FINANCIALS Naperville Park District continues to maintain healthy finances by managing public dollars much like a household would do: earning enough money to provide for current expenses, investing wisely and saving for future needs. In this section we explain the tools the District uses to ensure good financial stewardship that enables the District to rebuild programs and services that were impacted by the COVID-19 pandemic.
PLANNING From its early years, Naperville Park District has operated from planning documents. The Master Plan provides guidance for long-term decision-making regarding open space and recreation. The Master Plan is based on the District’s mission, vision and core values, is guided by community feedback and reviewed at least every five years. The District’s Strategic Plan is updated approximately every three years, generating more specific goals for the District based on the Master Plan. From these two planning documents, the District creates a 3-Year Financial Plan, a Non-Tax Revenue Plan, a 10-Year Capital Plan and finally, an Annual Budget. These plans allow the District to understand long-term needs and obligations so that it can plan for their impacts, while providing flexibility to respond to newly developing community needs and opportunities. ANNUAL COMPREHENSIVE FINANCIAL REPORT State law and local ordinance require the District to compile a set of financial statements within six months of the end of the fiscal year, which runs from January 1 through December 31. The report is a detailed statement of the financial status of the District, audited by a licensed, certified public accounting firm. Copies of the District’s current and past reports are posted at www. napervilleparks.org/acfrbudgettreasurersreport. The District has received the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association (GFOA) for its Annual Comprehensive Financial Report since 1991.
FUND BALANCE Maintaining an adequate fund balance is important because it provides a safety net, like a savings account, in the event of unforeseen circumstances, enabling the District to continue to operate even in the face of an unexpected emergency. Fund balance is a critical factor that bond rating agencies consider when evaluating the District’s finances and assigning a credit rating. The District began the 2022 budget year with healthy reserves that enabled the District to continue providing essential services to the community while rebuilding from the impacts of the pandemic. Both outdoor and indoor programs rebounded quickly exceeding 2019 participant levels. At the end of the 2022 fiscal year, governmental funds reported a combined ending fund balance of $34.3 million, decreasing $2.7 million compared to last year’s balance of $37.0 million. The General Fund had a planned decrease in fund balance of $3.1 million based on the capital projects completed in 2022. In addition, the General Fund transferred $16.7 million out to set up a separate Capital Projects Fund. In prior years, funding for the District’s capital improvements were included as a department within the General Fund. INVESTMENTS Investments make up a small portion of the District’s income, but help maximize funds for future use. According to the District’s investment policies, “the primary objectives of investment activities, in priority order, shall be safety, liquidity, and yield.”
NAPERVILLE PARK DISTRICT 2022 ANNUAL REPORT | napervilleparks.org 12
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