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Chief Financial Officer, the General Counsel, the Comptroller, and the Director of Human Resources

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Chief Financial Officer, the General Counsel, the Comptroller, and the Director of Human Resources 2013 Chicago Park District Budget Summary To the Citizens of Chicago, It gives me great pleasure to present the Chicago Park District's 2013 budget, which features a responsible, balanced budget that increases programming at neighborhood parks, invests in children and families, and reduces a longtime structural deficit without an increase in taxes and fees for Chicago residents. The $410.9M spending plan is approximately 0.8% higher than the FY2012 budget. At the Chicago Park District, children come first. Our number one priority is to keep programs affordable and accessible to children and their families, while ensuring the financial health of the agency. Thousands of families count on park programs each day for sports, cultural and social enrichment. This budget invests in those families by increasing neighborhood programming that keeps the young people of our communities safe and engaged. The District's proposed budget does more for families, without burdening them with higher taxes and park fees. Programming and room rentals will remain flat at neighborhood parks, while program discounts continue for active duty personnel, their families and households with multiple children enrolled in Chicago Park District programs. Finally, the 2013 budget allows for a $1 million investment in summer camp scholarships for families who are most in need. In 2013, the Chicago Park District will add new programs, and expand some of its most popular ones to serve tens of thousands more children and families. This budget will also strengthen weekend family- oriented programming, and in 2013 the District will launch an expanded “Night Out in the Park” series, which will feature such popular programs as Chicago Shakespeare in the Parks, Circus in the Parks, Movies in the Parks and more. In these tight fiscal times, we must be aggressive in our pursuit of revenue. Outside of property tax levy ($261 million), the Chicago Park District's greatest revenues will come from Soldier Field, harbors, golf courses, parking and the concession program. Revenues from Soldier Field, budgeted at $29.1 million will include the highly anticipated Hockey Classic in February, the Taylor Swift concert in August, and the University of Illinois-Washington game in September. The District's sponsorship program is expected to realize an estimated $1.3 million in new revenue, while permit fees are budgeted at $9.8 million. Because of a revised deal last spring, guaranteed income from the Lollapalooza Festival alone will bring parks $2.7 million, plus millions of dollars more in amusement tax to the city and Cook County. We thank the residents of Chicago and park patrons for their contributions in shaping this budget. We know that the upcoming year will be a very exciting one. We look forward to seeing you in the parks. Sincerely, Michael P. Kelly General Superintendent & CEO Chicago Park District i 2013 Chicago Park District Budget Summary Table of Contents Organizational Chart....................................................................................................................................... 1 Economic Outlook .......................................................................................................................................... 3 2013 Total Operating Budget Summary .......................................................................................................... 4 Demographics ................................................................................................................................................ 9 Mission & Core Values.................................................................................................................................. 13 Fund Structure ............................................................................................................................................. 16 Financial Policies .......................................................................................................................................... 20 Budget Process............................................................................................................................................. 22 Fund Balance................................................................................................................................................ 24 Operating Budget – Detailed Revenue .......................................................................................................... 27 Property Tax............................................................................................................................................. 27 Personal Property Replacement Tax (PPRT) .............................................................................................. 29 Grants, Donations and Sponsorships......................................................................................................... 30 Soldier Field ............................................................................................................................................. 31 Parking Fees............................................................................................................................................. 32 Harbor Fees.............................................................................................................................................. 32 Concessions.............................................................................................................................................. 33 Dr. Martin Luther King, Jr. Park & Family Entertainment Center................................................................ 34 Golf Courses............................................................................................................................................. 34 Northerly Island Venue............................................................................................................................. 35 Program Revenue..................................................................................................................................... 35 Rentals and Permits.................................................................................................................................. 35 Operating Budget – Detailed Expenses ......................................................................................................... 37 Personnel................................................................................................................................................. 37 Debt Service............................................................................................................................................. 39 Utilities..................................................................................................................................................... 39 Remittance to Aquarium, Museum and Zoo.............................................................................................. 40 Long Term Financial Planning ....................................................................................................................... 41 Capital Improvements .................................................................................................................................. 42 Debt Administration..................................................................................................................................... 50 DEPARTMENTAL BUDGET SUMMARIES......................................................................................................... 52 Glossary ..................................................................................................................................................... 118 ii 2013 Chicago Park District Budget Summary 1 2013 BUDGET SUMMARY SECTION I BUDGET OVERVIEW CHICAGO PARK DISTRICT 2 Budget Overview Economic Outlook Fiscal year 2013 will present another step in the long road to recovery from the financial collapse caused by the recession. The national economy is likely to continue to show signs of recovery in the same measured pace that has characterized the growth experienced so far. Accompanying this slow growth is a feeling of cautious optimism as underlying uncertainty persists about such matters as the fiscal cliff, federal tax policies and the European recession. The Bureau of Labor Statistics reported total nonfarm payroll employment increased by 171,000 and the unemployment rate was 7.9% in October 2012. Both the unemployment rate at 7.9% and the number of unemployed persons at 12.3 million were essentially unchanged from a month earlier and offered little change from the 8.3% unemployment rate that started the year. Still, this is progress from the perspective that the unemployment rate was in the 10% range two years prior to this point. Overall, it is not anticipated that the national unemployment rate will return to the prerecession level of 5.8% for some time. The local economy is expected to mirror national economic trends. The State of Illinois unemployment rate is at 8.8% and the City of Chicago’s unemployment rate is at 9.4%, both of which are showing improvement. According to the Federal Reserve Beige Book for October 2012, economic activity in the Seventh District-Chicago continued to expand in late August and early September, but at a slow pace. Growth in consumer spending was little changed, while business spending increased at a slower rate. Manufacturing
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