2012 Budget Summary - Chicago Park District

Financial PoliciesBudget PolicyThe District operates on a calendar-year basis beginning on January 1 and ending on December31. The adopted budget is balanced, in that the budgeted expenditures do not exceed theanticipated revenue for the fiscal year. During the course of the fiscal year, if there is asignificant change to the budget, a supplemental appropriation will be submitted to the Board.When a supplemental appropriation is submitted, the Board must give 10 days notice and holda public hearing before passage. Board action is required to make budget adjustments totransfer expenditure authority from one fund to another and to make adjustments acrossaccount classes (i.e. from personnel services to contractual services).Fee PolicyThe District develops a detailed cost analysis periodically and adjusts fees by a factor intendedto represent inflation. Fee setting is not only a function of the cost of service, but of thecommunity served and program participation goals. Nationally, park and recreation programsrarely recover the costs of registered activities through fees. Some participants are unable topay the full cost of the programs they enter. Ignoring ability to pay might reduce demand forprograms sharply.Fees are reviewed and adjusted from time to time to reflect inflation. A more detailed analysisis conducted every few years or when the District experiences significant changes inorganization or program delivery.Applicants with Internal Revenue Service 501(c)(3) (nonprofit) certification may receive adiscount of up to 50%.A 15% charge will be applied to any refund requested for room rental prior to the scheduledstart/event date. No refunds are given after the start/event date.Harbor fees are based on the rated capacity of the berth facility, or the boat assigned to theberth, whichever is greater.Non-resident rates are double the maximum allowable for programs, athletic facilities androom rentals. Residency will be determined by State-issued ID or current residential utility bill.Debt PolicyThe District manages its debt portfolio in accordance with State and Federal rules andregulations. Under state statutes, the District is governed in how it issues debt as well aslimitations on the issuance of certain types of debt. Currently, the District’s statutory generalobligation bonded debt limitation is 2.3% of the latest known Equalized Assessed Valuation(EAV). The District was $1,472 million or 76% below the $1,946 million state imposed limit.34