2012 Budget Summary - Chicago Park District

TreasuryThe Treasury Department is responsible for managing the District's cash, investment and debtportfolios. The department monitors and adjusts the District's cash and investment position to meetdaily liquidity needs while maximizing investment returns. An Investment Policy developed by thedepartment and adopted by the Board guides the types and duration of investment tools utilized tomanage the cash position of the District. Responsibilities for managing the debt portfolio includemaintaining record of and ensuring proper payment of all outstanding debt. Treasury also evaluatesbond transaction proposals and refunding structures in order to determine the most cost effectivemethod of financing a portion of the District's capital needs as well as managing its long- term debtobligations.Department ExpendituresAccount 2010 Actual 2011 Budget 2012 BudgetPersonnel Services $ 373,816 $ 452,818 $ 457,488Materials & Supplies $ 11,184 $ 12,290 $ 11,755Small Tools & Equipment $ 2,156 $ 4,000 $ 2,500Contractual Services $ 1,081,168 $ 1,152,000 $ 1,426,200Total $ 1,468,324 $ 1,621,108 $ 1,897,943Personnel FTE 5 5.5 5$2,000,000$1,750,000$1,500,000$1,250,000$1,000,000$750,0002010 2011 20122011 AccomplishmentsTreasury anticipates prior to year-end to issue an amount not to exceed $150 million in GeneralObligation Unlimited Tax Bonds (Harbor Facilities Revenues Alternate Revenue Source) for theconstruction of a new harbor and marina to be known as ‘31st Street Harbor’ and to reconfigure andupgrade the existing harbors. The District went through an extensive public process and soughtvarious approvals for the new harbor. Multiple steps have been taken to prepare for the bondissuance including obtaining a financial feasibility report of the District’s current harbor system andthe anticipated impact of the proposed harbor improvements, as well as presentations to inform theDistrict’s Board, the various rating agencies and potential investors about the transaction.Continued to implement best practices during a volatile market by diversifying and selecting prudentinvestments to preserve and maintain the safety and principal of the District’s investment portfolio.In addition, Treasury prepared and issued a Request for Qualifications for Fund Managers tooptimize and maximize the District’s investment portfolio and expanded its’ list of approvedmunicipal depositories to provide additional investment options for the District.By strategically managing its’ cash flow, the District avoided, for the fifth straight year in a row,having to issue any short-term debt instruments thus saving approximately $2 million in annualinterest payments.2012 GoalsContinue to evaluate financing and restructuring proposals to maximize capacity and savings in itsdebt portfolio due to limitations of the District’s Debt Service Extension Base (DSEB).Create a Debt Service Management Policy.Explore current technology solutions to improve and strengthen treasury management protocols.131