Appendix H
3-Year Financial Plan
BASELINE - 2022 BUDGET The first year of the plan is based on the District’s 2022 Budget approved on December 9, 2021. The District’s annual budget includes all operating and capital needs for the District. The philosophy of the District’s 2022 budget is based on the following objectives: • Maintain a strong financial position to ensure long term financial sustainability and to maintain the District’s Aaa rating. • Implement new recruitment and retention strategies to reduce staffing vacancies. • Maintain a motivated and loyal workforce and provide a competitive salary and benefits package. • Account for minimum wage increases and the related wage compression. • Initiate departmental budget requests that are based on specific needs, thereby allowing the District to deliver the level of excellence expected by the community. • Utilize the District’s tax levy to adequately fund operations, capital and special recreation needs. • Remain flexible and proactive to address the uncertain impacts of COVID. • Realize continuous improvement in efficiencies, practice conservative spending, perform a thorough review of line items and program fee rates. • The District’s 2022 operating budget is balanced. If the District ends 2022 in a better position than expected, any surplus funds will be used for future capital improvements.
FORECAST SUMMARY Financial forecasts are the foundation for a long-term financial plan. These forecasts provide the Board and staff with information they need to more efficiently determine future levels of service and methods of funding. This forecast of District revenues and expenditures includes Fiscal Years 2023-2024. The forecast assumptions are based on recent trends and specific expectations as follows: • The plan assumes property tax growth based on
• Develop a compensation plan based on minimum wage requirements, wage compression and market competition. • Reference and utilize past history data (3-5 year average) where possible to forecast percentage increases/decreases. • Implement capital projects for years 2023 and 2024 driven by the Naperville Park District’s Capital Projects Prioritization Policy.
CPI increases and new construction growth. • Utilize independent industry data to develop assumptions whenever possible. • Review departmental goals and budgets to determine if the 2022 budget requests will significantly change.
ASSUMPTION HIGHLIGHTS (see Addendum A for a description of Plan Assumptions) Revenues
Property taxes remain the largest funding source for the District. Charges for services (program and golf green fees) are the next largest. Projected revenues and fee increases for recreation programs are typically based on the costs to run the programs, keeping affordability and market conditions in mind. For golf operations, the major revenue engines (green fees, cart rentals, range, lessons, concession and merchandise sales) and the corresponding expenditures were adjusted to reflect the golf renovation projects at Springbrook in 2022-2023 and Naperbrook in 2024.
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