2015 Budget

Elk Grove Park District 2015 Budget The operating tax levy is calculated at a 1.43% increase with an overall levy increase of 0.54%. Under the Property Tax Extension Limitation Law, the Consumer Price Index for the 2014 levy is 1.5%. Revenue is budgeted 4% more than 2014 projections and staying consistent with the 2014 budget. The major increases from the 2015 budget to 2014 projections are in Fees & Admissions, Bond Proceeds, and Program Fees. Fees & Admissions are increasing in three areas, PAC, RBF, and Fitness Center. The Pavilion Aquatics Center revenue is increasing due to being open for a full year in 2015, versus a partial year in 2014. In addition, in 2014, pool pass sales increased over the previous month and we expect the trend to continue into 2015. Rainbow Falls Fees & Admission is based on an average weather year. Unfortunately, the last two years the weather has negatively affected revenue. Fitness Center Fees & Admission is based on a slight increase in memberships and receiving the full amount of the increase that was approved for 2014. Over the last couple of years, the District has issued $1,500,000 to $1,700,000 in bonds for capital projects. In 2015, the District is planning to issue $2,000,000 in bonds for capital projects. All Program areas are budgeting for an increase over 2014 projections. The two largest increases are in Aquatics and Athletics. Aquatics program revenue is increasing due to being open for a full year and participation has steadily increased throughout the year. Athletics is budgeting to get back to the pre-2014 revenue numbers as they expect increases in Softball and Basketball Leagues along with All Star Sports revenue. Property Taxes are comprised of our regular levied taxes, replacement taxes, and prior year taxes. Property taxes are budgeted to remain consistent with the 2014 projections but decrease from 2014 budget. The Corporate Fund is projected to be at its tax rate ceiling in 2015 and will receive less tax dollars than in 2014. The District as a whole did not lose any tax revenue as the dollars were shifted to the Recreation Fund. Due to a full year of operations of the Pavilion Aquatic Center, they will increase Rental Income, Fees and Admissions, and Program Fees by approximately $100,000 compared to 2014 projections. In the Enterprise Fund, the newly renovated Golf Course will have its second full year of operations since 2010. Revenue is budgeted to increase approximately $84,000 from 2014 projections. With a new golf league and improved playability Green Fees and Cart Rental are budgeted to increase $60,000 from 2014 projections.

Miscellaneous includes $42,000 from video gaming revenue at Fox Run Golf Course. Expenditures have a variance between 2015 budget and 2014 projections of 8% and 5% over 2014 budget. The difference between 2015 budget and 2014 budget is due to increased capital expenditures in 2015. Please see the list below for the large capital items in 2015 or the “Capital” tab for the complete list. Capital expenditures are also budgeted to increase 40% from 2014 projections. Debt is decreasing 2% from 2014 projections and budget. Wages are increasing from 2014 projections and but decreasing from 2014 budget. Wages are increasing over projections due to a full year of operations at the newly re-opened Pavilion Aquatics Center, filling open positions, and a 3% merit pool. Wages are decreasing 1% from 2014 budget due the elimination of part-time positions in the Corporate Fund. Benefits are increasing from both 2014 projections and budget because of a 15% increase in health insurance cost. Contractual Services are increasing from 2014 projections due to the outsourcing of web development and the mowing of smaller parks. Utilities are increasing 2% from the 2014 projections due to increases in water and electrical rates however, to help offset the increase, natural gas rates are expected to decrease. Program expenses are anticipated to increase with the increase in Program revenue. The 2015 Budget has $3,031,435 in capital projects. The larger projects consist of playground renovations at Audubon Park; Al Hattendorf Community Center roof replacement; RBF piping repairs; Pavilion electronic sign; Community Athletic Fields A&E fees; Pavilion interior improvements; Pirates’ Cove ride; Network Infrastructure upgrades; Golf equipment; and vehicle, mower, and equipment replacements. Golf Capital Projects total $131,729, which is budgeted within the Golf Fund and is not part of the $3,031,435 listed above due to the Golf Fund being an Enterprise Fund. Please see the “Capital” tab for a listing of all capital projects. The District’s projected fund balance at the end of 2015 is anticipated to increase to 50% of estimated 2014 expenditures. All funds except the Golf Fund are projected to reach or exceed the fund balance policy at the end of 2015. Moody’s rated the District in 2013, and due to our great financial condition; we are able to maintain the Aaa rating!

GOALS 

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2015 Elk Grove Park District Financial Goals  

Be responsible stewards of public funds and assets.  Review internal financial processes   

o Conduct random audits of internal purchasing processes ‐ Finance 

Review the results with the department Director and Superintendent 

Determine course of action  

o Research process for time off requests – Payroll  

o Increase untapped rental opportunities – Fox Run 

Utilize the Driving Range as a potential corporate rental site 

Market the Banquet room to local businesses as a potential mid‐week rental opportunity 

Tie into Banquet room marketing to bring in additional golf outing business o Utilize Fox Den as a Sports bar and “Destination Opportunity” 

Promote wintertime drink and food specials to increase bar business in connection with local sporting events 

Coordinate gaming promotions as an additional amenity offered in the off season 

 ○ Regularly assess department financials  ‐ Arts & Special Events 

Review monthly income statements and note variances in a monthly report ○ Maintain accurate records of department spending  

Copy receipts and attach to purchase orders for personal records 

○ Investigate the reimbursement policy for group exercise, personal training and Pilates/yoga CEC classes ‐ Fitness 

Reimbursement will be determined by the number of classes taught ○ Track group exercise/TRX and Yoga/Pilates usage on a regular basis to ensure “patron 

numbers” are not below the minimum for a long period of time  

Change format and/or remove class altogether ○ Implement an EFT option for personal training  

Research other private and public sectors who offer EFT programs to their clients  

Meet with our Finance Department to ensure we follow all policies & procedures; adjust the EFT program to fit our culture at the Elk Grove Park District 

○ Partner with Historical Society to execute fundraising projects that will not only raise 

funds but also awareness ‐ Museum  

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Encourage Fiscal Responsibility ‐ Business Services o Continue to use Asset Management tools to determine total ownership – IT 

 o Increase revenue at Garden Terrace – Garden Terrace 

Track sales calls 

Review the results and determine the course of action  Review and update future debt structure plan ‐ Business Services 

o Develop a financing strategy for future capital projects ‐ Finance  Review dollar allocations to various departments on a monthly basis ‐ Marketing  Develop a process to review ROI for marketing advertising to the various departments – Marketing  Increase sponsorship/partnership dollars throughout the year – Marketing  Continue to review and improve maintenance procedures / processes – Parks and Planning 

o Investigate park inspection software to streamline park, facility, and safety inspections. o Review previous and current work orders o Identify work completed on a continual basis (year after year) and adjust to become 

preventive maintenance i.e. outdoor pool winterization o Research applicable Grant opportunities  o Identify and create lighting improvements plan to replace existing lighting with energy 

efficient solution o Outsource a percentage of mowing in the parks 

 Meet individual program and facility financial goals while keeping the Leisure Service fund balance at or above 25% ‐ Leisure Services 

o Review processes to reduce inefficiencies – Active Adult / Hattendorf / Skate Park 

Increase the breakfast with Bunny and breakfast with Santa due to increase in food cost 

Implement new rental fees at Hattendorf that include set up and take downs 

Adult Center 3%  

Hattendorf ($380,000) 

Skate Park ($10,000) 

Structure the staff for rentals to eliminate extra crew for set up and take down 

Continue to ensure the Church rental continues in 2015 

Use volunteers at Adult Center whenever possible  

Utilize volunteers for special events 

Volunteers at the Center are being utilized to assist with decorating the Center, organizing storage areas and other tasks that were mainly done by staff 

Volunteers are being utilized for events i.e. Breakfast with Santa & Bunny, Dance Recital, etc. 

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 ○ Continue to provide cultural and artistic programming opportunities for children, youth 

and adults that meet the needs of the Elk Grove Park District residents while maintaining an overall contribution margin of 40% and net revenue of $42,000 – Arts & Special Events 

Slightly increase programming fees where necessary to reflect staff raises (3%) and the increase in supply costs 

Effectively utilize resources including staff time, supplies and community opportunities  

Maintain strong non‐resident enrollment that allows programs to run (where an otherwise resident‐only enrollment would not provide a large enough minimum)   

○ Continue to provide free or low‐cost events to the community while trying to break even   

Make connections with local businesses and garner sponsorship support for those events that do not bring in any revenue (i.e. Celebration of Cultures, Art in the Park, Summer Block Party, Summer Concert Series, etc.) 

 ○ Meet or exceed budgeted net percentage (43% ) – Early Childhood 

Complete variance reports on a monthly basis  

○ Maintain Youth Department contributions through the 2015 Budget Year – Youth Department 

Monitor registrations and incoming revenue and adjust expenses as needed in order to stay within the contribution margin and minimum net amounts 

 ○ Implement Gorilla Marketing tactics to increase fitness membership and promotions 

awareness ‐ Fitness 

Utilize floor graphics, mirror clings, mounted foam boards on railings, printed vinyl hanging from ceiling, printed vinyl on back of computer, etc.   

○ Investigate new Open Gym Programming  

Track low usage numbers at specific times/days; replace with new program or cut expense of staffing.  New program ideas include whiffle ball, Pickleball at night, host a tournament, etc. 

○ Continue to implement new/unique wellness programs throughout facility  

Youth – we are working with other teams in the area; offering those teams sports specific training to meet their needs (i.e. aquatics, baseball, hockey, soccer, etc.) 

Adults – Continue to bring in unique events and or programs to enhance our profit centers  Pilates Reformer coupled with the Power Plate piece; neurologist’s 

offices and Alexian Brothers Medical Center will be a big part of this enhancement.   

Indoor marathon event, Barre classes, Zumba Gold, etc.  

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Active Adults – implement programs at Hattendorf (new class on Saturdays)   Implement a special class in the morning to our Silver Sneaker Members 

 ○ Improve amount of participants in scout programs by 5% ‐ Museum 

Attend Vista 6 Girl Scout meetings 

Attend Boy Scout council meetings  

Feature discount programs to accompany the music exhibit for both Girl and Boy Scouts  

Offer a Boy Scout Birthday Bash on February 7th to celebrate the anniversary of Boy Scouts of the USA  

Offer a Girl Scout Birthday Bash on March 12th to celebrate the 103rd anniversary of Girl Scouts of the USA  

Implement at least 8 cookie workshops for Girl Scouts at the Al Hattendorf Center  

○ Increase school group visits by 10%  

Continue to promote and market school programs alongside new museum brochure  

○ Improve programming for early childhood ages (2‐5 years old) 

Develop and implement new program series, Little Elks  

Offer weekly drop‐in programs, Mini Musician, to accompany music exhibit  ○ Host at least two birthday parties  

Distribute 10% party rental coupons at Girl Scout Vista meetings  

Place marketing materials at Pirate’s Cove and the Pavilion  

Include list of specific game and craft options on website  ○ Increase Historical Society membership by 5% 

Recruit three student volunteers to purchase membership  

Recruit five new family memberships by promoting at drop‐in programs and Little Elks program  

○ Continue to seek alternative resources for funding  

Solicit funding from the Jarosch Bakery to support music exhibit  

Solicit funding from Guitar Center to support opening reception music program  

Apply for NEH Preservation Grant for Small Museums to assist with conservation materials and storage  

Approach Divine Signs for in‐kind support in fabricating graphics for the music exhibit  

Solicit funding assistance from the Historical Society for museum programs and events  

Research crowd‐funding as an option for funding a large project (on‐going)      

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○ To meet the District revenue (net and contribution) goals for Pirates’ Cove – Pirates’ Cove 

Based on customer surveys make schedule changes to PJ’s Crazy Camp 

Continue to monitor staff expenses closely and send staff home when attendance numbers are low  

Create and offer a Jumps ‘n Jiggles combination pass or discounted return voucher to sell at Pirates’ Cove 

Work with the Marketing Department to plan some a mid‐season marketing push to increase attendance numbers and make sure that target revenue numbers are met  

Develop a marketing plan/sale for VIP passes (similar to early bird pool pass sales) 

Continue to work with Radio Disney or some other similar venue to help promote Pirates’ Cove and make sure target revenue numbers are met   

Continue to look at merchandise products and purchase supplies and materials in bulk 

Continue to purchase materials only as needed.  Continue to borrow supplies from other departments (Special Events/Camp) to make PC events successful   

Continue to promote and sell birthday party packages and party amenities  

Continue to send out information about camp field trips and follow up with camps that book each season    

○ Increase revenue of the Carousel and the Rental Department ‐ Rentals 

Investigate options to change up our carousel goodie bag option 

Research available gym rental space and work with fitness, athletics and marketing to put together a marketing plan to sell more rentals 

Continue to research additional rental opportunities and benchmark similar rentals at other park districts and investigate offering them at Elk Grove Park District 

Enhance the Carousel special events by providing more activities   

Maintain Recreational Fund Balance at 30% or higher – Leisure Services ○ Monitor the budgetary plan that does not include dipping into the fund balance but 

rather contribute to the bottom line ‐ Athletics 

Develop and implement a budgetary plan developed in the fall for the following year 

Ensure the budget plan contributes the pre‐established goals of the Management Team 

Monitor all Athletic budgets on a monthly basis to make sure all classes/leagues are on the right track and adjusting those that are not 

Review and add new programs for all Athletics for the 2015     

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Maintain an average of 30‐32% contribution rate for total programs – Leisure Services     ○ Review and revise Adult Leagues ‐ Athletics 

Research local park districts/private organizations to compare pricing structures and develop competitive pricing for 2015 

○ Develop new Athletic Leagues ○ Develop new Athletic classes ○ Offer new “contractual classes” to increase customer satisfaction and participation  

S.W.O.T. Analysis helped me gain accurate information about competitive athletic organizations within the area 

En route to rejuvenating the Athletics area with new classes/leagues   Continue to seek alternative resources for funding ‐ Athletics 

○ Develop new Adult leagues  

Plan new leagues for 2014‐15 

Indoor volleyball & outdoor Basketball 

Develop a marketing plan 

Create and follow budget plan  Looking to implement a new men’s summer basketball league outdoors at Mead 

Park in the summer of 2015  Establish standards for environmental stewardship – Active Adult 

o Continue to work with Earth Team to develop ideas for ways to be environmentally conscious 

Eliminate the use of Styrofoam at the Hattendorf especially the Adult Center 

Work with the Parks Department to implement suggestions from energy audit.  

Work with Planning and Facility Maintenance staff to investigate hallway de‐lamping options and implement for Hattendorf 

Work with Facility Maintenance staff to reuse lumber and materials at Audubon Skate Park when possible 

Turn off lights that are not being used and reduce the lights in occupied rooms as much as possible 

Provide a safe and healthy environment.  Review safe practices and measurements ‐ Business Services 

o Track severity vs. frequency of safety incidences ‐ Safety 

Identify trends of accidents/incidents  

Adjust training based upon the trends  

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Cultivate an environment that fosters employee development and growth.  Continue to provide training that motivate and aligns employees with District values ‐ Business Services 

o Provide opportunities for education and training – HR  

o Identify positions or new employees to receive detailed administrative and/or finance training ‐ Finance 

Develop a “financial training program” to review internal processes  

Provide exceptional programs, services, parks, and facilities.  

o Continue to promote Junior Golf to attract new golfers to Fox Run – Fox Run 

Aggressively market the new “Junior Course” as a way to attract new kids to the game and to Fox Run. 

Continue work with IJGA trying to secure a second or potentially third event for 2015 

Continue to develop Junior Lessons, Junior League, and Junior Club Championship 

o Golf Course Conditioning 

Continue to improve Golf Course conditioning with a focus on our golfers experience and let the Course conditions be a word of mouth marketing tool. 

Continue the topdressing program started in 2014 to aggressively combat the organic matter build‐up in the Golf Course greens. 

Work to incrementally lower height‐of‐cut on the Golf Course’s fairways to add more definition between rough and fairways and increase ball roll distance. 

Aggressively work to establish grass in renovation/construction areas to bring the Golf Course renovation project to a close 

Facilitate collaboration among organizations.  

Develop new and nurture existing partnerships and relationships ‐ Leisure Services o Develop new sponsorships ‐ Active Adult 

For monthly luncheons, bingo, current events      

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Work with other professional organizations in providing enhanced programs, facilities, and services – Arts and Special Events 

○ Continue to build and foster relationships with other local park districts (i.e. Bartlett Park District, Des Plaines Park District, etc.) to enhance the recreational experience for participants and to keep down the cost of programs  

Borrow costumes and props for winter theatre production and 4‐Week Theatre Camps  

Cross‐promote with other affiliated artists associations and guilds to gain additional exposure and recruit new participants in community arts events   

○ Continue to work with the Village to have special guests come to the Carousel for open hours ‐ Rentals 

Invite the Police department to come to the Carousel to give an Office Friendly presentation 

Invite the Library to come to the Carousel for a Story Hour.  Possibly cross‐market at each facility 

Invite the Fire Department to come to the Carousel for a Fire Safety Presentation 

Delivering Community Leadership  To show leadership in benefitting our District, our community, and ourselves 

○ Assist the Elk Grove Parks Foundation in creating awareness and collecting funds for its scholarship program – Arts and Special Events 

Develop opportunities to raise money for the Foundation at Park District special events (i.e. silent auction at Art in the Park, ticket fundraiser at Halloween Fest, etc.) 

Oversee at least one Foundation event (i.e. Canvas & Cocktails)   

CORPORATE  FUND 

Corporate Fund

The Corporate Fund has a budgeted net loss of $146,657 due to the reduction of Property Tax revenue, caused by the drop in EAV over the last five years and projected EAV drop of 2% for 2015. The loss will decrease the fund balance to $5,687,582, which is 97% of non-capital expenditures. The Land Acquisition & Capital account is projected to decrease to approximately $2,743,334 at the end of 2015 due to the budgeted new loss amount shown above.

The 2015 revenue budget is decreasing from the 2014 budget and projections. This is based on a 98% collection rate of the tax levy. The 2015 Property Tax budget is decreasing 3% from 2014 projections and 10% from 2014 budget. The decrease is due to the Corporate Fund hitting the tax rate ceiling. Replacement taxes are consistent with 2014 projections but slightly higher than 2014 budget, as we have seen a slight increase in this revenue. Interest Income is increasing slightly compared to 2014 projections and budget, but still off drastically from 2010 actual. Miscellaneous budget for 2015 is increasing over the 2014 budget and projections due to increases in the P-card rebate, insurance reimbursement, and TIF rebate.

Expenditures are expected to increase $92,377 from 2014 projections and decrease $693,744 from the 2014 budget. The vast majority of the decrease from budget to budget is due to the completion of the Capital projects for the Pavilion Aquatics Center and Golf Carts purchase. Without the Capital projects, the 2015 budget would be decreasing approximately $30,000 from the 2014 budget and increasing approximately $360,000 from 2014 projections. Wages are budgeted to increase 4% over 2014 projections due to filling open positions and a budgeted 3% merit increase in wages. Benefits are increasing 20% over 2014 projections and 15% over 2014 budget, which is due to a budgeted 15% increase in medical insurance and educational training. Supplies are increasing over 2014 projections but decreasing from the 2014 budget. Supplies are budgeted with the intent of purchasing, but during the year if it is determined the item is not needed it is not purchased, therefore causing the difference between projections and budget. Contractual expenditures are increasing from 2014 budget and projections due to an increase in computer service agreements and partially outsourcing mowing, while Consultant and Legal Fees are decreasing. Debt Service in 2015 will include the Pavilion Aquatics Center debt. Insurance that was moved from the Liability Fund in 2013 includes unemployment insurance.

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Below is a list of open full-time positions in the Corporate Fund during 2014 with the approximate time the position was open and savings.

Supt. of Marketing - 13 weeks - $18,200

IT Specialist –14 weeks - $11,200

Aquatic Maintenance – 12 weeks - $9,600

Construction Specialist – 7 weeks - $4,900

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Administrative Services

Property Taxes – Is based on a 98% collection rate of the tax levy. The Corporate Tax Levy is projected to decrease approximately 2.12% from the extended tax collection in fiscal year 2014 and tax year 2013. The decrease is due to the decline in the District’s EAV over the last five years. Replacement Taxes – Is based on receipts projected to be collected in 2014 plus past history. Interest Income – Interest Income is increasing slightly from 2014 projections and budget. Current rates range from 0.20% to 0.50% for a one year or less maturity. Rental Income - Rental Income is increasing from the 2014 budget due to a rate increase per the cell tower contract. Miscellaneous Revenue - The budget is increasing from 2014 projections and budget due to a P-card rebate, insurance reimbursement, and TIF rebate increases. Other items in this category include association fees, cart lease, and other miscellaneous revenue. Salaries and Wages – This is increasing 4% over 2014 projections and a 2% increase from the 2014 budget due to staff increases of 3% and filling of open positions. Benefits – Health insurance is budgeted at a 15% increase. The large increase from 2014 projections and budget is due to moving the Director of Parks & Planning insurance to Administration from Horticulture. Contractual – This is budgeted to increase 5% over the 2014 projections and decrease 9% over 2014 budget. Increases over 2014 projections include Computer Service Agreements and Training and Development while decreases include Consultants and Legal Fees. Miscellaneous Expenses– The only item budgeted in Miscellaneous is Bank Fees. It is budgeted to remaining consistent with 2014 budget.

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Debt Service – In 2015, the Debt Service will cover the principal and interest for the Pavilion Aquatics Center project. This will be the third year of payments on a seven-year issue for the Pavilion Aquatics Center.

Marketing

The Marketing budget is found in both the Corporate and the Recreation Funds. The Corporate Fund supports the Marketing expenses for the Golf Course, along with the staff salaries and contractual services for the District. The Recreation Fund supports all programming and facility marketing initiatives, including the four seasonal brochures. Found in the 2015 Corporate Fund Marketing budget is the addition of new digital/electronic advertisement that will feature a greater presence through social media and signage to attract golf, outings, and events. New to the budget is the addition of dollars dedicated for a website development firm, as our current website is designed, operated, and maintained by one person in-house.

The Recreation Fund for 2015 reflects less print advertisement with more of an emphasis on digital/electronic advertisement. The Donation line item is budgeted to increase $21,000 over the 2014 projected budget, as the Superintendent of Marketing brings expertise to this area.

Parks and Planning

The Parks and Planning Department at the Elk Grove Park District consists of three divisions: Facility Maintenance, Grounds Maintenance, and Planning Division. The Divisions are responsible for the maintenance and improvements of park and facility areas totaling 474 acres, 42 parks, 14 buildings/facilities, 2 aquatic facilities with 8 bodies of water, 35 playgrounds, 29 soccer/football fields, 30 baseball/softball fields, 20 basketball courts, 2 inline rinks, 18 tennis courts, a children’s theme park, and an indoor skate park, along with numerous other park and facility amenities. A vehicle fleet of 35 licensed vehicles and 55 major pieces of fleet equipment is also under the direction of this Department. The Parks & Planning Department currently consists of 27 full time staff and 27 part-time and seasonal staff.                            

Inside the Numbers

6

21

20

100

60

610

375

200

24500

140

1250

625

1400

1252

35

127

2605

1885

3187

84

1055

1881

2936

87

36

28

440

85

400

45

362

18850

336

1560

475

1100

1388

8

101

2200

2400

3110

35

913

1646

2594

0 5000 10000 15000 20000 25000

Snow Accumulation (Inches)

Ice Skating (Days)

Sledding (Days)

Trees Removed

Trees Planted

Trees Pruined

Interior Paint (Gallons)

Oil Changes (Gallons)

Fuel (Gallons)

Liquid Chlorine (Gallons)

Pulsar Chlorine Tablet (Pounds)

Sodium Bisulfate (Pounds)

Athletic Field Paint (Gallons)

HVAC Filters Changed

Park Furniture Installed (Pieces)

Playground Equipment Posts Installed

Mulch Installed (Cubic Yards)

Asphalt Crack Fill (Linear Feet)

Concrete Installed (Sq.ft.)

Special Event Work Orders

Demand Maintenance (DM) Work Orders

Preventitive Maintenance (PM) Work Orders

Maintenance Work Orders

2014 Total

2013 Total

The Parks and Planning (P&P) Department is involved in providing a wide variety of general / routine maintenance repairs, renovation, and improvements throughout the Park District, utilizing an in-house skilled labor force. In addition, the P&P Department lends support to most Elk Grove Park District Capital Projects. The Department’s general goals include, but are not limited to; ensuring properly maintained parks and athletic fields; facilities and equipment; increase responsiveness; productivity; efficiency and effectiveness in a fiscally responsible manner. The majority of the Parks & Planning budget is in the Corporate Fund. The proposed 2015 budget for the Parks and Planning Department, including all Divisions plus the building maintenance for the 140 Lively Warehouse and 499 Biesterfield Administration Building, is $2,549,978. This total is an overall decrease of $93,243 (-4%) from the 2014 Budget. The P&P staff has worked hard to maintain or reduce expenses in all areas of the Department. As always, many areas of the Parks & Planning budget are estimated or projected dollars identified as necessary for maintaining the District if a need should present itself.                        

Parks & Planning 2015 Budget

Salaries & Wages, 

$1,523,032.00, 61%Benefits, $391,345.00, 15%

Supplies, $343,607.00, 13%

Contractual, $181,595.00, 7%

Utilities, $110,399.00, 4%

Salaries & Wages Salaries & Wages has a proposed budget of $1,523,032, which is approximately 61%, of the Parks & Planning Department annual budget. This is an approximate decrease of about 6% or $97,912 from the 2014 budgeted amount for Salaries and Wages. The overall decrease in salaries and wages is attributed in part to the reduction of part-time staff, hours in Grounds Division, and the $50,000 for contractual mowing services. Benefits Benefits are the second largest category at approximately $391,345 or 15% of the 2015 Department budget. It is budgeted at an overall increase of 4% or $13,743 more than the 2014 Department budget. Supplies The Supplies budget is for products, parts, and materials used by Parks & Planning staff to repair and maintain parks and facilities. It is approximately 13% of the 2015 P&P Department budget. The $343,607 budgeted in 2015 is an overall decrease of $27,341 or 7% from the 2014 Supplies budget. Staff has worked hard to identify and budget for only necessary parts and materials to maintain our parks and facilities. A number of regularly purchased products, parts, and materials had a standard increase; but staff still found ways to reduce the budget, but not diminish services. Contractual The Contractual budget primarily consists of three main areas, Waste Disposal, Equipment & Service Agreements, and Repair & Maintenance by outside contractors. In 2015, this category is only 7% or $181,595 of the overall Department budget, this is an overall increase of $23,735 or 15% from the 2014 Contractual budget. The overall increase in Contractual is attributed to the addition of contractual mowing services in the 2015 Turf Maintenance budget. Utilities The Utilities budget includes expenses related to utilities for locations such as the 140 Lively Warehouse, 499 Biesterfield Administration Building, Fountain Square Park Mechanical Building, Mead Park Shelter, Burbank Park Irrigation Building, and Community Athletic Fields. This category is 4% or $110,399 of the overall Department budget and reflects a decrease of $5,468 or 5% from the 2014 Utilities budget. The budget was prepared using current and new rates for all utilities.

AUDIT FUND 

Audit Fund The Audit Fund is used to pay for audit expenses. Our current audit agreement with Lauterbach and Amen expires after the 2014 audit. The fund balance at December 31, 2015 is projected to decrease to $9,532 due to a projected net loss of $976 during 2015. The projected fund balance is 44% of expenditures.

POLICE FUND 

Police Fund The Police Fund dollars are remaining consistent with 2014. Part-time security personnel hours are being reduced in the least busy months. However, this is partially offset by a proposed $1.00 an hour increase to security personnel, their first increase in three years. No security projects are budgeted in 2015. With the budgeted net loss of $468, the projected fund balance at December 31, 2015 will decrease to $44,021, which is 81% of expenditures.

LIABILITY FUND 

Liability Fund Property Tax revenue is budgeted to increase in anticipation of expenses increasing in 2016 & 2017. PDRMA’s insurance premium is budgeted to decrease in 2015 due to lower operating expenditures in 2013 when the Pavilion Aquatics Center (PAC) was under renovation. With PAC operating in 2014, it is projected the insurance premiums will increase in 2016. Starting in 2013, all expenditures were moved out of the Liability Fund to the Corporate Fund with the exception of insurance premiums. With a budgeted net income of $19,614, the projected fund balance at December 31, 2015 will increase to $140,855, which is 45% of expenditures.

IMRF FUND 

Illinois Municipal Retirement Fund (IMRF) The employer rate for 2015 is budgeted at 10.57% of qualified wages. This is a decrease of 3.47% from 2014. The fund balance at December 31, 2015 is projected to increase to $252,564 due to a net income of $78,273 during 2015. The projected fund balance is 48% of expenditures. IMRF has three funding sources; employee contributions, employer contributions, and investment earnings. Employee contributions have remained steady at 4.5% of wages and would take legislative approval to adjust the percentage. Investment earnings are projected at a 7.5% return and are averaged with the five most recent years. Employer contributions fluctuate each year. Generally, employer contributions increase as investment earnings decrease and vice versa. This is the second decrease in a row. See chart below. Year Employer Rate 2015 10.57% 2014 10.95% 2013 11.14% 2012 10.74% 2011 10.69% 2010 10.29% 2009 7.70% 2008 7.83% 2007 8.00% 2006 8.15% The total cost of IMRF to the Park District is $596,500 with $66,500 being paid out of the Golf Fund. The IMRF Fund paid an extra $82,000 in 2013 to reduce the unfunded pension liability. The Board approved to pay $50,000 in 2014 to reduce the unfunded pension liability.

SOCIAL SECURITY FUND 

Social Security Fund Property Tax revenue in the 2015 budget is remaining consistent with the 2014 budget. The expenditure pays for all Social Security cost for the District with the exception of the Golf Fund. With a net income of $20,060, the projected fund balance at December 31, 2015 will increase to $186,006, which is 36% of expenditures.

RECREATION FUND 

Recreation Fund   

The 2015 Recreation Fund budgeted net income of $54,740 is a decrease from the 2014 budget and projections. Two items that have a large impact on the bottom line include adding $288,000 for capital projects, which include the painting and re-piping of the Rainbow Falls Funhouse, and a large increase in property tax revenue. Due to the Corporate Fund projected to be at its tax rate ceiling, property tax revenue will be levied in the Recreation Fund versus the Corporate Fund to maximize tax dollars. Revenue is also budgeted to increase in rental income and program fees. Expenses are increasing in the following categories of the budget: Wages, Benefits, Supplies, Contractual, Utilities, Capital Projects, and Program Expenses. The 2014 projections reveal a profit of $115,000, which is less than budget due to numerous factors, which include lower revenue in Fees and Admissions, and Rental Income, lower sales and less revenue in Program Fees. However, many of our expenses in 2014 were lower, including Wages, Benefits, Supplies, Contractual, and Program Expenses. However, we have seen a significant increase in the expense for Utilities. From the 2014 budget to 2014 projections, we have seen an 11% increase, therefore, for 2015 we are budgeting a 2% increase in Utilities. Total Revenue In 2015, total revenue is increasing approximately 5% over 2014 budget and 10% over 2014 projections. Property Tax revenue will increase and interest income will show a slight increase from 2014. Other revenue streams that will increase from 2014 budget include Rental Income, Grants and Donations, Miscellaneous Income, and Program Fees. Arts, Early Childhood, Before School and After School, Dance, and Aquatic programming also contribute to this increase. Pirates’ Cove had another tremendous year in 2014. Hopefully, the weather will cooperate in 2015 for both Rainbow Falls and Pirates’ Cove. Membership and facility fees were not raised this year. However, our 2014 increase for Carousel parties will take effect in 2015 as party renter’s book a year in advance. Our other program fees remain extremely reasonable for the value of our services. Interest Income Interest income in 2015 is increasing 38% from 2014 budget and 2014 projections, due to available funds. This increase is the first in several years. From 2009 to 2014, there has been a substantial loss of revenue due to falling interest rates and/or available funds.

Rental Income Rental income encompasses our parties and rentals in our facilities. In 2015, we are budgeting an 8% increase over 2014 budget and 11% over 2014 projections. Fees and Admissions As stated above, we are not raising any membership prices in 2015. The Pavilion Aquatic Center opened in February 2014. At that time, there was a 50% increase in fees to this facility as well as a 10% increase in Fitness Center memberships. Although a normal three-year increase was scheduled to occur in with Adult Center memberships in 2015, a decision was made not to raise the membership rate. Program Fees Similar to years past, our program fees in 2015continue to be very reasonable if not lower than many of our competitors, especially private industries. The number of participants or households fluctuates between different program areas. Areas that have seen high enrollments are Early Childhood, Theater, Kids Club, and Aquatic programs. Dance is beginning to make a comeback, most notably in our younger dancers. Again, we pride ourselves in offering high quality programs and services to meet our community needs. Several of our community-wide special events remain free, and we truly enjoy giving back to the Elk Grove community. For 2015, Program Fee revenue is increasing 2.7% from 2014 budget, and 9% from 2014 projections. Total Expenditures Total Expenditures in 2015 are budgeted to increase approximately 9% over 2014 budget and 11% over 2014 projections. A large part of the increase is due to the additional $288,000 for Capital Projects. Salaries and Wages, Benefits, Contractual, Utilities, and Program Expenses are higher compared to the 2014 budget. Compared to the 2014 projections, all expense items are higher in the 2015 budget, with the exception of Supplies Salaries and Wages In 2015, Salaries and Wages are increasing 3% over 2014 budget and 5% over 2014 projections. We are budgeting for an increase in minimum wage at $9.00 an hour instead of $8.25 for new employees. Included in the 2015 budget is a 3% merit increase for both full and part time staff.

There have been no vacancies in full time positions in 2014, although we did have openings in part time positions, which created more overtime work for full time positions. Benefits Benefits are budgeted to increase 10% over 2014 budget and 14% over the 2014 projections. This increase is due to a budgeted increase in medical insurance. Supplies Supply costs for 2015 are budgeted to stay nearly the same as the 2014 budget, but an increase of 6% over 2014 projections. The supply costs include an increase in Pavilion Aquatics, Pavilion Fitness, Pavilion Rentals, and Pirates’ Cove. Contractual Contractual expenses in 2015 are increasing 5% from the 2014 budget and 7% from 2014 projections. The largest increases are in Equipment Service Agreements and Credit Card expense. Utilities Utilities are increasing 15% from 2014 budget and 2% from 2014 projections. Natural Gas is projected to decrease from 2014 projection due to favorable pricing. In 2014, prices were high due to the extremely cold winter. Electric and Water are projected to increase due to pricing. Pavilion Aquatic Center (PAC) utilities will be increasing in 2015 to reflect additional usage. In 2015, the total utility increase for PAC is about $27,000. Program Expenses As stated earlier, program expenses in the 2015 budget are increasing 4% from the 2014 budget and 13 % over 2014 projections. This is in direct relationship to program registrations. Capital Expenses New to this year’s budget is the addition of $288,000 for Rainbow Falls piping and painting of the Funhouse.

PAVING & LIGHTING FUND 

Paving and Lighting Fund Property tax revenue for 2015 was decreased to stay within the maximum tax rate due to the decrease in EAV over the last five years. Revenue growth in the next few years is projected to be flat; however, the fund is in good shape due to the fund balance. With the net loss of $16,663, the projected fund balance at December 31, 2015 will be reduced to $112,301, which is 128% of expenditures. Please see the last page in this section to review all the Paving and Lighting projects.

MUSEUM FUND 

Museum Fund Budgeted revenue in 2015 is remaining consistent with the 2014 budget. Donations and Grants are budgeted to increase due to a large donation by the Historical Society. Property Taxes are budgeted to decrease due to the large fund balance. Budgeted expenditures in 2015 are increasing from the 2014 budget due to increases in Wages because of increased part-time hours. Supplies are increasing due to a new special event (Trolley Tour). Capital projects for the Museum consist of a new shed door and schoolhouse steps, which are budgeted for in the Capital Fund. With the net loss of $6,025 the projected fund balance at December 31, 2015 will decreased to $105,877, which is 104% of expenditures.

SPECIAL RECREATION 

FUND 

Special Recreation The Special Recreation Fund consists of two types of expenditures. The larger of the two is our contribution to Northwest Special Recreation Association (NWSRA). The other expenditure is for capital items related to the American Disability Act (ADA). The majority of these items have been identified in the Master Plan as items that need attention. The fund balance at December 31, 2015 is projected to increase to $271,225 due to a projected net income of $14,986 during 2015. The projected fund balance is 72% of expenditures.

ATHLETIC ASSOCIATIONS 

BOND & INTEREST FUND 

Bond and Interest Fund Incorporated in the 2015 budget is the payment for the 2015 General Obligation Bonds and Rainbow Falls debt, which will mature in 2018. The 2013 Bond issue consisted of General Obligation Bonds and Bonds for the Pavilion Aquatics Center Project. The Pavilion Aquatics Center Bonds will be paid out of the Corporate Fund and will mature in 2019. The 2014 General Obligation Bonds were paid off in 2014. General Obligation Principal Debt Schedule

2015 2016 2015 Issue* $ 2,000,000 $ 0 * Projection

The Bond and Interest Fund is one of the funds that are not included in the fund balance policy. At the end of 2014, it is projected to have a fund balance of $101,405.

2014 CAPITAL FUND 

2015 CAPITAL FUND 

GOLF FUND 

Golf Fund  

Background The Golf Industry continued to struggle in 2014, according to information provided by the National Golf Foundation (NGF). The NGF states that the total number of golfers in the U.S. has dropped for the fifth straight year and is down from its high of 30 million participants in 2005 to its current level of 24.7 million. The NGF is predicting no increase in the total number of golfers for the coming year, and only a 1% growth rate in the number of golfers between now and 2020. Forbes recently came out with their projection that by 2016, the golf industry will realize an increase of 3.75%, although this number represents a different view than the NGF, it still does not erase the recent downturn in the industry. Golf courses over the last 10 years are fighting each other for a decreasing golf population; this has led to price discounting and the introduction of third party tee time sellers, which are driving down the average price per round.   

Operations  Fox Run has not been immune to the struggles of the industry but we have been able to maintain all of our leagues and permanent tee time members from the previous year. We were also able to pick up a new league from the Mt. Prospect closure and have an additional new league for the 2015 season. We continue to focus on the growth of the game through youth participation. Junior golf programing was up 15% from the previous year. We again hosted three high school teams, an Illinois Junior Golf Event, and the Illinois Girls Sectional Meet. No price increase is scheduled for green fees or golf cart rentals in the 2015 budget. Green fees revenue and rounds are budgeted in a manner that is consistent with the trends in the industry, and take into consideration possible closed dates due to weather and flooding. Due to these factors, the revenue number for green fees and cart rentals is approximately $75,000 less than the 2014 budget, but is more in line with actual numbers over the previous two seasons. With the lower budgeted green fees, we continue to look at payroll expenses. Starter and ranger payroll has been decreased by $6,000 from the 2014 budget and the cart attendant payroll has been decreased $3,000 from the 2014 budget.

In 2014, we saw the addition of video gaming at Fox Run with projected revenue of $33,000; in 2015, we are budgeting $42,000. The increase for 2015 is due to having gaming for a full season and increased marketing efforts during the off-season. Fox Run banquet operation continues to be consistent, but has now leveled at 2013 numbers. Revenue numbers for 2014 and budgeted numbers for 2015 will be almost identical to 2013 actual numbers. The event room continues to be booked during the peak spring and summer seasons, but sees a downturn as most event rooms do during the winter months. Staff has worked hard to communicate with past renters and outing groups, as outings continue to be a big part of our operation.  

Grounds Maintenance On the grounds maintenance end, course conditions continue to be a driving factor for retaining current customers and for attracting new players. Jeremy Duncan, Head Greenskeeper, has done a great job in his first year at providing great green conditions and has started work on improving some of the other playable areas of the course. In 2014, he worked under a budget that was supplied by the previous Superintendent, as he started in February. Jeremy was able to introduce some new maintenance practices by using the total dollars budgeted for the season. Total dollars budgeted for 2015 Grounds Maintenance is down $22,000 from total budgeted amounts in 2014, due to a decrease in part-time maintenance labor. The number for 2015 is based on actual numbers for 2014 and 2013, which took into account changes in part-time hours due to the implementation of the health care law. Two new line items added to the 2015 budget under grounds maintenance include $7,200 for a goose dog service and $8,500 for the outsourcing of fairway aerification.   

Fund Balance Policy Exception

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-VII. Exceptions to the Policy – If the Board of Park Commissioners adopts a budget that does not meet the parameters of this policy, then the budget will include a plan for adhering to this Policy within a five-year period.

The Golf Fund is projected to be approximately $820,000 below the targeted fund balance at the end of 2015 per the fund balance policy. Below is a plan to adhere to the policy within five years. The Golf Course operations have a positive cash flow but due to large capital expenditures, it is near break-even or a negative cash flow after capital expenditures. There are three possible solutions to help the cash flow:

1. Move all capital expenditures from the Golf Fund to the Capital Fund 2. Move IMRF and Social Security expenses out of the Golf Fund and

into the IMRF and Social Security Funds 3. Move the Administrative expenses out of the Golf Fund and into the

Corporate Fund.

Any of the three would provide a minimum savings of $100,000. It is expected the Golf Fund will meet the Fund Balance Policy by 2020.

CAPITAL FUND