Finance Committee Meeting

Monday, February 13, 2012

6:00 – 6:46 pm

Present:          Commissioners Gramann, Powers, Ullman, Jeffery, and Jaszka

Executive Director Biondo, Director of Finance & Administration Rini, Director of Parks, Facilities & Production Rosenberg, Director of Recreation Haring, Strategic Initiatives Facilitator Wilson

 

Meeting was called to order at 6:02 pm.

 

Review of Treasurer’s Quarterly Report

Director Rini reviewed the Fourth Quarter Treasurer’s Report for period ending December 31, 2011 which reflected preliminary, unaudited numbers. All funds ended in a positive fund balance. Both the Recreation and Corporate funds ended the year with better than budgeted performance.

 

Budget Review Questions

The Park Board acknowledged and thanked Directors Biondo and Rini for having answered questions that had been forwarded last week. Commissioner Powers asked for additional clarification to several additional questions relating to the definition of Corporate Replacement Tax, levying for the Paving & Lighting funding, definition of Recovery of Cost, and the changes in the Liability Fund. (attached)

 

Banking Services Review

Director Rini asked for Board consensus to proceed with a formal review of the Banking Services for the District. Discussions regarding District’s expectation for types of services and community involvement were discussed. President Gramann suggested utilizing a local bank in Carol Stream. Director Rini will present the Board with a timeline and outline of the Request for Qualification process in the coming months. Board consensus was for Director Rini to move forward with the review of banking services. 

 

Other Items – Future Annexations into District Taxing Boundaries

The Committee held a discussion regarding the annexation of the 32 acre town home development at the Fountains of Carol Stream.  Although annexed into the Village of Carol Stream, the development was never annexed into the Carol Stream Park District. The District’s Corporate Counsel is proceeding with the annexation process.

 

Executive Director Biondo explained the possibility to annex an additional 60.3 acres of industrial/commercial property just to the north of the Fountains development. The 60.3 acre parcel does not pay taxes to any park district at this time. Biondo also explained that there are several small pockets, and individual properties throughout Park District Boundaries that are not formally annexed into the District and therefore not paying Park District taxes. Discussion followed, and the Board consensus was that the District should make plans to annex all such properties into the Park District tax rolls.

 

Commissioner Powers made a motion to adjourn the Finance Committee Meeting. Seconded by Commissioner Jeffery. Meeting adjourned at 6:46 pm.

 

Budget Review Questions:

QUESTIONS IN black.

 

Answers in BLUE

 

1. What does the jump in the corporate replacement tax correspond to?  This is simply a best estimate at the time of the budget preparation.  The County is on a May-April Fiscal Year and so we have no hard data at the time of our budget preparation.

 

1. (There are) no numbers in the budget in any fund for grants, where is this number reflected?  We don’t budget grant revenue until we know when it is going to arrive.

 

1.  Can you break down miscellaneous expenses in the corporate fund?  The word “Miscellaneous” is a label required for the Bond and Appropriation Ordinance. You’ll note that none of the fund budgets shows such an account name In miscellaneous, you would find sales tax, fiscal year transfers, mileage reimbursement, and equipment rentals.

 

1. In the recreation fund, (there is) a budgeted increase in the concession income, does this reflect the new facility at McCaslin? Yes,

 

1.  In the recreation fund, what constitutes miscellaneous revenues and expenses?  REVENUES: This is the District 93 payment of Activ Kids (before and after)school reimbursements to CSPD. Notably, this is money that D-93 directs back to us to run the After Hours Summer Camp; and, to place building attendants at the schools we use for programs.   EXPENSES: Same sort of things as noted in #3 above.

 

1. In the paving and lighting fund, why are no bond proceeds shown?  No. The Paving and Lighting Fund gets its revenues directly from a small levy. The Paving and Lighting fund may be used to supplement the Bond-funded projects, but bond money does not have to be transferred to the P&L Fund for that to occur.  Usually, the paving and lighting money is used for smaller pavement repairs and preventative maintenance such as sealing.

 

1. Why do we show a large increase in the property tax received in the liability fund?  We moved the entire salary of our Risk management coordinator to this Fund. Previously, it was split between Corp and Rec.

 

1. In the corporate and recreation funds, what does recovery of cost represent? It is almost entirely affiliate fees; and the WDSRA installment payment for 116 N. Schmale building comes into the Rec Fund as this.

 

1. Does the proceeds from Land/Facility represent the payment due from WDSRA for their facility?  Yes, it is the annual payment to reimburse CSPD for their purchase of the building from us.  !f so, is this the final installment? No, the final installment is due 2015.

 

1. In the overview, it was mentioned that we wish to create a repair and replacement fund in order to collect interest earned from the bonds issued under the 2010 referendum.  Since the code allows for this fund as a recipient of tax proceeds, why has this not been done previously?

• In the past, we have rolled interest earned from bond issues back into the Capital Budget because of our limited capital funds. As part of our strategy for the CSPD2025 Plan, it was our intention to ‘take care of what we have’, and therefore provide a steady funding stream to the Repair & Replacement Fund.

13.  In each of the listed funds, what is the percentage of total tax revenue?

• Corp: 89%
• Rec: 27%
• Special Rec:  100%
• IMRF:  100%
• FICA:  83.3%
• Paving & Lighting:  100%
• Audit:  100%
• Liability:  100%

14. In the recreation fund, our 5/12ths target is $642K.  Our budget is for a year end balance is $266.5K.  How long do you foresee it taking the Park District to achieve our goal?

• Although there are many factors that come into play with this question, we estimate 3-5 years.

15. What revenue is included in other income reflected on the pie chart in the beginning of the document?

 

Other Income:                                  $376,974

• Recovery of Cost              $108,035              (WDSRA pymt, NSF fees, Affiliate fees, CSYFA annual pymt)
• Miscellaneous                   $137,836              (Repair/Replacement Fund carry-over, District 93 contribution to Activkids Program)
• Corporate Repl Tax         $  81,000               (Corporate Replacement Taxes)
• Due from Recreation      $  40,000               (FICA/IMRF Transfer)
• Due from Spec Rec          $    9,103               (FICA/IMRF Transfer)
• Awards                                 $    1,000               (PDRMA award)

 

16. What do the percentage numbers on pages 1-14 represent?  (These are the pages showing the multi year comparisons.) The third column from the right shows the change from the 2010 ACTUAL Revenues and Expenses to the 2011 ACTUAL Revenues and Expenses.  The last column on the right shows the changes from 2011 ACTUAL Revenues and Expenses to the BUDGETED 2012 Revenues and Expenses.

17.  In the corporate fund, the percentage change show -2% while the actual numbers reflect growth.  Which is relevant?  Uh-oh. Maybe there are copies of the first sheets distributed in which the spreadsheet was flawed. We have attached the current, correct copy. This shows that our estimated, budgeted Corporate Fund revenue will be 4% lower than 2011; and, Expenses will be 1% higher.