Friends of the Parks

December 1, 2010

 We congratulate the Park District on holding the line on property taxes and for avoiding layoffs for the sixth year of this administration.  

 The 2011 Budget Summary document is clear and informative.

 The use of TIF surplus is appropriate, but, we believe the TIF surplus should be computed at 7.4% based on when the TIF’s were established 23 years ago and not at today’s 6.68% calculation.  The recalibration of TIF surplus funds to 7.4% would generate nearly $1 million in additional revenue.

We commend the District on allocating funds for professional training.  This is an important investment in customer service training and certification of 200 additional recreation staff. 

We support the Park District’s programs to combat youth violence and encourage the expansion of programs for teens in high-risk districts 6, 8, 11, 15 and 25.

Permit revenue increases by 20% which indicates increased usage of ball fields and outdoor activity areas.   The more people use our parks, the better for our children, our health and our neighborhoods.    

We recommend the following changes or amendments: 

1. Of the six privatization contracts, Soldier Field and the Martin Luther King Center project positive revenue growth in 2011 along with reduced management fees.   Four other private contracts are not projecting positive revenue growth for the District in 2011.   The contracts should be evaluated. 
2. Energy service contracts and capital projects were awarded in 2010 and in prior years ($10 million in capital dollars alone in 1997) with the stated effect to lower utility usage in parks.   Taxpayers should see the fruit of the capital expenses and private service contracts in reduced utility costs in 2011.
3. Parking was privatized in 2010 with the promise to increase non-tax revenue.  In 2011, parking revenue is projected to decrease $150,000 or 6% from 2010, but the management fee increases $30,000, or 3%. Maintain the parking management fee at the 2010 level.
4. Eliminate the boater fee increase as well as the harbor storage areas.  The majority of the additional revenue from increased fees goes directly to pay a 10%, or $800,000, increased management and operations fee to the private contractor.  This transfer of dollars to the private management company nearly washes out the projected increase from the harbor fees.   There is little net gain to taxpayers.
5. Reevaluate the costs to rent park facilities.  The projected decrease of $270,000 or 11.2% in 2011 raises the question that rental fees may be too high, encouraging groups to use other venues. 
6. Increase donation and grant income from the projected $5 million, the same as 2010.  This revenue source is down from a 2007 high of $9 million.  State and federal grants from CMAQ funds, LAWCON funds and new programming dollars for healthier lifestyles and for crime prevention programs for at-risk youth are available for the Chicago Park District.  A more aggressive grant program is critical to maximize both capital and operating dollars. 

 In our preliminary review of the 2011 budget, one policy change stands out that Friends of the Parks has historically been opposed to – advertizing in parks.  The budget presentation announces a one year pilot project for a sponsorship and advertising contract.   We recommend that the District maintain the event and sports sponsorship, but drop the advertizing component of the RFP. 

 Chicago’s parks were established specifically as spaces of respite and non-commercialization.  Citizens need to trust that they can go to parks and not be bombarded with sales signs. 

 We support the 2011 budget with modifications presented above.  Thank you for the opportunity to present our budget comments at today’s meeting.

 Sincerely,

 Erma Tranter, President