The Naperville Park District Finance Committee weighed its financing choices at a Thursday assembly because the district prepares for a doable referendum that would seem on the poll in 2026.
It is without doubt one of the newest steps the district has taken in response to an evaluation accomplished in 2024 concerning the district’s indoor leisure wants. The evaluation, which resulted in a 266-page report, supplied a variety of takeaways, from the demand for extra aquatic services to the necessity for extra enhanced seniors’ packages.
In Might, the district entered into contracts with two totally different consulting corporations to assist navigate the district’s indoor recreation wants within the years to return. The corporations, Williams Architects and Past Your Base, have been employed particularly to assist with the general public engagement course of, web site and facility conceptual design and figuring out whether or not the district ought to search voters’ approval by way of a referendum query on the poll.
The district intends to gather suggestions from the general public this fall about pursuing a referendum earlier than the total park district board makes a last resolution, Naperville Park District Government Director Brad Wilson mentioned.
The referendum might seem on the poll both in the course of the March 17, 2026 basic main election or in the course of the November 3, 2026 basic election.
There are 4 choices the district can pursue for financing its capital initiatives, based on Anthony Miceli, senior vice chairman of Speer Monetary, whose agency serves as a municipal advisor to the park district.
One possibility is a basic obligation park bond, which requires a referendum. The overall obligation park bond can be paid for by property taxes with no restrict as to tax fee or quantity. An alternative choice, a basic obligation restricted tax bond, doesn’t require a referendum and can be paid for by state-set levy limits. The overall obligation restricted tax bond is capped at 0.575%.
Below state regulation, the statutory debt restrict for all park districts is 2.875%, with referendum and non-referendum bonds included in that restrict.
The opposite two choices, which don’t depend on property taxes, embody various income supply bonds and debt certificates. Various income supply bonds aren’t subjected to any debt capability constraints and are paid for by any lawfully obtainable useful resource, but in addition have a property tax levy as again up that the district would abate annually. Debt certificates are paid by the district’s obtainable funds and are constrained to 2.875% of the district’s whole property worth.
Presently, the district has round $19.95 million in whole excellent debt, with round $18.9 million in restricted tax bonds and round $1 million in debt certificates that shall be paid off subsequent 12 months. Below the district’s non-referendum borrowing restrict of about $58 million, that leaves the district with about $39 million in non-referendum borrowing capability.
The district’s statutory debt restrict is round $292 million. Contemplating the present excellent debt, that would depart the district’s remaining statutory debt at round $272 million, which is the utmost quantity of debt the district might situation by way of a referendum.
Below their present monetary plan, the park district is bringing in about $13 million yearly for capital enchancment initiatives, funded by way of a mix of present finances sources and basic obligation restricted tax bonds. The plan additionally goals to maintain a minimal capital fund stability of $10 million in case of emergency repairs or surprising prices. The district plans to situation a further basic obligation restricted tax bond in 2026.
If the district have been to carry a referendum for a basic obligation bond, it might permit the district to fund extra capital enchancment initiatives. The cash generated by a basic obligation bond can solely be used for capital wants. The tax that’s prolonged to repay the bond may also solely be used to repay that bond. As soon as the debt service is paid off, the tax falls off.
The district can be contemplating dipping into its cash-in-lieu funds to assist pay for future capital initiatives.
Presently, the district has round $8.9 million in “cash-in-lieu” funds, which is funding the district receives from builders as they arrive into the group and develop residential properties. Per metropolis ordinance, land builders should dedicate 8.6 acres of park land per 1,000 folks in any deliberate growth or “the money equal of the 8.6 acres,” based on the Naperville Park District web site.
So far as using these cash-in-lieu funds, the district is contemplating utilizing about half of those funds for capital enchancment initiatives together with a possible referendum.
cstein@chicagotribune.com
