Appendix H
3-Year Financial Plan
Addendum A 3-YEAR PLAN
REVENUES 1. Taxes: 2022 Budget $25.0M
The Consumer Price Index (CPI) used to project the 2022 tax levy (2023 budget) is 5.0%; (this is the maximum CPI increase under PTELL- (actual CPI as of December 2021 was 7.0%). The CPI estimate used for the 2023 tax levy is 4.3% based on an estimate from Eric Anderson of Piper Sandler. Other estimates include an increase in Equalized Assessed Valuation of 4.0% and new construction of $50 million for each year. a. In 2023, $1.1 million in new funding is anticipated for operating expenses and capital improvements. Based on the 2023 capital plan and the related ADA qualified costs, a reduction in the special recreation levy is anticipated from 3.0-cents to 2.5-cents, a reduction in levy dollars of about $300k. The debt service levy is also anticipated to remain flat with the District funding $150k of debt service payments from capital funds. The net increase in the total tax levy is estimated $800k over the prior year levy amount. For the average homeowner, this means an estimated increase of about $5-$15 (from approximately $390 to $405). b. In 2024, new funding is estimated at $1 million for operating expenses and capital improvements. The special recreation levy is anticipated to remain at 2.5-cents. The net increase in the total tax levy is estimated to be an increase of $1.1 million over the prior year levy amount. For the average homeowner, this means an increase of about $10- $20 (from $400 to $420).
ASSUMPTIONS 2022-2024 We are pleased to present this overview of the assumptions used to create the District’s 3-Year Financial Plan 2022-2024. The 2022 approved budget serves as the basis for year one of the plan. The following is an overview of the methodologies and direction taken to create assumptions for years 2023 and 2024: • Utilize independent industry data to develop assumptions whenever possible. • Review departmental budgets to determine if the 2022 budget line items will significantly change. • Use past history (3-5 year average, not including 2020) where possible to forecast percentage increase/decrease projections. • Incorporate capital projects for years 2023 and 2024 driven by the Naperville Park District’s Capital Projects Prioritization Policy. • Increases for minimum wage, market competition and compression have been considered. • Inflationary increases for commodities and fuel are included in the plan.
ADDENDA ADDENDUM A District 3-Year Plan Assumption Summary ADDENDUM B 3-Year Capital Plan 2022-2024
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Naperville Park District | 2023 MASTER PLAN 3-YEAR FINANCIAL PLAN 2022-2024 21
NAPERVILLEPARKS.ORG
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