softball team, and all park patrons. The project will be funded by AFAC Member User Fee revenue ($10,000) and Elmhurst College and Elmhurst Youth Baseball donations ($20,000).

Eldridge Park West Playground Resurfacing ($30,000): In 2018, staff proposes replacing the Eldridge Park West playground safety surfacing damaged by tree roots to ensure future safe and accessible use of the area by park patrons. This project will be funded utilizing Special Recreation Association Fund reserves since it will provide continued accessibility to the play area ($30,000).

Facility Improvements ($366,500)

Wagner Community Center (WCC) Roof Restoration ($275,000) and HVAC System Assessment ($13,500): To improve the customer experience and maintain the facility, the 2018 capital plan includes restoring the roof and conducting an engineering assessment of the HVAC system. Both proposed projects will be funded utilizing Recreation Fund reserves ($288,500).

In 2015, a thermal scan of the roof revealed no significant areas of deterioration, making it a good candidate for roof restoration, which will extend its life until a complete roof replacement is needed and preserve the integrity of the interior finishes of the facility. The project involves reusing the existing roof system, which would minimize removal and disposal costs while being environmentally friendly ($275,000).

In 2018, staff also proposes hiring an engineer to assess WCC’s existing HVAC equipment to recommend system upgrades (including four roof top units: three above offices and one above the Sunbeams & Rainbows classroom, as well as Classrooms 1 & 2) ($13,500). Staff’s ultimate goal is to replace the current system with modern, energy efficient units, which will positively impact the environment and require less maintenance, resulting in cost savings.

Maintenance Facility Parking Lot Replacement ($70,000): As per the intergovernmental agreement with the City of Elmhurst regarding shared facility use, the District utilizes space and amenities at the City’s Maintenance Facility (e.g. offices, work spaces, lunchroom, garage space, gas pumps). The City maintains the building and schedules necessary upgrades and based on the intergovernmental agreement, the District contributes 25% towards project costs. The City included in its capital plan the grinding and overlay of the parking lot, which is necessary for the City’s and District’s continued use of and access to the maintenance facility ($70,000 is the District’s portion of the cost). This project will be funded utilizing 2018 (annual rollover) G.O. Bond proceeds.

Administration Building Window and Door Engineering ($8,000): The original construction date of the District’s Administrative Offices is unknown, but estimated to be in the 1950's, with major additions and renovations until approximately 2000. The project involves hiring an engineer to assess the replacement of building windows and doors. The existing windows are not energy efficient and the doors require upgrading to provide an additional level of security and curb appeal. The engineering assessment will provide staff with good cost estimates as well as professional specifications for the future replacement project. This project will be funded utilizing General Fund reserves ($8,000).

Vehicles and Equipment Replacement (except for Enterprise Facilities) ($152,000) Best practice in fleet management and equipment replacement is to annually replace vehicles and equipment as they near the end of their useful life since they are essential for day to day maintenance operations. This practice allows for continued routine replacement, which maintains the trade-in or auction value of used vehicles and equipment and reduces long-term replacement costs. Also, changes in technology and ultra-specific tools and implements for equipment allow for greater efficiencies in the overall 166 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

maintenance operations, improving productivity and outcomes in the field. Recommended vehicle and equipment replacement for 2018 is described on the following page.

Parks and Facilities Grounds Equipment Replacement ($80,000): Mowers, loaders, and tractors are essential for day-to-day maintenance operations so staff annually recommends budgeting for the replacement of this equipment as it reaches the end of its useful life. As noted previously, delayed replacement can result in increased costs to maintain the equipment and potential project and maintenance task interruptions due to lost time for repairs. Staff recommends the 2018 vehicle purchase include one Parks Division utility tractor with an 80” aerator and end loader, which will replace two existing and deteriorating tractors that are 15 and 40 years old. The new tractor will be functional year-round as compared to the current equipment, which is operated only for seasonal maintenance and projects. The tractor will be funded utilizing General Fund reserves ($80,000).

Depending on the demand for used equipment and their condition, staff anticipates approximately a $6,000 return on the equipment for trade-in while also saving on future repair costs of approximately $8,000 annually.

Rolling Vehicle Stock Replacement ($72,000): Plowing, towing, and hauling takes a toll on fleet vehicles and as vehicles reach the end of their useful life, the rolling stock allows the District to cycle in new vehicles with higher fuel efficiency, while capitalizing on the return on investment by getting a higher trade-in value. This practice allows the District to keep the fleet of vehicles current, maintain the annual spending on vehicles at a relatively consistent level (decreasing the need for large multi-vehicle purchases), and reduce the impact of depreciation on the fleet.

In 2017, based on the current condition, mileage, and usage of the District’s fleet, staff postponed the vehicle replacement schedule, but recommends resuming it in 2018 with the purchase of two Facility Division vehicles: a Ford transit van and Ford pick-up with service body ($72,000). The current vehicles are both eight (8) years old and on the road daily. The transit van will be utilized by the District’s plumber and the pick-up with service body will function as a daily Facility maintenance vehicle. The pick-up will also be used for plowing snow and towing the special events trailer. The service body allows maintenance staff to store all of their tools securely in tool boxes around the perimeter of the bed, while still being able to utilize the bed for hauling larger items and equipment.

This purchase will be funded utilizing 2018 (annual rollover) G.O. Bond proceeds ($72,000). Revenue from trade-ins and auctions offset the impact of vehicle replacement costs. Depending on the demand for used vehicles and their condition, staff projects an estimated potential return of $3,000 from the trade-in/auction of the vehicles listed above and an annual savings of $5,000 for repair parts due to the replacement of these vehicles. Enterprise Facility Projects ($453,666)

To continue to meet enterprise facility financial goals and provide a quality customer experience, the 2018 proposed capital budget includes the following projects.

Courts Plus Fitness Equipment Replacement ($117,966): This project continues the implementation of the five-year fitness floor equipment purchase plan based on a useful life template, which focuses on upgrades to high use equipment while maximizing resale value. The District’s goal is to trade-in equipment before a significant increase in repairs and to remain competitive with other fitness providers as the new equipment provides the latest in fitness technologies and amenities.

In the 2018 capital budget, staff proposes purchasing twenty-five (25) spin bikes ($55,000) and Functional Strength line equipment for athletic training ($18,000) along with expanding the connectivity of internet capable cardio equipment ($7,725). The seven (7) year old spin bikes have frames with significant rust 167 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

damage due to high use, and staff is beginning to have difficulty finding original parts for repairs to the eleven (11) year old Functional Strength line. The proposed project costs also reflect the second of three installment contract payments ($37,241) for fitness equipment replacement that was approved by the Park Board on July 10, 2017. This project will be funded utilizing Enterprise Services Fund reserves ($117,966).

Revenue from the resale value of equipment impacts replacement costs. Depending on the demand for used equipment and their condition, staff projects an estimated potential return of $5,000 from reselling old equipment in 2018. Staff also estimate an annual repair/maintenance cost savings of $1,000 since the current equipment is no longer under warranty and repairs typically increase after three to four years for cardio equipment.

Courts Plus Domestic Boiler Replacement ($113,500): The 2018 capital budget includes funds to replace the Courts Plus domestic hot water boiler which was installed in 1989 and is beyond its useful life. The new boiler will be an energy efficient hot water on-demand system, which will reduce future fuel costs and provide uninterrupted hot water service to our members. The new equipment will also reduce service calls and repairs. As a result, operating expense savings are projected at $2,500 in the first year after installation and $2,000 in the second. This project will be funded utilizing Enterprise Services Fund reserves ($113,500).

Courts Plus Pool Filter Replacement ($65,000): In 2018, staff proposes replacing the Courts Plus pool filter tank, which is beyond its useful life at over 20 years old and is welded shut. A new pool filter will prevent equipment failure, thereby providing uninterrupted pool service to members. This project will be funded utilizing Enterprise Services Fund reserves ($65,000).

Sugar Creek Golf Course Maintenance Equipment Replacement ($45,000): With the average age of equipment over 16 years, staff recommends continuing the Sugar Creek Golf Course equipment replacement plan by replacing a fairway mower. As noted in the Vehicle and Equipment Replacement section, the age and inefficiency of equipment results in lower resale values that can be used toward purchasing new equipment. It also results in lost time (due to repairs and poor performance) and leads to a deterioration of the core facility and services, which results in reduced course revenue due to a lower quality product being offered. Some aged equipment becomes beyond repair and requires complete replacement as repair parts are no longer available. Also, newer equipment conforms to current EPA Tier 3 emissions and fuel standards, increasing fuel efficiency and decreasing pollution and fuel costs. This purchase will only be executed if it is financially feasible based on healthy Sugar Creek Golf Course Fund income levels after the third quarter of 2018 ($45,000).

Courts Plus Interior Enhancements ($29,500): In the 2018 capital budget, staff proposes making Courts Plus interior facility improvements to continue the welcoming appearance of the facility, create a pleasant fitness experience, compete with local fitness facilities, and reduce operating expenses. To maintain the inviting and aesthetically pleasing look of the facility interior, this project includes funds for general facility painting, updating wall coverings, and replacing ceiling tiles. Staff also proposes installing LED energy efficient lighting fixtures in the cafe, service desk and upper and lower pool areas. The District will realize long term savings from the LED lighting fixtures due to reduced energy consumption (potential annual savings of $2,000). This project also includes recoloring the poured rubber flooring, which is scratched and worn and the finish coat has reached the end of its useful life in the multipurpose room. This project will be funded utilizing Enterprise Services Fund reserves ($29,500).

Courts Plus Parking Lot Sealcoating ($24,500): Continued routine maintenance of asphalt extends the life of the product and reduces long term replacement costs. Therefore, staff proposes sealcoating, crack filling, and re-striping the Courts Plus lot in 2018. In 2017, the District completed repairs to cracked and worn portions of the asphalt, curbs, and aprons to also protect the long term integrity of the lot and useful life of the asphalt. This project will be funded utilizing Enterprise Services Fund reserves ($24,500). 168 2018 BUDGET: CAPITAL IMPROVEMENT PLAN

Wilder Mansion Flooring Replacement and Renovation ($20,700): In the 2018 capital budget, staff proposes two capital projects at Wilder Mansion. To improve the food preparation area on the lower level, the first project involves leveling the concrete floor and installing VCT (vinyl composition tile) flooring along with replacing stairwell carpeting ($12,500). This update will provide appropriate, safe, and easier to maintain flooring for food service and high-traffic areas along with improving the working conditions for mansion staff and outside vendors.

To maintain the heavily used wood flooring so that the facility continues to be a desirable high-quality event rental space, the second mansion capital project is replacing the existing wood flooring on the second level ($8,200). In 2017, the District replaced wood flooring in the main level Wilder Room and in 2016, the wooden flooring in the White Birch Room and hallway on the main level.

Both projects will be funded utilizing the Museum Fund tax levy revenue ($14,000) and a donation from the People for Elmhurst Parks (PEP) Foundation ($6,700).

Courts Plus Exterior Sign Replacement ($19,500): Since the current Courts Plus exterior sign is over 20 years old and beyond its useful life, staff proposes replacing it with a new electronic sign that meets City of Elmhurst codes. The updated sign is proposed to have new technology, provide advertising space and improve the appearance of facility from the street. In the 2019 budget, staff proposes adding landscaping improvements around the sign. This project will be funded utilizing Enterprise Services Fund reserves ($19,500).

Courts Plus Roof Improvements ($18,000): Beyond its useful life, staff proposes improving the Courts Plus roof in phases starting with the Kids Plus rubber membrane in 2018. This replacement will reduce maintenance expenses due to repetitive service calls for roof repairs, and temporary placement of buckets above the ceiling due to leaks which cause damage and discoloration of tiles. Future project phases include replacement of fitness floor rubber membrane in 2019, between tennis court pods in 2020, and café in 2021. This project will be funded utilizing Enterprise Services Fund reserves ($18,000).

Information Technology ($253,195)

Financial Enterprise Resource Planning (ERP) and Payroll Software ($153,852): The 2018 capital budget includes the proposed purchase of new financial management software, which will incorporate purchasing, budgeting, accounts payable, human resources management, payroll, and ledger reporting into one automated system. The new software will also allow for improved cost recovery measurement, reporting, tracking of purchases, and access to timely financial information. Currently, the District has separate payroll and financial software systems (with no electronic purchasing capabilities) and uses an in- house created interface software for staff to access financial information with limited report capabilities. The payroll software is antiquated and uses Foxpro, a text-based programming language and database management system which is no longer supported by Microsoft Windows, which is the operating system used by the District.

Some of the specific capabilities of the new software include, but are not limited to, the following:

• electronic purchasing that will allow users to directly enter purchase orders, automatically encumber budgeted dollars, and provide routing for electronic approval; • streamlined budget preparation interfaces with other District financial and registration software; • user-friendly, customizable software workspaces; • information sharing between departments;

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• elimination of excessive data entry; • querying options and built-in reporting capabilities that allow for standard and custom reporting; • drill down dynamic data and automatic report generation for detail analysis; and • transaction auditing as details of entries are stored in the software in addition to copies of support documentation.

The anticipated project cost includes software ($45,435), hardware ($2,662), and implementation and training fees ($105,755). Maintenance support on the new software is projected at approximately $9,100, which will result in a savings of $25,400 annually ($34,500 is the maintenance cost for the current software) and a return on investment of six years. This purchase will be funded utilizing General Fund reserves.

PC Replacement ($70,000): In the 2018 capital budget, staff recommends replacing approximately 70 workstations/laptops based on a cyclical replacement schedule, The District is nearing the end of the three- to-four year hardware lifecycle for these devices, which were last upgraded in 2014. It is essential for end- user equipment to be relevant to keep up with vendor releases as well as to replace malfunctioning or defunct workstations (currently, the District has only two spare workstations). Based on industry best practice, staff recommends replacing all of the devices in one year so that workstations utilize the same operating system version and hardware, reducing break fix repairs and downtime and facilitating consistent software image builds. This purchase will be funded utilizing General Fund reserves ($70,000).

Document Imaging Software ($20,843): In the 2018 capital budget, staff recommends the purchase of document imaging software to streamline the management of membership, registration, and employee documents/forms (e.g., program paperwork, health records, human resource forms, vendor documentation, etc.). The software will improve the organization, accessibility, and efficiency of document storage and retrieval for District staff and customer/members. Additionally, it will reduce paper and printing costs, decrease file cabinet storage space, enable the quick retrieval of paper documents, and enhance the security of document storage and access.

The projected project costs reflect software ($16,435), hardware ($1,000), and installation, training and consulting fees ($3,408), which will all be funded utilizing General Fund reserves. Annual support fees are projected at $3,617 (for ten licenses).

Security Camera System Upgrades ($8,500): In 2015 and 2016, the District upgraded and expanded the Wagner Community Center and Courts Plus security systems. In 2017, the Wilder Mansion system was upgraded. In 2018, staff recommends replacing the low-definition analog security cameras and DVR (digital video recorder), which are reaching the end of their useful life, with new digital cameras and NVR (network video recorder) at The Hub ($4,000), Sugar Creek ($1,000), The Abbey ($1,000) and East End Pool ($2,500). Additional digital cameras will be added and/or better positioned at The Abbey, The Hub, and East End pool improving security for these locations. Digital cameras and NVRs are competitively priced to analog counterparts, and NVR recorders provide larger capacity for recording and retention. Additionally, replacing the outdated NVRs will allow for consistent management of all security systems. The proposed project costs include the hardware, licensing, and installation fees, which will be funded with General Fund reserves ($8,500). Contingency ($75,000) Contingency ($75,000): Funds are allocated for unanticipated emergencies and change orders.

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Impact of Projects on the Operating Budget During the capital planning process, staff develops estimates for the financial impact of proposed projects on the operating budget during the three-year period after project completion. This section provides an overview of how capital expenses may or potentially may affect the District’s current and future operating budgets and services. This financial impact analysis is critical to consider when determining capital project funding and priorities so adequate resources are available to open, manage and/or maintain upgraded or new facilities and equipment and to appropriately prioritize projects based on the funding available in current and future budgets.

Park Improvements and Amenities: A majority of the District’s capital plan projects are for the redevelopment of existing parks or repairs to existing structures that have a minimal impact on operating expenses. However, new park amenities and improvements may have an impact on future operating expenses to meet increased supply, material, and/or maintenance needs. For example, to ensure a safe playing surface and extend the life of the turf product, staff will allocate $5,000 for annual contractual maintenance, including deep cleaning, fluff compacted crumb rubber sweeping, and debris removal with magnet of the synthetic turf fields at Berens Park proposed for replacement in 2018. Park projects may also lead to a slight increase in supply expenses such as the new sand volleyball courts at York Commons (proposed for 2019), which will result in a $500 annual budget impact to purchase replacement sand annually. Similarly, the new Plunkett Park athletic field irrigation system proposed for 2023 will also lead to a slight increase in expenses for utilities due to water usage and for maintenance to start-up the system at the beginning of the season and shut it down at the end ($350 annual impact overall).

New Facilities: Large-scale facility development and expansion upgrades typically do have a significant impact on future operating expenses, including staffing, maintenance, utilities, supplies, etc. For example, staff proposes in future years of the Capital Plan to construct a 6,000 square foot storage garage in Berens Park to accommodate the maintenance needs of north side parks and facilities since the District’s main maintenance facility is on the south side of Elmhurst. This project would increase annual utility costs by approximately $8,700 and maintenance costs by $5,000 offset with a reduction in road travel, resulting in less fuel use and wear-and-tear on vehicles.

Technology Projects: To continue to meet changing technology needs, staff included projects in the capital plan for new and upgraded hardware and software, which typically have an impact on the operating budget. Although a portion of the operating expenses may already be in the budget, if the project involves upgrading or replacing existing hardware/software, expenses may increase or decrease due to the system needs of the new/upgraded software (e.g., annual maintenance fees). For example, the proposed upgrade to the financial and payroll systems in 2018 will result in decreased operational expenses of $25,400 in the first year and $25,218 in the second year due to lower annual maintenance fees for the new software as compared to the current software. Conversely, operating expenses may increase when a new type of software is purchased by the District such as the document imaging software proposed for 2018, which has annual support fees of $3,617.

Equipment Replacement: Annually replacing our oldest vehicles and equipment allows staff to work as efficiently as possible and meet customer service expectations as newer vehicles and equipment require less repairs resulting in shorter downtime and provide greater performance. For example, annual fitness equipment replacement is projected to result in annual maintenance cost savings from $1,000 to $4,500 after purchase due to replacing equipment no longer under warranty. Also, equipment has a higher resale value when it is not past its useful life; therefore, if staff purchases new equipment according to the recommended replacement schedule rather than waiting until it is no longer usable, the District can utilize those dollars toward the purchase of new equipment. Depending on the demand for used equipment and its condition, staff projects a potential annual average trade-in value of $10,300 for the next three years of the fitness equipment replacement plan.

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Similar to fitness equipment, replacing vehicle and grounds maintenance equipment can potentially offset expenses from trade-ins and auctions. Depending on the demand for used equipment and its condition, staff expects approximately a $6,000 return on the equipment being replaced in 2018. Additionally, in the first year after purchase, the District will realize savings in equipment parts and repairs of approximately $8,000 for equipment. The savings on parts and maintenance typically decreases by half in the second year. The District also realizes similar savings when replacing vehicles, including trade-in/auction value and savings in vehicle parts and maintenance one year after purchase ($3,000 and $5,000 respectively for the proposed 2018 vehicle purchases). Similar to equipment, the savings on parts and maintenance typically decreases in the second year by half.

Building Improvements: Building improvements can lead to a reduction in long-term operating expenses. Energy saving projects such as replacing existing lighting systems with energy efficient ones can reduce utility costs. For example, staff projects that the proposed replacement of fixtures in the Courts Plus café, service desk, and upper and lower pool areas in 2018 will lead to a potential approximate savings of $2,000 annually (new fixtures have a third of the daily electricity use as compared to current non-LED fixtures).

Replacing building systems can also lead to energy savings such as the proposed replacement of the Courts Plus domestic boiler in 2018. Due to technology improvements, this new equipment will reduce service calls and material and energy costs, resulting in a projected annual savings of $2,500 in the first year and $2,000 in the second year after installation. Specifically, these savings are due to a reduction in fuel consumption from installing a green high efficiency boiler and repair expenses due to installing new equipment.

If the District were to install a permanent tent at The Hub facility (proposed for 2019), the District would realize a reduction in annual staff maintenance ($250), woodchip replacement ($600) and tent rental and repair costs ($3,000) as staff would no longer need to put-up and take-down the tent or pay repair costs after severe storms. Also, the District could potentially receive approximately $5,000 for selling the existing tent.

Revenue Generating Improvements: After a project is completed, it may also impact revenues and as a result, offset an increase in operating expenses. For example, staff proposes buying a commercial washer and dryer in 2019 to add towel service to the current membership amenities offered at Courts Plus. Operating expenses are projected to increase an average of $14,200 annually (the first three years) for the cost of purchasing towels and cleaning supplies and for staff to provide this service. These expenses will be offset by the additional annual average projected revenue of $13,500 (the first three years) from members using the towel service. The projected net impact on the operating budget is $1,500 of additional expenses during the first year of use, $500 the second year and $0 during the third year.

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Five-year Comparison of Capital Expenses The chart below illustrates capital plan project expenditures for 2014 to 2016 and budgeted expenditures for 2017 and 2018.

Capital Plan Historical Expenses 5,000,000 2014 2015 2016 2017 2018 4,500,000 Actual Actual Actual Budget Budget 4,000,000 3,500,000 1,006,849 1,724,584 3,925,362 4,355,030 3,406,361 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget

As compared to the 2017 Budget, capital project expenses are decreasing by 27.9% ($948,669) in the proposed 2018 Budget due primarily to the 2017 purchase and initial stages of abatement of the 135 Palmer Drive property and a lower amount of capital project spending in 2018 to maintain healthy reserve levels for future capital project spending. When comparing 2016 actual to 2017 budgeted capital expenses, 2017 budgeted capital expenses increased by 9.9% ($429,668) to fund the purchase and initial stages of abatement of the 135 Palmer Drive property. When comparing 2015 to 2016 actual capital project expenses, 2016 capital spending increased significantly (56.1% or $2,200,778) due to the Butterfield Park Redevelopment and Playground for Everyone project expenses in 2016 being significantly higher than park redevelopment project expenses in 2015.

Vision 2020 and ADA Transition Plans Vision 2020 Plan: In July 2017, the Board approved the Vision 2020 Plan, which updated the District’s Comprehensive and Strategic Plans. The Plan provides long-term recommendations for the coordinated development and maintenance of District parks and facilities, as well as potential future infrastructure and land expansion. Facilitated by an independent planning firm, the District gathered extensive community feedback in 2016-17 to develop the Plan, including focus groups, open forums, and community surveys along with compiling feedback from full-time and part-time staff via staff meetings and surveys. The planning firm also conducted a needs assessment, which included an evaluation of District parks, facilities, and programs along with demographic, trend, and level of service analyses. The feedback collected and needs assessment outcomes shaped the Vision 2020 Plan key findings and recommendations, which were utilized to develop an action plan that will drive long-range planning, direct decision-making, and assist with allocating District resources in the next three to five years.

Prior to the 2018 capital budgeting process, staff reviewed the Vision 2020 recommended park and facility improvements to assess how they align with current replacement plans, determine which projects should be integrated into the District’s Long-range Capital Plan and prioritize these projects based on immediacy, feasibility, need, and available funding and resources. Staff updated the long-range capital plan based on this analysis so that project priorities, timing, and funding would reflect the outcomes of the Vision 2020 Plan. By integrating the Vision 2020 recommendations into the Capital Plan, the District has made a

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commitment toward addressing future development needs identified through an extensive independent assessment of the parks, facilities, and programs along with community feedback. These recommendations serve as guidelines for the Board, which will weigh economic feasibility and project timing when considering the implementation of recommended park and facility solutions.

Americans with Disabilities Act (ADA) Transition Plan: In 2011, the District hired a consultant to conduct an ADA accessibility audit to update the District’s ADA transition plan to be in compliance with the new regulations set forth by the Department of Justice (effective March 15, 2011). In 2012, staff finalized the development of that Plan with the consultant, including prioritizing recommendations, developing cost estimates, and integrating projects into the Long-range Capital Plan and Department work plans. In the Capital Plan, staff identified the projects that need to be completed to become ADA compliant to ensure that the projects are considered and weighted appropriately as part of the capital planning review process. Staff tracks when projects are completed and makes updates to the plan as necessary to ensure it remains relevant.

Depreciation Per Illinois State statute (70 ILCS 1205/4-4), the budgetary basis of reporting states that expenses occur when cash is actually being disbursed. This definition indicates that the cash outlay for a capital project would be an expense required for budgeting purposes. Depreciation Expense is used in financial reporting in accordance with Generally Accepted Accounting Principles (GAAP) and is not a disbursement of cash. Therefore, with the approval of the District’s auditors, Lauterbach & Amen, budgeted expenses only include capital as an expense in the Budget and Appropriation Ordinance. The audited financial statements, which are reported using GAAP, continue to reflect depreciation expenses as required.

2018-27 Long-range Capital Plan Summary A copy of the 2018-27 Long-range Capital Plan Summary is provided on the following pages. For projects in the 2018 Capital Budget, project titles reflect work to be performed in 2018 and may not reflect work proposed for future years of the Plan (2019-27). Also, 2018 budget and future-year park and facility asset management projects are presented separately from future new and major redevelopment projects on pages 17-19 (asset management projects are listed in the first summary section of Proposed Capital Project Expenses and major/new redevelopment projects are in the second summary section) and the overall summary of Capital Improvement Plan Revenues and Expenses (on page 17) reflect park and facility asset management projects only. The Department Acronyms are as follows: P&F (Parks and Facilities), ENT (Enterprise Services), SC (Sugar Creek Golf Course), IT (Information Technology), FIN&HR (Finance and Human Resources), and ADM (Administration). The priority ranking categories and related criteria average ranges that fall within those categories are as follows: A-Highest (4.00); B-High (2.50-3.00); C-Medium (2.00-2.49); D-Low (1.25-1.99); E-No Need (Below 1.25).

174 Elmhurst Park District 2018-2027 Capital Plan Summary

Summary of Proposed 2018-27 Capital Improvement Plan (Revenues-Expenses) Asset Management, Equipment, and Technology Improvements Only

FY 18 FY 19 FY 20 FY 21 FY 22 FY 23-27 Total ('18-'27) Total Revenues 3,406,361 619,785 644,537 675,644 696,222 5,469,418 11,511,966

Total Expenses 3,406,361 5,249,854 3,030,803 2,039,405 1,525,750 7,991,324 23,004,431 Difference (0) (4,630,069) (2,386,266) (1,363,761) (829,528) (2,521,906) (11,492,465)

Summary of Approved 2017 and Proposed 2018-27 Capital Project Revenue

FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23-27 Total ('18-'27) Debt Proceeds Annual Rollover G.O. Bond in Capital Improvement Fund (Various 2018 Capital Projects) 348,584 338,958 328,898 352,741 382,930 402,581 3,996,532 5,802,640 Property Tax Levy Current Year Special Recreation Association Fund Tax Levy (2018 Conrad Fischer Park Redevelopment) 200,000 200,000 200,000 200,000 200,000 200,000 1,000,000 2,000,000 Current Year Paving and Lighting Fund Tax Levy (2018 Berens West Parking Lot and Oaklawn Ave. Parking Stalls Paving) 89,096 89,987 90,887 91,796 92,714 93,641 472,886 931,910 Current Year Museum Fund Tax Levy transfer to Capital Fund (2018 Wilder Mansion Flooring Replacement and Renovation) 13,250 14,000 0 0 0 0 0 14,000 Cash and Investments (Budgeted and Accrued in Previous Years) General Fund Cash and Investments transfer to Capital Improvement Fund (Various 2018 Capital Projects) 339,200 423,195 0 0 0 0 0 423,195 Recreation Fund Cash and Investments transfer to Capital Improvement Fund (Various 2018 Capital Projects) 339,200 1,038,750 0 0 0 0 0 1,038,750 Special Recreation Association Fund Cash and Investments (2018 Eldridge Park West Playground Surfacing) 60,000 30,000 0 0 0 0 0 30,000 Enterprise Services Fund Cash and Investments (Various 2018 Courts Plus Capital Projects) 210,000 387,966 0 0 0 0 0 387,966 Capital Improvement Fund Cash and Investments (2016 Salt Creek Greenway Trail Connector deferred-ITEP grant future reimbursement) 145,000 145,000 0 0 0 0 0 145,000 Capital Improvement Fund Cash and Investments (Various 2018 Capital Projects) 914,400 318,055 0 0 0 0 0 318,055 Paving and Lighting Fund Cash and Investments (2018 Berens West Parking Lot and Oaklawn Ave. Parking Stalls Paving) 0 50,000 0 0 0 0 0 50,000 Income (Earned in the Year the Project is Budgeted) General Fund Transfer of AFAC Member User Fee Revenue to Capital Fund (2018 Salt Creek Park New Batting Cages) 30,000 10,000 0 0 0 0 0 10,000 Sugar Creek Golf Course Fund Income (2018 Maintenance Equipment Replacement) 32,000 45,000 0 0 0 0 0 45,000 Grants/Donations/Partnership Agreements PEP Donation in Capital Improvement Fund (2018 Wilder Mansion Flooring Replacement and Renovation) 6,500 6,700 0 0 0 0 0 6,700 Elmhurst College and Elmhurst Youth Baseball Donations in Capital Improvement Fund (2018 Salt Creek Park New Batting Cages) 0 20,000 0 0 0 0 0 20,000 Elmhurst College Payment in Capital Improvement Fund (2018 Berens Park Synthetic Turfs Field Replacement) 0 233,750 0 0 0 0 0 233,750 Safety Town Donations in Capital Improvement Fund (2018 Safety Town Renovations) 0 55,000 0 0 0 0 0 55,000

Total Revenue 2,727,230 3,406,361 619,785 644,537 675,644 696,222 5,469,418 11,511,966

1Project titles in the 2018 Capital Budget reflect work proposed for 2018 and may not reflect work proposed for 2019-27. 175 2Priority: A-Highest; B-High; C-Medium; D-Low; E-No Need

Summary of Proposed Capital Project Expenses Asset Management, Equipment, and Technology Improvementsy Project Name/Description1 Category Dept. Type Rank Level2 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23-27 Total Berens Park Synthetic Turf Fields Replacement Athletic Fields P&F Asset Management 4.00 A 925,000 37,000 155,000 300,000 0 500,000 1,917,000 Conrad Fischer Park Redevelopment Park Redevelopment P&F Upgrade 2.83 B 404,000 70,800 0 0 0 0 474,800 Berens Park West Parking Lot & Oaklawn Ave. Stalls Paving Parking Lots P&F Asset Management 2.60 B 300,000 220,000 90,000 0 0 0 520,000 Wagner Community Center Roof Restoration Building Exterior P&F Asset Management 2.33 C 275,000 0 0 0 0 0 275,000 Financial ERP and Payroll Software Information Technology FIN&HR Upgrade 3.00 B 153,852 0 0 0 0 0 153,852 Salt Creek Green Way Trail Connector Trails and Paths P&F Upgrade 4.00 A 145,000 0 0 0 0 0 145,000 Fitness Equipment Replacement Fitness Equipment ENT Asset Management 2.00 C 117,966 147,619 216,037 80,650 0 663,324 1,225,596 Courts Plus Domestic Boiler Replacement Mechanical Systems ENT Asset Management 2.83 B 113,500 0 62,500 0 0 0 176,000 Vision 2020 Projects Professional Services Professional Services ADM Planning 3.00 B 100,000 0 0 0 0 0 100,000 Safety Town and Bicentennial Fountain Renovations Play Area P&F Asset Management 2.40 C 90,000 28,000 0 0 0 0 118,000 Parks and Facilities Grounds Equipment Replacement Grounds Equipment P&F Asset Management 2.50 B 80,000 100,000 84,000 24,000 53,000 150,000 491,000 Rolling Vehicle Stock Replacement Vehicles P&F Asset Management 2.00 C 72,000 145,000 195,000 125,000 125,000 500,000 1,162,000 Maintenance Facility Parking Lot Replacement Parking Lots P&F Upgrade 4.00 A 70,000 37,500 0 23,750 316,250 0 447,500 PC Replacement Information Technology IT Asset Management 3.00 B 70,000 0 0 70,000 0 0 140,000 Courts Plus Pool Filter Replacement Mechanical Systems ENT Asset Management 3.00 B 65,000 34,000 72,000 45,000 69,000 0 285,000 Crestview Park Sled Hill Fence Replacement Park Amentities P&F Upgrade 2.75 B 47,000 75,000 30,000 0 0 425,000 577,000 Sugar Creek Golf Course Maintenance Equipment Replacement Equipment/Machines/Vehicles SC Asset Management 2.86 B 45,000 40,000 40,000 45,000 35,000 150,000 355,000 Berens Park Sled Hill Engineering Professional Services P&F Upgrade 2.33 C 35,000 457,000 0 0 0 0 492,000 Salt Creek Park New Batting Cages Park Amenities P&F Upgrade 2.50 B 30,000 537,800 0 0 0 0 537,800 Eldridge Park West Playground Resurfacing Play Areas P&F Asset Management 2.67 B 30,000 190,000 380,000 50,000 0 400,000 1,050,000 Courts Plus Interior Enhancements Building Interior ENT Asset Management 2.17 C 29,500 72,500 110,000 147,500 75,000 53,000 487,500 Courts Plus Parking Lot Sealcoating Parking Lots ENT Asset Management 2.50 B 24,500 0 350,000 0 0 0 374,500 Document Imaging Software Information Technology IT Upgrade 2.50 B 20,843 0 0 9,005 0 0 29,848 Wilder Mansion Flooring Replacement and Renovation Building Interior ENT Asset Management 2.60 B 20,700 52,500 25,000 10,000 42,500 0 150,700 Courts Plus Exterior Sign Replacement Building Site ENT Asset Management 2.00 C 19,500 12,500 0 0 0 0 32,000 Courts Plus Roof Improvements Building Exterior ENT Asset Management 2.00 C 18,000 37,500 142,500 0 0 767,500 965,500 Wagner Community Center HVAC System Assessment Building Interior P&F Asset Management 3.00 B 13,500 444,300 125000 0 175,000 0 757,800 Security Camera System Upgrades Information Technology IT Upgrade 2.50 B 8,500 0 0 0 0 0 8,500 Administration Building Window and Door Engineering Building Interior P&F Asset Management 2.00 C 8,000 85,000 70000 0 0 0 163,000 East End Park Redevelopment Park Redevelopment P&F Upgrade 2.50 B 0 475,000 0 0 0 0 475,000 Abbey Asset Management Buildings P&F Asset Management 2.40 C 0 271,850 0 0 0 0 271,850 Garden Plot Development New Construction P&F Upgrade 3.00 B 0 187,000 0 0 0 0 187,000 York Commons Sand Volleyball/Basketball Park Play Fields/Courts P&F Upgrade 2.00 C 0 182,985 0 0 0 0 182,985 Pioneer Park Upgrades Parking lots P&F Upgrade 2.80 B 0 154,000 0 0 0 350,000 504,000 Portable Stage Equipment and Machines P&F Upgrades 2.50 B 0 150,000 0 0 0 0 150,000 Court Resurfacing Athletic Courts P&F Asset Management 2.80 B 0 125,000 40,000 20,000 75,000 95,000 355,000 Sugar Creek Driving Range Asset Management Equipment SC Asset Management 3.00 B 0 112,000 0 0 0 0 112,000 Courts Plus Racquetball Court Improvements Equipment/Machines ENT Asset Management 2.00 C 0 92,000 48,000 0 0 0 140,000 Smalley Asset Management Outdoor Pools P&F Asset Management 3.00 B 0 88,500 0 0 0 0 88,500 CP Sanitary Lift Station Improvement Project Mechanical Systems ENT Asset Management 2.60 B 0 85,000 0 0 0 0 85,000 Courts Plus Laundry Equipment Equipment/Machines ENT Asset Management 2.00 C 0 58,500 0 0 0 0 58,500 Courts Plus HVAC Replacement Equipment/Mechanical Systems ENT Asset Management 2.14 C 0 57,000 85,000 62,500 0 0 204,500 Baseball Field Renovations Athletic Fields P&F Asset Management 1.00 E 0 38,500 33,000 27,500 50,000 125,000 274,000 Seal Coating Parking Lots P&F Asset Management 3.00 B 0 38,000 29,500 0 0 0 29,000 Wagner Community Center Carpet Replacement Schedule Building Interior P&F Asset Management 3.00 B 0 35,000 0 0 0 30,000 65,000 Hub Improvements Miscellaneous Maintenance P&F Asset Management 2.00 C 0 30,000 0 0 0 0 30,000 Sugar Creek Entrance Fencing Building Site SC Asset Management 2.33 C 0 25,000 0 0 0 0 25,000 Sugar Creek Clubhouse/Banquet Room Asset Management Buildings SC Asset Management 2.50 B 0 25,000 0 0 0 0 25,000 Courts Plus Tennis Area Improvements Buildings ENT Asset Management 2.57 B 0 23,000 27,500 149,000 25,000 15,000 239,500 Van Voorst Redevelopment Trails/Paths/Parking Lots P&F New/Major Development 3.00 B 0 22,000 0 125,000 0 0 147,000 Butterfield Recreation Building Asset Mgmt. Buildings P&F Asset Management 2.40 C 0 20,000 0 0 0 0 20,000 Sugar Creek Golf Course Well Maintenance Equipment SC Asset Management 3.00 B 0 18,000 0 0 0 0 18,000 Hub Facility Rental improvements Buildings P&F New/Major Development 2.00 C 0 17,500 175,000 0 0 0 192,500 Trails and Paths Paving Trails and Paths P&F Asset Management 2.60 B 0 10,000 58,566 225,000 0 237,000 450,000 Wild Meadows Trace Improvements Park Redevelopment P&F Upgrade 2.50 B 0 10,000 0 0 0 0 10,000

1Project titles in the 2018 Capital Budget reflect work proposed for 2018 and may not reflect work proposed for 2019-27. 176 2Priority: A-Highest; B-High; C-Medium; D-Low; E-No Need y Project Name/Description1 Category Dept. Type Rank Level2 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23-27 Total Backstops and Fences Athletic Fields P&F Asset Management 2.75 B 0 0 150,000 60,000 150,000 385,000 745,000 Productivity Software Information Technology IT New/Major Development 3.00 B 0 0 68,000 0 0 0 68,000 SAN (Storage Area Network) and Hosts Information Technology IT Upgrade 2.75 B 0 0 61,700 0 0 0 61,700 Sugar Creek Golf Course Fuel Tank Replacement Equipment/Machines SC Asset Management 3.00 B 0 0 25,000 0 0 0 25,000 Blood Pressure Machine Equipment/Machines ENT Asset Management 2.00 C 0 0 7,500 0 0 0 7500 Ben Allison Redevelopment Park Redevelopment P&F Upgrade 2.75 B 0 0 0 365,500 0 0 365,500 Jaycee Tot Lot Redevelopment Play Areas P&F Upgrades 2.33 C 0 0 0 0 200,000 0 200,000 Crestview Asset Management Crestview Asset Management P&F Asset Management 3.00 B 0 0 0 0 60,000 0 60,000 Sugar Creek Golf Course Creek Repairs Miscellaneous Maintenance SC Asset Management 4.00 A 0 0 0 0 0 1,000,000 1,000,000 Racquetball Courts Conversion Buildings ENT Upgrade 2.00 C 0 0 0 0 0 615,000 615,000 Marjorie Davis Redevelopment Park Redevelopment P&F Upgrade 2.00 C 0 0 0 0 0 375,000 375,000 Plunkett Park Redevelopment Athletic Fields P&F Upgrade 2.00 C 0 0 0 0 0 350,000 350,000 Courts Plus Emergency Power Equipment/Machines ENT Asset Management 2.00 C 0 0 0 0 0 135,000 135,000 Kiwanis Park Redevelopment Trails/Paths Parking Lots P&F Asset Management 2.67 B 0 0 0 0 0 95,000 95,000 Sugar Creek Irrigation Pump System Replacement Equipment/Machines SC Asset Management 1.33 D 0 0 0 0 0 80,000 80,000 Wilder Mansion Emergency Power Equipment/Machines ENT Upgrade 2.00 C 0 0 0 0 0 62,500 62,500 Sidewalk Replacement Park Redevelopment P&F Asset Management 2.50 B 0 0 0 0 0 58,000 58,000

Contingency 75,000 75,000 75,000 75,000 75,000 375,000 750,000

Total Expenses 3,406,361 5,249,854 3,030,803 2,039,405 1,525,750 7,991,324 23,004,431

Summary of Proposed New and Major Redevelopment Expenses (includes Vision 2020 Future Year Projects) Government Assets Project Name/Description1 Category Dept. Type Criteria Priority FY 18 FY 19 FY 20 FY 21 FY 22 FY 23-27 Total 135 Palmer Land Development Professional Services P&F Major/New Development 3.50 B 0 3,432,820 0 0 0 0 3,432,820 Dog Park Development Professional Services Admin/P&F New/Major Development 3.00 B 0 50000 0 0 0 0 50,000 Wagner Community Center Expansion Buildings P&F New/Major Development 3.00 B 0 308,000 8,008,000 0 0 0 8,316,000 Wilder Building (225 Prospect) Buildings P&F Upgrade 2.00 D 0 108,000 0 0 0 0 108,000 Crestview Recreation Building Replacement Buildings P&F New/Major Development 2.75 C 0 0 1,000,000 0 0 0 1,000,000 Smalley Pool Bathhouse Replacement Outdoor Pools P&F New/Major Development 2.33 D 0 0 0 0 0 2,500,000 2,500,000 North Side Maintenance Facility Buildings P&F New/Major Development 2.33 D 0 0 0 0 0 792,000 792,000 Land Acquisition Land Acquisition ADM New/Major Development 2.33 D 0 0 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000

Total Expenses 0 3,898,820 10,008,000 1,000,000 1,000,000 4,292,000 20,198,820

Enterprise Assets Project Name/Description1 Category Dept. Type Criteria Priority FY 18 FY 19 FY 20 FY 21 FY 22 FY 23-27 Total Courts Plus Expansion Buildings ENT Upgrade 2.25 D 0 0 3,998,000 0 0 0 3,998,000 Sugar Creek Maintenance Facility Redevelopment Buildings SC New/Major Revelopment 2.83 C 0 0 0 0 0 875,000 875,000

Total Expenses 0 0 3,998,000 0 0 875,000 4,873,000

1Project titles in the 2018 Capital Budget reflect work proposed for 2018 and may not reflect work proposed for 2019-27. 177 2Priority: A-Highest; B-High; C-Medium; D-Low; E-No Need THIS PAGE INTENTIONALLY LEFT BLANK

1Project titles in the 2018 Capital Budget reflect work proposed for 2018 and may not reflect work proposed for 2019-27. 178 2Priority: A-Highest; B-High; C-Medium; D-Low; E-No Need 2018 BUDGET: DEBT SERVICE OVERVIEW

Debt financing is used to fund one-time capital expenditures that are part of the long-range Capital Improvement Plan. In 2004, the Illinois General Assembly restored the District’s bonding authority to $1.04 million annually and in 2010, approved that this amount could increase annually based on the Consumer Price Index. These actions provide the District the ability to use long-term debt instruments and operating surpluses to finance large capital projects and repay outstanding debt rather than relying on funds that are needed to meet operating expenses. The District prepares detailed analyses of existing obligations, current and projected reserves and future liability levels before making a decision to issue new debt or refinance existing debt such as the refunding of the G.O. Debt Certificates in February 2012 (saving taxpayers over $440,000 in interest expenses over the next 10 years) and the 2006 G.O. Limited Tax Bonds in April 2014 (saving taxpayers $204,528 during the remaining twelve-year life of the reissued bonds). At the end of 2017, the District is proposing to issue debt in the principal amount of $2,650,000 to finance the acquisition and initial site preparation of newly acquired properties at 135 Palmer Drive, 447 Armitage Avenue, and 207 Hampshire Avenue. The projected annual payment for principal and interest on the new debt in 2018 is $161,936.

The District’s current and proposed debt portfolio for 2018 is illustrated in the chart below: Outstanding Debt

Principal and Interest Amount of Amount of Amount of Bond Issue Funding Source Total Outstanding as 2018 Principal 2018 Interest 2018 Total of 12/31/2017 Payme nt Payme nt De bt Payme nt

General Obligation Limited Tax Refunding Debt Certificates, Series 2012

Annual Rollover General 1,930,000 273,750 36,900 Expansion of Sugar Creek Golf Course Obligation Bond and (WCC) (WCC) (SC) and purchase and redevelopment 150,338 414,200 Sugar Creek Golf of Wagner Community Center (WCC) 2,080,338 91,250 12,300 Course Fund Revenues (SC) (SC)

Debt Certificates, Series 2012A 825,000 Purchase of 375 W. First Street, Debt Service Tax Levy 134,200 55,000 14,850 69,850 Administrative Offices 959,200

General Obligation Limited Tax Park Refunding Bond, Series 2014A

Redevelopment of East End Pool and 3,540,000 Debt Service Tax Levy Wilder Mansion and installation of two and transfer from Early 413,197 405,000 87,956 492,956 synthetic turf athletic fields at Berens Bond Repayment Fund Park 3,953,197

Proposed Debt for 2018

2018 General Obligation Annual Rollover Bond 1 672,075 Debt payment for Limited Tax Refunding Debt Certificates Series Debt Service Tax Levy 26,883 672,075 26,883 698,958 2012 and fund capital improvements 698,958

2017 Land Acquisition Debt 1 2,650,000 Debt payment for 2017 Land General and Recreation 65,762 96,174 161,936 Acquisition Debt Tax Levy 1,423,836 4,073,836 1 Estimate (interest portion will be determined when the bond sale is negotiated) 179

2018 BUDGET: DEBT SERVICE OVERVIEW

2018 Proposed Debt Service Revenue The 2018 bond payments of $1,837,900 detailed in the chart on the previous page (in the last column titled “Amount of 2018 Total Debt Payment”) are budgeted in the Debt Service Fund along with bank and finance charges of $1,500 and legal fees of $5,000. Revenues in the Debt Service Fund to cover these payments are as follows:

• Taxes levied totaling $1,192,034 to pay the majority of the 2014A G.O. Limited Tax Park Refunding Bond for East End Pool and Wilder Mansion, the Debt Certificates Series 2012A for the purchase of the Administrative Offices at 375 W. First Street and the 2016 G.O. Annual Rollover Bond; • A transfer from the Early Bond Repayment Fund to the Debt Service Fund of $35,900 for the additional debt service portion of the 2014A G.O. Limited Tax Park Refunding Bond that funded the installation of two synthetic turf fields; • A transfer of $103,550 from the Sugar Creek Golf Course Fund to the Debt Service Fund to pay the Sugar Creek Golf Course portion of the 2012 G.O. Limited Tax Refunding Debt Certificates; • A transfer of $80,968 from both the General Fund and from the Recreation Fund to the Debt Service Fund to pay proposed 2017 debt financed for the acquisition and initial site preparation of newly acquired properties at 135 Palmer Drive, 447 Armitage Avenue, and 204 Hampshire Avenue, and • General Obligation Annual Rollover Bond proceeds of $360,000 for the Wagner Community Center portion of the 2012 G.O. Limited Tax Refunding Debt Certificates. The remainder of Annual Rollover Bond proceeds will be recorded in Capital Improvement Fund revenue to fund various capital projects ($338,958 less interest).

The Sugar Creek Golf Course Fund includes a transfer of $125,675 to the Village of Villa Park to pay the portion of the debt issued by the Village to purchase and develop the driving range.

Bond Rating 180 2018 BUDGET: DEBT SERVICE OVERVIEW

In 2006, the District’s operations were reviewed by representatives from Moody’s Investor Service through an onsite visit of parks and facilities and an analysis of financial information prior to the issuance of the 2006 $7.5 million G.O. Limited Tax Bonds. Moody’s upgraded the District’s bond rating from an Aa3 to Aa2 rating reinforcing the District’s healthy financial position. Moody’s report cited the District’s “well-managed finances and healthy reserves, strong management and program flexibility and Elmhurst’s location and economy,” as reasons for the rating upgrade. According to Moody’s interim 2010 rating report, the rating agency upgraded the District’s bond rating again (from Aa2 to Aa1), illustrating the District’s excellent financial condition. This rating enables the District to acquire debt financing for infrastructure or major capital at a significant savings of interest.

Debt Limit The legal debt limits as of September 30, 2017 for the District are 2.875% of equalized assessed valuation (EAV) for total debt issued including referendum and non-referendum bonds. The District has approximately $64 million in legal debt margin. The legal debt limit for non-referendum bonds is 0.575% of assessed valuation or $12.8 million. Bonds are not included in the computation of statutory indebtedness unless the taxes levied to pay for such obligations are in fact extended. The District’s long-term debt outlook is healthy as the District’s current percentage of legal debt limit is 12% of the total limit or $7,777,027 (total remaining available limit is $56,135,627) and for non-referendum General Obligation debt, the percentage of legal debt limit is 36% of the total limit or $4,607,027 (total remaining available limit is $8,175,504). The calculations illustrated below do not include the $2,650,000 for the land acquisition debt projected to be acquired before December 31, 2017. The District’s projected percentage of legal debt limit will be approximately 16% of the total limit and for non-referendum General Obligation debt, the percentage of legal debt limit will be approximately 57% of the total limit. The District’s Moody’s Investors Services Aa1 rating illustrates that the District is within a fiscally responsible level of debt. The chart below illustrates the legal debt margin calculations.

Estimated Legal Debt Margin Calculations (as of September 30, 2017) Tax Year 2016 EAV (collectable calendar year 2017) 2,223,048,837 Non-Referendum General Obligation Debt Limit (0.575% of EAV) 12,782,531 Statutory Debt Limit (2.875% of EAV) 63,912,654

Less: Bonded Debt Debt Certificates, Series 2012A (due 10/27/32) 880,000 880,000 General Obligation Limted Tax Refunding Debt Certificates Series 2012 (due 11/01/22) 2,290,000 2,290,000 Annual Rollover 667,027 667,027 667,027 General Obligation Limited Tax Park Refunding Bonds, Series 2014 (due 12/15/25) 3,940,000 3,940,000 3,940,000 Total Outstanding Debt: 7,777,027 4,607,027 7,777,027

Total Available Legal Debt Margins: 8,175,504 56,135,627

Percentage of Debt Limit Committed 36% 12%

This chart illustrates the District’s debt service requirements to maturity of all outstanding debt with the annual principal and interest payments listed separately for each outstanding bond issue: 181

2018 BUDGET: DEBT SERVICE OVERVIEW

DEBT SERVICE REQUIREMENTS TO MATURITY

2017 Bonds 2012 G.O. Ltd Tax 2012 G.O. 2014 Ltd Tax General Obligation Land Aquisiion Refunding Debt Certificates Debt Certificates Park Refunding Bonds Bonds-Annual Issued $2,650,000 Issued $3,710,000 Issued $1,100,000 Issued $4,455,000 Fiscal Year Estimate Estimate Interest: 2.00% - 3.00% Interest: 0.60% - 2.50% Interest: 1.95% - 3.50% Totals Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2018 672,075 26,883 65,840 96,096 365,000 49,200 55,000 14,850 405,000 87,956 1,562,915 274,985 2019 68,691 93,709 380,000 38,250 55,000 14,245 415,000 79,856 918,691 226,060 2020 73,782 91,218 385,000 29,700 55,000 13,585 430,000 65,331 943,782 199,834 2021 73,858 88,542 395,000 21,037 55,000 12,870 435,000 56,946 958,858 179,396 2022 78,936 85,864 405,000 12,150 55,000 12,100 450,000 47,594 988,936 157,709 2023 78,998 83,002 55,000 11,275 460,000 36,906 593,998 131,183 2024 84,063 80,137 55,000 10,395 465,000 25,406 604,063 115,938 2025 84,111 77,089 55,000 9,460 480,000 13,200 619,111 99,749 2026 89,161 74,039 55,000 8,470 144,161 82,509 2027 94,195 70,805 55,000 7,425 149,195 78,230 2028 94,210 67,390 55,000 6,325 149,210 73,715 2029 99,227 63,973 55,000 5,170 154,227 69,143 2030 104,225 60,375 55,000 3,960 159,225 64,335 2031 104,205 56,595 55,000 2,695 159,205 59,290 2032 109,183 52,817 55,000 1,375 164,183 54,192 2033 114,143 48,857 114,143 48,857 2034 119,082 44,718 119,082 44,718 2035 124,000 40,400 124,000 40,400 2036 128,897 35,903 128,897 35,903 2037 133,771 31,229 133,771 31,229 2038 133,622 26,378 133,622 26,378 2039 142,217 21,533 142,217 21,533 2040 145,624 16,376 145,624 16,376 2041 148,905 11,095 148,905 11,095 2042 157,055 5,695 157,055 5,695 Total 672,075 26,883 2,650,000 1,423,836 1,930,000 150,338 825,000 134,200 3,540,000 413,197 9,617,075 2,148,453

182 2018 BUDGET: DEBT SERVICE OVERVIEW

This chart illustrates the District’s debt service requirements to maturity of all outstanding debt, including the total annual payment for each outstanding bond issue:

DEBT SERVICE REQUIREMENTS TO MATURITY

General 2017 Bond 2012 G.O. Ltd Tax 2012 G.O. 2014 Ltd Tax Obligation Land Aquisition Refunding De bt Park Refunding Fiscal Year Bonds-Annual Debt Estimate Debt Certificates Certificates Bonds Totals Estimate Issued $2,650,000 Issued $3,710,000 Issued $1,100,000 Issued $4,455,000 Interest: 2.00% - 3.00% Interest: 0.60% - 2.50% Interest: 1.95% - 3.50% 2018 698,958 161,936 414,200 69,850 492,956 1,837,900 2019 162,400 418,250 69,245 494,856 1,144,751 2020 165,000 414,700 68,585 495,331 1,143,616 2021 162,400 416,037 67,870 491,946 1,138,253 2022 164,800 417,150 67,100 497,594 1,146,644 2023 162,000 66,275 496,906 725,181 2024 164,200 65,395 490,406 720,001 2025 161,200 64,460 493,200 718,860 2026 163,200 63,470 226,670 2027 165,000 62,425 227,425 2028 161,600 61,325 222,925 2029 163,200 60,170 223,370 2030 164,600 58,960 223,560 2031 160,800 57,695 218,495 2032 162,000 56,375 218,375 2033 163,000 2034 163,800 2035 164,400 2036 164,800 2037 165,000 2038 160,000 2039 163,750 2040 162,000 2041 160,000 2042 162,750 Principal 672,075 2,650,000 1,930,000 825,000 3,540,000 9,617,075 Interest 26,883 1,423,836 150,338 134,200 413,197 2,148,453 Total 698,958 4,073,836 2,080,338 959,200 3,953,197 11,765,528

183

2018 BUDGET: DEBT SERVICE OVERVIEW

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184

2018 BUDGET: GLOSSARY

The Annual Budget contains terminology unique to public finance and budgeting. This glossary was prepared to assist the reader with understanding some of the terms.

Accrual Basis: The basis of accounting under which revenues are recorded when earned and expenses when the liability is incurred.

Aggregate Tax Extension: The aggregate tax extension is the total of the tax levies excluding Special Recreation Association and Bond and Interest.

Appropriation: An authorization for a specific time period granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and as to the time when it may be expended.

Assessed Valuation: A value established for real or personal property to use as a basis for levying property taxes. Illinois law requires real property to be assessed at 33-1/3 percent of fair cash value. (The County Assessor establishes property values.)

Assets: Property owned by a government.

Audit Fund: Is used to account for the revenues and expenditures in connection with the annual financial audit that is mandated by State statute. The revenues are received from a specific property tax levy, which can only be used for this purpose.

Basis of Accounting: A term used when revenues, expenditures, transfers, assets and liabilities are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on the cash, modified accrual, or the accrual method.

Bond: A written promise to pay a specified sum of money (called the face value or principal amount) at a specified date in the future (called the maturity date) together with periodic interest at a specified rate.

Bonded Debt: That portion of indebtedness represented by outstanding bonds.

Budget: A fiscal plan showing estimated expenditures, revenue and service levels for a specific fiscal year. The budget is the primary means by which the expenditure and service levels of the District are controlled.

Budget and Appropriation Ordinance: A legal document adopted by the Board authorizing expenditures.

Budget Calendar: The schedule of key dates or milestones that the District follows in the preparation, adoption and administration of the budget.

Budget Surplus: For any given year, the budget surplus is the excess of budget receipts over expenses. The amount of the surplus is the difference between receipts and expenses.

Budgeted Staffing: Total work force expressed as Full-time Equivalent (FTE) positions. The FTE is calculated on 2,080 hours. For example, an employee working 40 hours per week for six months, or 960 hours, would be equivalent to .46 of a full-time position.

185 2018 BUDGET: GLOSSARY

Budgetary Control: The level at which management must seek government body approval to amend the budget once it has been approved.

Capital Assets/Improvements: An acquisition or addition to fixed assets that has a value of $5,000 or more, and an estimated useful life of greater than five years. General categories commonly used include: land, buildings, building improvements, machinery and equipment and construction in progress.

Capital Improvement Program: A long-term plan for capital expenditures to provide physical improvements to be incurred over the next ten years. The plan is reviewed and amended annually. Capital Improvement Budget: A Capital Improvement Program (CIP) budget is a separate budget from the operating budget. Items in the CIP are usually construction projects designed to improve the value of the government assets and are included in the first year of the ten year Capital Improvement Plan. Examples of capital improvement projects include new buildings and equipment and large scale remodeling and redevelopment.

Capital Improvement Fund: A fund created to account for financial resources to be used for projects in the Capital Improvement Budget for that fiscal year. No taxes are levied specifically for this fund. Funds are provided primarily by transferring revenue from other funds, donations, and grants.

Capital Outlays: Expenditures for the acquisition, replacement, or improvement of capital assets.

Cash Management: The management of cash necessary to pay for government services while investing temporary cash excesses to earn interest revenue. Cash management refers to the activities of forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment, establishing and maintaining banking relationships, and investing funds to achieve the balance of the highest interest and return, liquidity and minimal risk with these temporary cash balances.

Comprehensive Plan: Long-range planning tool updated every five to ten years and developed through a community planning process. It provides direction regarding the development and acquisition of agency’s current and potential physical assets.

Consumer Price Index (CPI): A calculation of the average change in prices for goods and services purchased by households which is measured by the Bureau of Labor Statistics in the U.S. Department of Labor. A tax cap or the CPI, whichever is less, limits the annual property tax revenue received by the Park District.

Contingency: An appropriation of funds to cover unforeseen events that occur during the fiscal year, such as flood, emergencies, federal mandates, increased revenues, and similar eventualities.

Contractual Services: The amount budgeted and appropriated for departmental and functional operating services. This includes, but is not limited to, utilities, consultants and outside contractor services, audit fees, printing, insurance, and training.

Corporate Personal Property Replacement Tax: Law enacted in 1979 to replace the corporate personal property tax. It consists of a State income tax on corporations, trusts, partnerships and a tax on the invested capital of public utilities. The tax is collected by the Illinois Department of Revenue and distributed to over 6,000 local governments based on each government’s share of Corporate Personal Property tax collections in a base year (1976 in Cook County or 1977 in Downstate Counties).

DCEO: Illinois Department of Commerce and Economic Opportunity.

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2018 BUDGET: GLOSSARY

Debt Service: The District’s obligation to pay the principal and interest of all bonds and other debt instruments according to a pre-determined payment schedule.

Debt Service Fund: Is established to account for the accumulation of resources for, and the payment of, principal and interest on long-term debt.

Depreciation: That portion of the cost of a capital asset that is charged as an expense during a particular period. This is a process of estimating and recording the cost of using up a fixed asset.

Effective Tax Rate: Is a measure of the property tax burden that reflects both the aggregate tax rate and the level of assessment.

Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises or where the intent of the governing body is that the costs of providing the goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. This type of fund measures economic performance or that the determination of revenues earned, costs incurred and/or net income is accurate for management accountability.

Equalization: The application of a uniform percentage increase or decrease to assessed values of various areas or classes of property to bring assessment levels, on average, to a uniform level of market value.

Equalization Factor (multiplier): The factor that must be applied to local assessments to bring about the percentage increase or decrease that will result in an equalized assessed valuation equal to one- third of the market value of the taxable property in a jurisdiction.

Equalized Assessed Valuation (EAV): The assessed value multiplied by the State equalization factor minus adjustments for exemptions. Taxes are calculated based on this property value.

Exemption: The removal of property from the tax base. An exemption may be partial, as a homestead exemption, or complete as, for example, a church building used exclusively for religious purposes. Park District properties are tax-exempt.

Expenditure: This term refers to the cost incurred to acquire goods or receive services regardless of when the expense is actually paid.

Expense Category: A means of identifying and analyzing the obligations incurred by the District in terms of the nature of the goods or services purchased (e.g., salaries and wages, supplies, contractual services, repairs, capital outlays) regardless of the function involved or purpose of the programs for which they are used.

Extension: The actual dollar amount billed to the property taxpayers of a district. The County Clerk extends all taxes.

FICA Fund: Is used to account for the revenues and expenditures associated with the obligation to make payments to the Social Security Administration for the employer portion of the FICA payroll tax. The revenues are received from a specific property tax levy, which produces an amount sufficient to pay the District’s contributions on behalf of the District’s employees. Expenditures are limited to payment of the employer portion of the FICA tax for non-enterprise salaries and wages of park district employees.

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Fiscal Year (FY): The time period designating the beginning and ending period for recording financial transactions. Elmhurst Park District uses January 1 to December 31 as its fiscal year.

Fixed Assets: Assets of a long-term character that are intended to continue to be held or used, such as land, buildings, and equipment.

Full-time Equivalent Employees: FTE’s are a calculation of the number of full-time employees based on a 2,080 hour work year and include full- and part-time.

Function: A major administrative division of the District that indicates overall management responsibility for an operation.

Fund: An independent fiscal and accounting entity with a self-balancing set of accounts. Commonly used funds in public accounting are: general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds and fiduciary funds.

Fund Accounting: A governmental accounting system that is organized and operates on a fund basis. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions.

Fund Balance: The assets of a fund less liabilities, as determined at the end of each fiscal year. Any reserved portions of fund balance are deducted to result in an “unreserved fund balance.”

Gateway Special Recreation Association: An organization consisting of members whose function is to provide recreation services for individuals with disabilities. The Park District is a contributing member to Gateway.

Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative body on the application of GAAP to state and local governments is the Governmental Accounting Standards Board (GASB).

General Fund: The principal operating fund of the District. It accounts for all revenues and expenditures of the District not accounted for in other funds. Most governmental services are provided by the General Fund including, but not limited to Park Services and Administrative Services.

General Obligation Bonds: Bonds that finance public projects such as new buildings and major renovation projects. The repayment of these bonds is made from property taxes and the bonds are backed by the full faith and credit of the issuing entity.

Goals: Concise statements describing the specific elements an organization must do well in order to execute its strategy.

Governmental Accounting Standards Board (GASB): The ultimate authoritative body that sets accounting and financial reporting standards for state and local governments.

Government Finance Officers Association (GFOA): An association of public finance professionals that have played a major role in the development and promotion of GAAP for state and local government since its inception in 1906.

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2018 BUDGET: GLOSSARY

Governmental Fund Types: Funds used to account for the acquisition, use and balances of expendable financial resources and the related current liabilities, except those accounted for in proprietary and trust funds. Expendable assets are assigned to a particular governmental fund type according to the purposes for which they may or must be used. Current liabilities are assigned to the fund type from which they are to be paid. The difference between the assets and the liabilities of governmental fund types is referred to as fund balance. The measurement focus in these fund types is on the determination of financial position and changes in financial position (sources, uses and balances of financial resources), rather than on net income determination. The statement of revenues, expenditures and changes in fund balance is the primary governmental fund type operating statement. It may be supported or supplemented by more detailed schedules of revenues, expenditures, transfers and other changes in fund balance. Under current GAAP, there are four governmental fund types: general, special revenue, debt service and capital projects.

Grant: A contribution by a government or other organization to support a particular function. Typically, these contributions are made to the system from the state or federal government or from private foundations.

Illinois Association of Park Districts (IAPD): A nonprofit service, research and education organization representing park districts, forest preserves, conservation and recreation agencies. The District is a member of IAPD.

Illinois Parks and Recreation Association (IPRA): A non-for-profit organization and public interest group whose goal is to provide training, networking and outreach for Illinois park and recreation professionals.

IMRF Fund: Is used to account for the revenues and expenditures associated with the Illinois Municipal Retirement Fund. The Illinois Municipal Retirement Fund is a Multiple-Employer Agent retirement plan in which the government participates. The revenues are received from a specific property tax levy, which produces an amount sufficient to pay the Park District’s contributions to the Fund on behalf of the District’s employees. Expenditures are limited to payment of the retirement plan contributions for non- enterprise salaries and wages excluding employee contributions.

Inclusion Costs: Expenses associated with the cost of providing reasonable accommodation to facilitate the participation of individuals with disabilities in programs.

Income: A term used in proprietary fund type accounting to represent (1) revenues, or (2) the excess of revenues over expenses.

Infrastructure: Capital assets such as roads, bridges and water systems that have a longer life than most capital assets.

Interest Earnings: The earnings from available funds invested during the year in U.S. Treasury Bonds, Certificates of Deposit and other securities as approved in the Board of Park Commissioner’s investment policy.

Initiatives: the specific programs, activities, projects or actions an organization will undertake in an effort to meet Strategic Plan performance targets.

Investments: A security or other asset acquired primarily for the purpose of obtaining income or profit.

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Levy: (verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (noun) The total amount of taxes, special assessments or service charges imposed by the District.

Liabilities: Debts or other legal obligations arising out of transactions in the past that must be liquidated, renewed, or refunded at some future date.

Liability Insurance Fund: Is used to account for the revenues and expenditures associated with the Park District’s insurance and risk management activities. The revenues are received from a specific property tax levy.

Limiting Rate: The maximum extended tax rate that the aggregate tax extension may increase (5% or the increase in the Consumer Price Index (CPI), whichever is lower). The aggregate tax extension is the total of the tax levies excluding Special Recreation Association and Bond and Interest. The formula for deriving the limiting rate is prior year levy multiplied by the CPI or 5%, whichever is lower, divided by the prior year levy (with any % increase) less a credit for estimated new construction. See Property Tax Extension Limitation Law.

Long Term Debt: Debt with a maturity of more than one year from the original date of issuance.

Maintenance: All materials or contract expenditures covering repair and upkeep of buildings, machinery and equipment, systems, and land improvements.

Mission: Departmental mission describes the purpose of a department and how it supports the overall mission of the organization. The District’s mission describes the core purpose of the organization and why it exists.

Modified Accrual Basis: Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the basis amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The government considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources.

Multiplier: See equalization factor.

Museum Fund: This fund accounts for revenues and expenditures related to the operation of the Wilder Museum/Conservatory and all utility and non-enterprise hospitality rental, meeting and community event expenses at the Wilder Mansion.

National Recreation and Parks Association (NRPA): A non-for-profit organization and public interest group whose goal is to advocate for quality park and recreation opportunities nationally. The Park District is a member of NRPA.

Net Income: Proprietary fund excess of operating revenues, non-operating revenues, and operating transfers over operating expenses, non-operating expenses, and operating transfers out.

Non-Referendum Bonds: General Obligation Bonds that can be issued without a referendum based on outstanding debt service extensions when the tax cap went into effect. 190

2018 BUDGET: GLOSSARY

Operating Budget: A financial plan outlining estimated revenues and expenditures and other information for a specified period excluding capital plan revenues and expenses (usually a fiscal year).

Operating Expenses: Fund expenses that are directly related to the fund’s primary service activities.

Ordinance: In its most common meaning, the term is used to designate the enactments of the legislative body of a local government. An ordinance is the equivalent of a municipal statute, passed by the body, for governing matters not already covered by federal or state law.

PARC: Park and Recreational Facility Construction Grant Program (PARC)

Paving & Lighting Fund: Is used for the purpose of constructing, maintaining and lighting streets/roadways within the areas maintained by the District.

PDRMA (Park District Risk Management Agency): An agency that administers a joint risk management pool for government entities. The Park District is a member of PDRMA.

Performance Measures: A standard used to evaluate and communicate performance against expected results and to assist staff with determining organizational performance.

Program: An instructional or functional activity.

Property Tax Extension Limitation Law: In July 1991, the Illinois General Assembly enacted the Property Tax Limitation Act. In January 1994, the provisions of the Property Tax Limitation Act were replaced by the Property Tax Extension Limitation Law, part of the Property Tax Code (the “Property Tax Limitation Law”). This Act limits the increase in property tax extensions to 5% or the percent increase in the national Consumer Price Index (CPI), whichever is less. The Act became effective October 1, 1991, and first applied to the 1991 levy year for taxes payable in 1992. Increases above 5% or the CPI must be approved by the voters in a referendum.

Property Tax Revenue: Revenue from a tax levied on the equalized assessed value of real property.

Proprietary Fund Types: The classification used to account for a District’s ongoing organizations and activities similar to those often found in the private sector (i.e., enterprise and internal services funds). All assets, liabilities, equities, revenues, expenses and transfers relating to the government’s business and quasi-business activities are accounted for through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination of net income, financial position and changes in financial position. However, where the GASB has issued pronouncements applicable to those entities and activities, they should be guided by these pronouncements.

Public Act 87-17: The Property Tax Extension Limitation Law that imposed tax caps in Illinois counties, non-home rule municipalities, and special districts such as park and school districts.

Public Hearing: The portions of open meetings held to present evidence and provide information on both sides of an issue.

Prior Year’s EAV: Equalized Assessed Valuation for the year prior to the year of the levy.

191 2018 BUDGET: GLOSSARY

Recreation Fund: Is used for establishing and accounting recreational programs such as sports and fitness, visual and performing arts, youth and adult general interest, camps, teens, preschoolers, seniors and aquatics (excluding enterprise fund programs).

Reserved Fund Balance: The fund balance that is not available for appropriation or is legally segregated for a special future use.

Revenue: Funds that the government receives or earns. Examples of revenue sources include taxes, sponsorships, advertising, program fees, receipts from other governments, grants, shared revenues and interest income.

Revenue Bonds: Bonds whose principal and interest are payable exclusively from a revenue source pledged as the payment source before issuance, typically net income derived from the operation of the project or projects they finance.

Revenue Estimate: A formal estimate of how much revenue will be earned from a specific revenue source for some future period, typically, a future fiscal year.

Salaries and Benefits: The amount budgeted and appropriated for salaries, wages, health premiums, and fringe benefits.

Services: See Contractual Services.

Source of Revenue: Revenues are classified according to their source or point of origin (see Revenue).

Special Recreation Fund: Is used to account for recreational programs and inclusionary services for Elmhurst residents with disabilities. This fund also includes membership in Gateway Special Recreation Association and improvements listed in the District’s Americans with Disabilities Act (ADA) transition plan.

Special Revenue Funds: A fund used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts or for major capital projects) that are legally restricted to expenditures for specific purposes.

Strategic Plan: Long-range planning tool updated every three years and developed through a community planning process. It provides direction regarding the agency’s main focus and activities.

Strategic Themes: Broad brushed macro-oriented organizational sense of direction that provide direction for addressing the future vision of an organization.

Strategic Work Plan: The action plan for implementing strategy with timelines and the positions/Departments responsible for implementation.

Supplemental Appropriations: Appropriations made by the Board of Commissioners, after an initial appropriation, to permit expenditures beyond the original estimates.

Supplies: The amount budgeted and appropriated for departmental and functional operating supplies. This includes office supplies, building, ground, equipment and vehicle maintenance supplies and other operating supplies.

Tactics: Tactics detail the steps necessary to complete Strategic Themes and Goals in the Strategic Work Plan. 192

2018 BUDGET: GLOSSARY

Tax Base: The total value of all taxable real and personal property in the District as of January 1 of each year. The tax base represents net value after all exemptions.

Tax Caps: An abbreviated way of referring to the tax increase limitations imposed by the Property Tax Extension Limitation Law (P. A. 87-17).

Tax Levy: The total amount to be raised by general property taxes for operating and debt service purposes.

Tax Rate: The amount of a tax stated in terms of a percentage of the tax base.

Tax Rate Limit: The maximum tax rate that a county clerk can extend for a particular levy. Not all tax levies have a tax rate limit. Some levies are unlimited as to rate.

Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. The term does not include charges for services rendered only to those paying such charges such as membership charges.

Transmittal Letter: The opening section of the budget which provides the Board of Park Commissioners and the public with a general summary of the most important aspects of the budget and the views and recommendations of the Executive Director.

Truth in Taxation Act: Provides taxpayers with the means to check and review local government spending. It requires the District Board to publish a notice and hold a public hearing on their intention to adopt a levy exceeding the property taxes extended for the previous year by more than five percent.

Unreserved Fund Balance: In a governmental or private-purpose trust fund, the balance of net financial resources that are expendable or available for appropriation.

User Fees: The payment of a fee for direct receipt of a public service by the party benefiting from the service.

Vision: The desired future of the organization.

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