■ 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 2022 through 2026 (estimates given for 2025 and 2026) 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 2022 2023 2024 Projected 2025 Budget 2026 Recommended Balance Variance General $4,257,810 $4,257,810 $4,257,810 $4,257,810 4,257,810 $4,396,280 ($138,470) Capital 16,673,617 17,997,628 18,698,342 18,225,499 14,623,185 N/A N/A Liability 415,259 418,035 500,436 472,922 524,153 494,072 30,082 Recreation 3,846,622 4,146,622 4,303,857 4,303,857 4,303,857 4,965,024 (661,167) Debt Service 2,429,390 2,506,498 2,485,614 2,565,852 2,661,722 N/A N/A Cash-in-Lieu 4,860,023 7,771,862 8,700,910 9,375,145 9,653,645 N/A N/A FICA 541,400 577,889 688,015 672,422 691,501 671,411 20,091 IMRF 346,317 317,003 409,844 446,232 439,116 432,366 6,750 Audit 14,365 10,514 16,101 22,301 22,631 12,785 9,846 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 1,087,213 (245,132) Total $34,256,884 $38,875,942 $40,933,010 $41,214,121 $38,049,701 General Fund Reserve – For 2026, the General
care of what we have. The last major new park development was Wolf’s Crossing Community Park in 2021. The spending of capital funds on hand in 2026 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 2026 by $661,200 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 $245,200 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.
Fund reserve is recommended to maintain a balance equal to six months of budgeted operating expenditures, along with an additional $906,400 to ensure that the Recreation Fund and Golf Fund reserves each reach three months of operating expenditures 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
2026 BUDGET 24
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