How much nontax revenue is covering suburban park district costs?
Because competition for property tax dollars in Illinois is stiff, local government agencies often have to look for other revenue to cover annual operational costs.
For park districts, that means programming and event fees.
A 2023 National Recreation and Parks Association study shows the average American park district generates enough nontax revenue from service charges to cover 24.6% of the parks and recreation agency’s annual operating costs.
However, most suburban park districts surpass that national benchmark, according to a Daily Herald analysis of 60 suburban park districts’ most recent financial audits. Only four of the 60 districts didn’t hit that target.
| Top 5 | |
| South Barrington | 78.7% |
| Glen Ellyn | 75.6% |
| Hampshire | 74.8% |
| Prospect Heights | 68.1% |
| Hoffman Estates | 66.9% |
| Bottom 5 | |
| Rosemont | 7.1% |
| Oakbrook Terrace | 16.8% |
| Winfield | 20.2% |
| Medinah | 21.7% |
| Warrenville | 29.1% |
| Source: Park districts’ annual financial audits | |
“We aim each year for a little more than 50% of our operational revenues to come from fees and services,” said Huntley Park District Executive Director Scott Crowe. “We’re in a pretty good spot that property taxes will even be a little lower this year.”
According to its most recent audit, Huntley parks received more than $4.2 million from event fees and charges for services, enough to cover 50.3% of that year’s operating costs.
“Our general philosophy is all programs that can support themselves should,” Crowe added. “We even want some of them to generate a surplus in order to cover some of the administrative overhead.”
Property tax revenue is generally earmarked for playgrounds and other amenities that don’t generate revenue as well as the personnel that support the care and maintenance of those facilities, he said.
In general, park districts represent less than 5% of most suburban property tax bills. Finding alternative revenue sources is important for all park districts, officials said, because so many other local governments rely in some part on property taxes as well.
“This is absolutely a strategy we rely on to lessen the burden on taxpayers,” said Dave Thommes, executive director of the Glen Ellyn Park District.
Last year, Glen Ellyn parks received 75.6% of its annual operating costs in nontax revenue — more than three times the national average.
“I know we have one of the lowest taxing rates in DuPage County among similar taxing bodies,” Thommes said. “We try to keep our staffing lean to keep our costs down while we are also constantly trying to make sure we are meeting community needs through programming and events.”
Only South Barrington Park District received a higher percentage of its annual operating expenses through service charges than Glen Ellyn last year, according to the analysis. However, the South Barrington district’s amenities largely are tied to its expansive tennis club.
Park districts in Bensenville, Hampshire, Hoffman Estates, Prospect Heights, Wauconda and Wheeling also reported nontax revenues in excess of 65% of annual operating costs in those districts’ most recent audits.
On the flip side, Medinah, Winfield, Oakbrook Terrace and Rosemont park districts all reported receiving nontax revenues below the national average.
Oakbrook Terrace Park District Executive Director Shannon Elsey said it’s no surprise to her these smaller park districts don’t receive as much as some of their larger brethren from fees and service charges.
“We all certainly have smaller constituencies, so that limits the opportunities for diverse revenue streams,” she explained. “We still do our best to be good stewards of taxpayer dollars.”
Elsey said she often partners with neighboring park districts to offer programs and events sought by district residents. Despite the challenges and limitations of the district, she doesn’t believe consolidation with a neighboring district would benefit taxpayers.
“From a programming perspective, we have a solution that works for us,” she said. “I don’t think consolidation is the answer.”
Last year, Oakbrook Terrace parks received enough nontax revenue to cover just 16.8% of its annual operating costs. Only Rosemont received a lower percentage at 7.1%, according to those districts’ audits.
Melissa May, a senior research manager at the national association, said park district officials shouldn’t look at the national average for nontax revenue as a target.
“It’s really a starting point, not a standard,” she said. “Every place is different and under different sorts of financial pressures.”
Other benchmarks provided in the national report show on average 2,287 residents per park nationally, one playground for every 3,759 residents and that park agencies spend about $95 annually per resident.