2013 Budget Workshop

November 15, 2012

5:00 p.m.

Our success hinges on our ability to do the following consistently and well: • Maintain our relevance as a key provider of recreation

and health and wellness solutions – This pursuit was validated by 2012 Community Interest and

Opinion feedback

– Update the 5-year Strategic Plan

• Remain reasonably priced and deliver a compelling value to residents – Hold the line on prices for the majority of our programs

– Hold all golf fees steady

The Future of the NPD

• Provide consistently great experiences to grow the District’s long-term customer base – Create and implement a District-wide customer service

initiative

• Expand our focus and increase our reach – Open the 95th Street Center to provide a south Naperville

location for indoor programs

The Future of the NPD

Our Residents Care About Value

• 140 parks encompassing over 2,500 acres

• 70 playgrounds (71st in 2013) • 60+ miles of paths and trails • 78 fields and backstops for baseball

and softball • 66 small and large multi-use fields

for soccer, football, lacrosse, and other recreational activities

• 34 tennis courts • 25 basketball courts • 2 inline hockey rinks • 2 Cricket pitches

• 1 synthetic turf field (2nd in 2013) • 3 skate facilities • 46 picnic shelters ranging in size to

accommodate large gatherings to small group activities

• Free special events • Drop-in programs for seniors • Over 1,400 programs • Centennial Beach • 2 championship, 18-hole golf courses • Community garden plots • Sportsman’s Park trapshooting range

When Money Magazine ranked Naperville the 54th best place to live in 2012, the Riverwalk and Centennial Beach rose to the top as community highlights. Here are many other recreation amenities residents get for their tax dollars:

Based on 2012 Community Interest and Opinion Survey results: • 98% residents universally aware of the NPD

• Satisfaction with facilities and programs is higher than in 2009

• Most respondents unable to cite significant unmet needs

• Disparity with residents in south Naperville citing less usage of NPD less significant than in 2009

• Four in five residents consider NPD good or excellent value

• Message of “take care of what you have” still resonates

Our Community Knows Us and Likes Us

• Redevelopment of Knoch Park celebrated with grand opening in April 2012

• Meadow Glens Park renovation project

• Three playground celebrations were held in 2012: College Park, Creekside Park (including basketball court) and Cress Creek Park

• Distinguished Accreditation initiative successfully completed

• Successful passage of the Park District Child Safety Bill

2012 Accomplishments

• Support of the Naperville Parks Foundation that has been accepting donations totaling $6,500 for much of 2012

• Development and implementation of the District’s Non-Tax Revenue Plan

• Creation and successful launch of the District’s new website, accomplished entirely with internal resources

• Rollout of the District’s rebranded materials and “Engage Your Senses” tagline

• Successful negotiation of 95th Center lease and completion of renovations

2012 Accomplishments

• Renewal of the District’s Aaa financial rating by Moody’s Investors Service

• 2010 GFOA certificate of achievement for excellence in financial reporting

• Glancer Magazine’s Readers’ Choice Awards designated Nike Sports Complex as the community’s “favorite park”

2012 Accolades

• Runner-up for the IAPD Intergovernmental Cooperation Award for our partnership with the City of Naperville and the Forest Preserve District of DuPage County in planning and constructing the West Branch Riverway Trail

• The Illinois Governor’s Sustainability Award for the District’s environmental initiatives

2012 Accolades

2013 Budget

1. Implement the 2012 Master Plan, including updating the District's 5-year Strategic Plan

2. To further solicit public input from Naperville residents throughout the year through focus groups, open houses, and electronic media

3. To implement an ongoing Information Technology Master Plan for the Naperville Park District that guides long-term spending in the area of technology

2013 Goals

4. To develop District-wide Customer Service Standards and implement through associated staff training

5. To initiate program offerings at the District’s 95th Street Center (Fry Property Building). Meet or exceed projected participation and revenue totals for the facility

6. To create a plan to build the future of golf by becoming known for youth instruction and develop a strategy for bringing in more youth participants at a younger age

7. To execute the multi-year IEPA Site Remediation Plan (SRP) and Remedial Action Plan (RAP) at Sportman’s Park

2013 Goals

8. Develop a comprehensive plan to address changing insurance costs

2013 Goals

Park District staff is responsible for maintaining good stewardship of all of our resources, including resident tax dollars • Property taxes continue to comprise about 50% of

District revenues – On a total dollar basis, proposed levy is less than amount

levied in the prior year

– EAV projected to decline 6%

– Average home for tax valuation purposes expected to decline 6% (from $325,000 to $305,500)

– Average taxes paid to Naperville Park District for 2013 is estimated at $300 which is $3 less than last year

The Dollars That Drive Our Progress

Naperville Public Library

Comm

unity College #502

Naperville Park D

istrict

City of Naperville

School District

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Naperville Tax Bill Breakdown

Equalized Assessed Value (EAV)

• EAV has decreased about 10% over the past two years and is expected to decline in 2013

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2,500,000,000

3,500,000,000

4,500,000,000

5,500,000,000

6,500,000,000

7,500,000,000

8,500,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

EAV History - Dollar and Growth Change

EAV

Growth %

Tax Rate History

0.23000.24000.25000.26000.27000.28000.29000.30000.31000.3200

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Levy Year

District's Tax Rate

As EAV declines tax rates inherently increase

2011 Tax Rate Comparison

0.0000

0.1000

0.2000

0.3000

0.4000

0.5000

0.6000

0.7000

0.8000

0.9000

Rockford Wheaton St. Charles Bolingbrook Fox Valley Lisle Oswegoland Lombard Elmhurst Downers Naperville PlainfieldTax Rates 0.8432 0.6787 0.5531 0.5249 0.4897 0.4455 0.3814 0.3760 0.3435 0.2983 0.2969 0.2126

• 2013 Consolidated Budget: – Revenues $36,941,000

– Expenditures $38,910,000

– (Deficit) ($1,969,000)

• 2013 Consolidated Operating Budget – Revenues $23,880,000

– Expenditures $23,669,000

– Surplus $211,000

2013 Consolidated Budget

Deficit based on capital program

The 2013 budget includes 50% or $40,600 of the wage adjustments based on the compensation study

Consolidated Revenues by Type

Tax Revenue53%

Replacement Taxes1%

Interest Income0%

Charges for Services22%

Sales3%

Rental Income1%

Alternative Revenue2%

Miscellaneous 6%

Other Financing 12%

Consolidated Expenses by Type

Wages & Benefits33%

Supplies5%

Contractual Services 14%

Utilities2%

Capital projects29%

Miscellaneous1%

Debt Service12%

Other Financing Uses4%

• New Position – Environmental Program Manager/Naturalist (Knoch Knolls

Nature Center) – Hire last quarter of year

• Change in Position Classification – Police Chief 30 to 40 hours

– Volunteer Coordinator 30-35 hours

– Community Relations 20-30 hours (staffing at 95th Street Center)

• Vacant position – Project Manger position currently vacant and will be

evaluated mid-year

Personnel

Wages

2 % Merit Pool$105,500

Compensation Study

$81,200

New Position$15,000

Position Reclassifications

$30,200

Wage Comparison 2012 to 2013 $231,900 Increase

Compensation Study 50% or $40,600 is included in 2013 budget document - $81,200 is total cost

Budgeted surplus $61,525 • Executive Director

• Finance

• Information Technologies

• Human Resources

• Planning

General Fund

• Police

• Park Board

• Trades

• Fleet

• Allocations

General Fund Revenues

Tax Revenue94%

Replacement Tax2%

Interest Income0%

Rental Income 0%

Alternative Revenue

0%

Misc3%

Admin Overhead1%

General Fund Expenditures

Executive7% Finance

7%

Information Technology

6%

HR6%

Planning9%

Police9%Board

1%Trades14%

Fleet10%

Fund Alloc2%

Transfers29%

General Fund

General Fund Budgetary Comparison

2012 2013 Dollar %Departments Budget Budget Difference DifferenceExecutive Director 405,261 405,595 334 0%Finance 382,913 405,933 23,020 6%Information Technology 287,368 337,150 49,782 17%Human Resources 365,499 355,755 (9,744) -3%Planning 580,983 563,201 (17,782) -3%Park Police 474,009 521,183 47,174 10%Park Board 54,483 55,254 771 1%Trades 791,450 846,206 54,756 7%Fleet 584,348 577,751 (6,597) -1%Allocations 1,768,500 1,816,829 48,329 3%

Total 5,694,814$ 5,884,857$ 190,043 3%

• Administration – Update the District’s 5-year Strategic Plan

• Finance – Debt Issue with update of District’s Credit Rating

– Assist Golf with Business Plan

Administration - Finance

• District wide initiatives – Employee insurance contribution rate and plan changes

– Employee Opinion Survey

– Training • Customer Service

• Security Awareness

– Analysis of PPACA (Patient Protection and Affordable Health Care Act) impacts

Human Resources

• Information Technology Master Plan

• PCI Compliance

• Microsoft Software Upgrades – Windows Server, Windows Desktop, Office, Exchange, SQL

Server

• ArcGIS, AutoCAD Software Upgrades

• Desktop Virtualization (VDI)

• Centralized Surveillance management

Information Technology

• Funding for Capital Projects

• $2.3 million proceeds

• 3 year maturity schedule – 50 year low interest rates - .55% or $11k per year

– Economies of scale in issuance fees

– Capital funding will diminish in future • Increased pressure on operating budget

• Cash in lieu funding drying up

• Uncertainty of grant funding

• Uncertainty of legislative changes and mandates from State

2012 G.O. Limited Park Bonds

• $10.2 million – Capital Budget (excludes debt)

• Capital Projects Prioritization Policy

• Public Participation Process

• Green Initiatives

2013 Capital Budget

• Commissioners Park Synthetic Turf Field Development – Multi-use Synthetic Turf Field (similar to layout at Nike

Sports Complex) – Proposed Substantial Completion in 2013

• Knoch Knolls Nature Center and Site Improvement – Alternative Funding Sources – Aligned with Core Values and Green Team Initiatives – Construction in 2013/2014

• Sportsman’s Park Site Remediation – Enrolled in IEPA Site Remediation Program (SRP) – Site Remediation to begin in 2013 (multi-year program)

Capital Project Highlights

• Knoch Park Improvements (north) – Site Renovations and ADA Accessibility – Drainage Enhancements – Proposed Substantial Completion in 2013

• Playground Projects – Renovations

• Country Commons • Crestview Knoll • Huntington Commons • Olesen Farm Park • River Run Park

– New Development • Ashwood Park

Capital Project Highlights

Project Distribution

• Parks Divisions

• Marketing

• Ribfest

• Recreation Programs

• Community Relations

• Recreation Support

Recreation Fund - $47,833 Surplus

• Centennial Beach

• Centennial Grill

• Carillon

• Facility Rentals

• Sponsorships

• Allocations

Recreation Fund Revenues

Tax Revenue27%

Replacement Taxes1%

Interest Income0%

Charges for Services49%

Sales3%

Rental Income3%

Alternative Revenue1%

Miscellaneous 7%

Other Financing 9%

Recreation Fund Expenditures

Park Maintenance34%

Marketing7%Rec Programs

36%

Community Relations4%

Rec Support3%

Beach8%

Grill1%

Carillon 1%

Other1%

Fund Alloc5%

Recreation Fund

Recreation Fund Budget to Budget Comparison

2012 2013 Dollar %Departments Budget Budget Difference DifferencePark Divisions 3,615,524 3,742,751 127,227 4%Marketing 696,526 705,905 9,379 1%Ribfest 20,000 16,500 (3,500) -18%Rec Programs 3,494,122 3,841,239 347,117 10%Garden Plots / Show wagon 9,616 8,790 (826) -9%Sportsmans 59,479 62,821 3,342 6%Paddleboats 55,666 51,936 (3,730) -7%Community Relations 440,195 429,240 (10,955) -2%Rec Support 330,475 336,228 5,753 2%Beach 804,515 836,094 31,579 4%Centennial Grill 159,862 152,636 (7,226) -5%Carillon 130,090 130,615 525 0%Facility Rentals 3,050 2,700 (350) -11%Sponsorships 59,797 95,448 35,651 60%Allocations 466,220 509,758 43,538 9%

Total 10,345,137$ 10,922,661$ 577,524 6%

• 10 major program areas – Youth sports

– Adult sports

– Youth Teen

– Active Adults

• Contribution margin offsets a portion of Marketing, Community Relations and Recreation Support budgets

Recreation Programs

– Camps

– Art Services

– Trips

– Fitness

– Early Childhood

– Special Events

Recreation Program Net Revenue

9%

34%

11%

12%

10%

20%

9%

38%

11%

12%

10%

16%

11%

43%

11%

13%

10%

9%10%

41%10%

13%

11%

9%Early Childhood

Youth-Teen

Youth Sports

Adult Sports

Art Services

Fitness

Special Events

Trips

Active Adults

Camps

Outer Ring - 2013 Budget

Inner Ring - 2010 Actual

• Complete initiatives within the Recreation Programming Plan • Initiate program offerings at the District’s 95th Street Center • Implement a full service Community Relations office with expanded

hours at the District’s 95th Street Center • Develop District-wide Customer Service Standards and implement

through associated staff training • Implement improvements to senior programming based on feedback

from participant surveys and 2012 focus groups • Meet or exceed projected rental revenues for the Nike Sports

Complex and newly developed Commissioners Park synthetic turf fields

• Exceed 2012 hours for District volunteers • Identify and implement improvements to Centennial Grill operations to

increase per person concession sales at Centennial Beach • Maintain high Centennial Beach attendance levels

Recreation

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Visitors 98,038 118,722 134,989 111,448 109,854 131,533 123,367 170,494 145,818 157,542

Centennial Beach Attendance

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

• Develop new, multi-year Strategic Marketing and Communications Plan

• Assist Golf in generating additional revenue through hole sponsorships

• Redevelop centennialbeach.org webpage

• Redesign Program Guide format and look

• Work toward a redesign of www.mynpd.org – the Intranet

Marketing

• Continue to maintain high quality Parks and Facilities

• Maintain turf quality above 95%

• Maintain number of parks that meet guidelines – 92%

• Park police - increase contact with park patrons and residents using our parks and trails

• Trades - maintain and improve facility utility expenses

• Additional improvements at Meadow Glens, Creekside and Ashwood park

• Improve playground safety surfacing

Parks

2013 Golf Services

• January-March – Off to a great start of the season. Increase in number of

rounds by 4,600

• April-June – On track to make our season. Play as expected with new

rate structure making an impact!

• July-August – A real scorcher - Rounds down 1,200 but still have

advantage of early season rounds

• October – Bottom dropped out. Rounds down 1,400 in October

The Rollercoaster of 2012

• Events impacting 2012 Budget – $137k surplus in 2012 Budget Document

– Naperbrook well gets completed in 2012 vs. 2011 adding an additional expense of $50k to 2012

– Revised surplus to manage to $87k

– Golf scales back in 2012 and plans to purchase 10 golf carts at NB with a budget of $30k. Based on need and potential loan from general fund,15 golf carts were purchased totaling $40k

– Revised surplus to manage to $77k

– Weather!

2012 Projected Financials

Who is Playing our Courses?

2011 2012 PercentCategory by Rate 2011 2012 Percentage Percentage ChangeJuniors 3,664 6,099 5.1% 8.2% 66.5%Seniors 14,980 23,363 20.8% 31.2% 56.0%Specials 12,608 4,793 17.5% 6.4% -62.0%Adult Resident 23,429 27,123 32.6% 36.3% 15.8%Adult Non-Resident 8,766 4,628 12.2% 6.2% -47.2%SRTT 4,397 4,600 6.1% 6.2% 4.6%Membership 4,032 4,205 5.6% 5.6% 4.3%

71,876 74,811 100.0% 100.0% 4.1%

2011 2012Resident 77% 84%Non-Resident 23% 16%

• Hold rates steady for 2013

• Continue to promote the value of the Brooks Advantage Card

• Grow the base of youth golfers by offering SNAG golf, an introductory program, at both courses

• Continue to grow the notoriety of golf lessons through the Brooks Golf Academy and increase participation numbers

• Focus on enhancing customer service by being a part of the District-wide customer service initiative in 2013

• Continue to emphasize building resident loyalty

2013 Focus Continue to Drive Customer Loyalty

• 40,000 Rounds

• $12k Surplus

• $140k Capital – Clubhouse windows

– Irrigation controls

– Deep well repairs

– Sprayer

• Addition of two Indoor Golf Simulators

2013 Springbrook Snapshot

• Bridges. Bridges will be re-planked. #2 bridge will have the ramps patched/repaired to smooth out the transition. Pavers are being added to the transitions on #9 and #10. Concrete will be patched on #9.

• Drainage. #8 green drainage will be repaired in the approach. #16 will have new drainage added/repaired to soft/wet areas near green. Continue to improve drainage on #10 fairway.

• Bunker edges. Several bunkers will have the edges reworked/resodded. The practice green bunkers will be refaced.

• New plantings in patio area and parking lot islands

2013 Springbrook Snapshot - Maintenance

• 37,000 rounds

• $87k surplus

• $101k capital – Golf Carts

– Bunker Repairs

– Irrigation Controls

– Maintenance Building Repairs

2013 Naperbrook Snapshot

• Small bunker in the approach on #18 green will be replaced with a new approach

• New bunker on driving range will be completed and open in the spring

• Tree replacement. Several trees will be replaced on #18 and #14 that were removed in 2012 (drought damage)

• Sprinkler replacement. Several sprinklers will be updated with part circles to minimize water usage. This will limit irrigation in native areas, saving water and improving turf

2013 Naperbrook Snapshot-Maintenance

Per Round Comparison

15-year average 2007-2011

– 2013 capital funding and spending eliminated for this comparison

– 2013 per round capital - SB $3.50 and NB $2.73

Springbrook -Total per round1

Average 2012 2013Rounds 41,353 40,000 40,000

Revenue per round 52.91$ 54.84$ 54.96$ Expense per round 38.66$ 37.50$ 38.58$ Operating Income 14.25$ 17.34$ 16.38$

Long-term Debt 13.88$ 15.02$ 15.11$ Admin Charge 0.84$ 0.95$ 0.97$ Capital 1.03$ 0.37$ -$ Net Income/(Loss) (1.50)$ 1.01$ 0.30$

Naperbrook -Total per round1

Average 2012 2013Rounds 37,846 37,000 37,000

Revenue per round 47.01$ 44.68$ 44.99$ Expense per round 39.14$ 36.36$ 38.24$ Operating Income 7.87$ 8.32$ 6.75$

Long-term Debt 3.14$ 3.32$ 3.35$ Admin Charge 0.92$ 1.03$ 1.05$ Capital 0.50$ 4.28$ -$ Net Income/(Loss) 3.31$ (0.32)$ 2.35$

Golf Fund Balance

0

200,000

400,000

600,000

800,000

1,000,000

2009 2010 2011 Projected 2012

Budget 2013

Golf Fund

Reserves

Closing Comments