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 2021 through 2025 (estimates given for 2024 and 2025) 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 2021 2022 2023 Projected 2024 Budget 2025 Recommended Balance Variance General $4,257,807 $4,257,810 $4,257,810 $4,257,810 4,257,810 $4,043,393 $214,417 Capital 19,811,470 17,997,628 17,997,628 17,571,648 15,263,152 N/A N/A Liability 477,603 418,035 418,035 484,551 453,576 450,322 3,254 Recreation 3,546,622 4,146,622 4,146,622 4,146,622 4,146,622 4,835,965 (689,343) Debt Service 2,388,639 2,506,498 2,506,498 2,520,826 2,583,618 N/A N/A Cash-in-Lieu 4,701,082 7,771,862 7,771,862 8,136,662 8,409,162 N/A N/A FICA 509,795 577,889 577,889 661,802 672,282 644,911 27,371 IMRF 371,134 317,003 317,003 401,725 431,002 407,562 23,440 Audit 18,349 10,514 10,514 16,145 16,725 11,310 5,415 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 1,050,328 (208,247) Total $36,954,582 $38,875,942 $38,875,942 $39,069,872 $37,106,030
General Fund Reserve – In 2025, the recommended reserve balance is 6 months of average operating expenditures and an additional $689,300 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. The last major new park
development was Wolf’s Crossing Community Park in 2021. The spending of capital funds on hand in 2025 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 2025 by $689,300 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 $208,200 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.
2025 BUDGET 24
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