Appendix H
3-Year Financial Plan
RECREATION FUND FORECAST
Charges for Services
The Recreation Fund primarily accounts for recreation programs, park maintenance, marketing/sponsorship, customer service, custodial, Fort Hill Activity Center, Knoch Knolls Nature Center, Carillon, Centennial Beach and Grill, and the Riverwalk Café. Over time, the District has assumed responsibility for more than 2,400 acres of land with 136 parks of varying types and sizes. Over 56,000 participants register for Naperville Park District programs each year. The net revenues from programs are designated to fund portions of the custodial, customer service and marketing budgets. While COVID has had a significant impact on District operations in the past couple of years, this plan assumes normal (pre-pandemic) participation levels. The other major operation within the recreation fund is the parks division. Costs to maintain 136 parks encompassing over 2,400 acres for park maintenance are funded through property taxes and a transfer from the General Fund. Wages and benefits comprise 68% of expenditures for the Recreation Fund. By design, the Recreation Fund has been forecasted to break even through 2024. This is accomplished through a transfer from the General Fund for a portion of the park maintenance budget. The estimated transfers for 2023 and 2024 are $2.5M and $2.2M. Charges for services (recreation program fees, fitness memberships at the Fort Hill Activity Center and Centennial Beach daily admission/seasonal passes) represent 57% of the funding for the Recreation Fund. Individual budgets are prepared on an annual basis for the core areas listed below: • Sports – Youth • Camps • Sports – Adult • Arts • Youth, Teen & Family • Early Childhood • Fort Hill Activity Center • Knoch Knolls Nature Center • Fitness/Indoor Aquatics • Active Adults/Seniors • Special Events • Trips • Riverwalk Café • Paddleboat Quarry • Centennial Beach • Centennial Grill • Garden Plots • Sportsman’s Park Recreation Fund reserves are forecasted to remain stable. As noted earlier, maintaining healthy reserves is vital to ensuring flexibility in operations and being prepared for unknown challenges all while supporting the District’s Aaa bond rating. COVID is a perfect example of an unknown challenge that significantly impacted District operations. Having strong reserves allowed the District to provide services and meet our mission even through the pandemic. The Recreation Fund’s Reserve Target is a range of 2-3 months of average operating expenses. The reserve targets noted on the following page for years 2022-2024 represent about 2.5 months of average operating expenses.
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000
2019 Actual
2020 Actual
2021 Actual
2022 Budget
2023 Forecast
2024 Forecast
Recreation - Fund Balance
1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000
0 500,000
2019 Actual
2020 Actual
2021 Actual
2022 Budget
2023 Forecast
2024 Forecast
Fund Balance
Reserve Target
The fund balance target for the Recreation Fund is equal to a range of 2-3 months of operating expenses which is consistent with the policy for the Golf Fund. Having a fund balance range allows for flexibility in any given year where the revenues may vary based upon weather conditions. From a budgetary basis, the average fund balance is about 2.5 months. On an actual basis in a typical year the actual fund balance exceeds 3 months.
Naperville Park District | 2023 MASTER PLAN 3-YEAR FINANCIAL PLAN 2022-2024 7
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