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News
Park district board OKs balanced $18M budget : News : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, IllinoisPark district board OKs balanced $18M budget
| 39% of revenue comes from program fees; 30% from property taxes
| by Lyle R. Rolfe
| 3/4/2010
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Oswegoland Park District Board members approved their first calendar year budget at Monday's board meeting.
The budget of $18,237,917 is balanced with total revenues matching expenditures.
Since its inception, the district's budgeting and financial system had been on a fiscal year the same as most other government agencies, but trustees voted last year to go to a calendar year basis-Jan. 1 to Dec. 31.
Bill McAdam, executive director, asked the board in December to approve a tentative new budget starting Jan. 1, and ending the fiscal year budget at the end of its eighth month, which was December of 2009.
McAdam said his staff recommended the change based on their operation.
"We took a look at the golf course, the pool, PrairieFest, and summer programming with a May 1-April 30 fiscal year and those seasons were being cut in half," McAdam said, adding, "We had revenue coming in during one fiscal year and expended during another fiscal year. We knew where we were internally, but the audit would not be current. We got the audit for the golf course in October and it went back to 2008 and a whole season had passed."
The other reason was construction cycles, he said.
"We like to let contracts out in the winter for the spring construction cycle but with a May 1 budget, it was difficult to let contracts for projects that were not yet in an approved budget.
"Sometimes we were in a situation where we had to ask the board to approve those items and commit to them being in the budget without having a final budget. This way we can let contracts in late winter for spring construction in the current budget," he said.
According to a graph prepared by Rich Zielke, deputy director, 33 percent of the district's revenue is spent for salaries and wages, 16 percent for general operations and 10 percent for contractual services. Additionally, nine percent is for capital projects, eight percent for debt service, two percent for utilities, and one percent for insurance.
They have 20 percent in reserve, which is similar to a working cash fund that school districts have. The reserve allows them to borrow money from the fund to pay daily operating expenses during times when they are waiting for tax payments from the counties, according to Zielke.
"During the summer when expenses are higher, we need more money, so we have a reserve that should carry us through for three to four months," McAdam said.
On the revenue side, 39 percent of their income comes from program registrations and fees, followed by 30 percent from real estate property taxes.
The reserve balance makes up 20 percent of their income followed by the previous year's balance, which is six percent of their income.
Government grants which are earmarked for specific projects make up five percent of their income, followed by interest income on money invested, and space rentals, each of which is less than one percent of their total income.
"We don't approve capital projects unless we know the grant funds will be available," McAdam added.
The final budget totals $18,237,917 up from last years $16,011,210. Fund totals are: Corporate, $2,370,59, up from last years $2,021,764; Recreation, $5,672,167, up from $5,003,346; Social Security, $765,666, up from $489,157; Museum, $108,597, up from $104,830; and Liability Insurance, $211.920, up from $158,119.
Also, Audit, $21,973, up from $18,933; Paving and Lighting, $93,903, up from $69,210; Unemployment Fund, $33,739, down from last years $41,646; Worker's Compensation, $78,456 down from last years $85,903; and Illinois Municipal Retirement Fund, $619,606 up from $457,678.
Also; Fox Valley Special Recreation Association, $1,004,402, down from $1,063,957; Fox Bend Golf Course, $2,384,173, up from $2,094,930; Swimming Pool, $605,703, up from $557,616; Capital Projects, $2,977,250, up from $2,587,470; and Debt Service, $1,289,763, up from $1,256,651.
Nancy Woods, director of finance, said the Unemployment and Worker's Compensation funds were down because there were surpluses that carried over into this year.
The Fox Valley Special Recreation Association is lower because the park board trustees voted last year to reduce their levy to two cents from four cents per $100 of assessed valuation for this fund.
Woods noted that the salary freeze from last year on all employees, was for the fiscal year, which ends on May 1. She said the board trustees have not decided whether the freeze should end at that time or be continued through the calendar year ending on Dec. 31.
One item that may still change is the cost of the district's health insurance premium, which is up for renewal on May 1, the end of the fiscal year under the former budget.
"We're hoping to have quotes for the board to consider in March and bring it to them for final approval in April," McAdam said.
Employee health
insurance to cost $297,350
The district's health insurance cost now is $297,350 for the fiscal year.
McAdam said the district pays the total amount for all full time employees and their family. The insurance is not available to part-time employees.
The monthly cost to the district is $220.54 for the employee; $460.72 for the employee and spouse; $417.97 for the employee and children; and $658.15 for the total family.
If the employee chooses the PPO or PPO with the health savings he or she must pay the difference between this plan and the HMO.
All but six of the district's 48 full-time employees participate in the HMO program.
McAdam said they have had discussions about having employees pay part of the cost.
"But our premium increases have been lower than industry standards, so no changes have been made. But it's something we have to watch," he said.
McAdam said he was not sure why they have been able to keep the premium costs down, but said they do negotiate with the company, which is Blue Cross-Blue Shield.
Dental, vision and disability insurance also is available but the employee must pay for them, he added.
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