The Naperville Park District Finance Committee weighed its financing options at a Thursday meeting as the district prepares for a possible referendum that could appear on the ballot in 2026.
It is one of the latest steps the district has taken in response to an assessment completed in 2024 regarding the district’s indoor recreational needs. The assessment, which resulted in a 266-page report, offered a range of takeaways, from the demand for more aquatic facilities to the need for more enhanced seniors’ programs.
In May, the district entered into contracts with two different consulting firms to help navigate the district’s indoor recreation needs in the years to come. The firms, Williams Architects and Beyond Your Base, were hired specifically to help with the public engagement process, site and facility conceptual design and determining whether the district should seek voters’ approval through a referendum question on the ballot.
The district intends to collect feedback from the public this fall about pursuing a referendum before the full park district board makes a final decision, Naperville Park District Executive Director Brad Wilson said.
The referendum could appear on the ballot either during the March 17, 2026 general primary election or during the November 3, 2026 general election.
There are four options the district can pursue for financing its capital projects, according to Anthony Miceli, senior vice president of Speer Financial, whose firm serves as a municipal advisor to the park district.
One option is a general obligation park bond, which requires a referendum. The general obligation park bond would be paid for by property taxes with no limit as to tax rate or amount. Another option, a general obligation limited tax bond, does not require a referendum and would be paid for by state-set levy limits. The general obligation limited tax bond is capped at 0.575%.
Under state law, the statutory debt limit for all park districts is 2.875%, with referendum and non-referendum bonds included in that limit.
The other two options, which do not rely on property taxes, include alternative revenue source bonds and debt certificates. Alternative revenue source bonds are not subjected to any debt capacity constraints and are paid for by any lawfully available resource, but also have a property tax levy as back up that the district would abate each year. Debt certificates are paid by the district’s available funds and are constrained to 2.875% of the district’s total property value.
Currently, the district has around $19.95 million in total outstanding debt, with around $18.9 million in limited tax bonds and around $1 million in debt certificates that will be paid off next year. Under the district’s non-referendum borrowing limit of about $58 million, that leaves the district with about $39 million in non-referendum borrowing capacity.
The district’s statutory debt limit is around $292 million. Considering the current outstanding debt, that would leave the district’s remaining statutory debt at around $272 million, which is the maximum amount of debt the district could issue through a referendum.
Under their current financial plan, the park district is bringing in about $13 million annually for capital improvement projects, funded through a combination of existing budget resources and general obligation limited tax bonds. The plan also aims to keep a minimum capital fund balance of $10 million in case of emergency repairs or unexpected costs. The district plans to issue an additional general obligation limited tax bond in 2026.
If the district were to hold a referendum for a general obligation bond, it would allow the district to fund more capital improvement projects. The money generated by a general obligation bond can only be used for capital needs. The tax that is extended to repay the bond can also only be used to repay that bond. Once the debt service is paid off, the tax falls off.
The district is also considering dipping into its cash-in-lieu funds to help pay for future capital projects.
Currently, the district has around $8.9 million in “cash-in-lieu” funds, which is funding the district receives from developers as they come into the community and develop residential properties. Per city ordinance, land developers must dedicate 8.6 acres of park land per 1,000 people in any planned development or “the cash equivalent of the 8.6 acres,” according to the Naperville Park District website.
As far as utilizing these cash-in-lieu funds, the district is considering using about half of these funds for capital improvement projects in combination with a potential referendum.
