FUND BALANCE The District places a strong emphasis on managing and maintaining a strong financial condition. Having healthy reserves allows the District to weather a downturn in the economy without sacrificing a decline in the level of service delivery or service quality to our residents. In addition, it is vital to the District to maintain its Aaa bond rating in the investment community. The District has maintained its Aaa rating since 2008, remaining fiscally strong through many challenging economic cycles and events. The following chart details the District’s fund balances for the years ending 2020 through 2024 (estimates given for 2023 and 2024) and the recommended balance amount in reserves (where applicable). These recommendations were created jointly with the District’s financial auditor and have been incorporated within the District’s Fund Balance Policy (see the following page for details on the general operating and recreation fund reserves). DISTRICT FUND BALANCES 2020 2021 2022 Projected 2023 Budget 2024 Recommended Balance Variance General $4,257,807 $4,257,807 $4,257,810 $4,257,810 4,257,810 $3,870,456 $387,355 Capital 17,286,946 19,811,470 16,672,617 15,811,922 11,951,624 N/A N/A Liability 436,546 477,603 415,259 406,596 439,216 416,858 22,358 Recreation 3,546,622 3,546,622 3,846,622 3,846,622 3,846,622 4,552,420 (705,798) Debt Service 1,884,933 2,388,639 2,429,390 2,502,148 2,533,133 N/A N/A Cash-in-Lieu 2,446,726 4,701,082 4,860,023 5,023,726 5,201,626 N/A N/A FICA 724,917 509,795 541,400 537,000 616,600 609,000 7,600 IMRF 448,343 371,134 346,317 279,143 376,243 362,000 14,243 Audit 23,150 18,349 14,365 10,574 11,914 10,980 934 WDSRA 30,000 30,000 30,000 30,000 30,000 N/A N/A Golf 842,081 842,081 842,081 842,081 842,081 957,735 (115,654) Total $31,928,071 $36,954,582 $34,255,884 $33,547,622 $30,106,869
General Fund Reserve – In 2024, the recommended reserve balance is 6 months of average operating expenditures and an additional $705,800 that can go towards the Recreation Fund reserve to reach 3 months on a budgetary basis. Capital Fund Reserve – As noted in previous budget discussions, the amount in reserve for capital projects varies widely based on the projects slated for the year, the funding sources, and the timing of construction. Since 2022, the District’s capital spending has focused on taking care of what we have. In 2021, Wolf’s Crossing
Community Park was the last major new park development completed. The spending of capital funds on hand in 2024 is a planned drawdown, and once again, the District will be focused on taking care of our numerous parks and facilities. Recreation Fund Reserve –The fund balance policy goal is 2-3 months of average operating expenses. The recommended balance shown in the chart above equals 3 months of average operating expenses. Although the reserve falls short in 2024 by $705,800 on a budgetary basis, it is still within the 2–3-month reserve policy range.
Cash-in-Lieu funds, unlike General Fund reserves, are not property tax dollars, but rather impact fees or developer donations received over recent years. Golf Fund Reserve – The Golf Fund Reserve policy reflects a goal of 2-3 months of average operating expenditures. Similar to the Recreation Fund, the reserve falls short of the 3-month reserve by $115,700 on a budgetary basis but is still within the 2-3 month reserve policy range. The Liability, FICA, IMRF and Audit Funds all have a 3-6-month average operating expense reserve requirement.
2024 BUDGET 24
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