CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance approving an amendment to increase the City of Naperville Annual Budget for Calendar Year 2021 by $1,000,000 and approving a cash transfer from the General Fund to the Naper Settlement Fund (requires six positive votes)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City maintains an agreement with the Naperville Heritage Society to provide for the operation and maintenance of Naper Settlement. Finances for Naper Settlement, exclusive of Heritage Society funds, are included as part of the City's overall financial position. Most of the funding for the Naper Settlement is obtained through the annual property tax levy, with smaller amounts coming from admissions, programming, and rentals. The Naper Settlement Fund is intended to be structurally balanced with property taxes levied by the City. Revenues generated by Naper Settlement through rentals, admission, and school programming are also used to support the maintenance and operations of the museum campus. The fund is one of many that make up the City's overall financial position. The City maintains a responsibility to ensure the Naper Settlement Fund, as a part of that financial position, remains balanced. If the fund becomes unbalanced, appropriate action should be taken to correct the imbalance.
Since the onset of the COVID-19 pandemic in 2020, the Naper Settlement Fund accumulated a negative fund balance. Staff recommends a cash transfer from the General Fund to the Naper Settlement Fund of $1,000,000 to correct this imbalance for the start of 2022.
DISCUSSION:
Over the last five years, the Naper Settlement portion of the property tax levy has remained nearly flat as have other Naper Settlement revenues. Neither has kept pace with the increasing cost of operating the Naper Settlement. In 2016, the Naper Settlement Fund maintained a fund balance of more than...
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