REC Center referendum

1. REC Center referendum Frequently asked questions

2. Presentations • Brochure available • Questions: referendum@yorkville.il.us • Forwards to Bart Olson (bolson@yorkville.il.us) and Laura Schraw (lschraw@yorkville.il.us) • Public meetings: • October 9, 5:30pm, City Hall • October 16, 9:15am, REC Center • October 25, 6:30pm, REC Center

3. Why is there a referendum? • City Council wants your opinion. • On July 24, 2012 the City Council voted to place a non-binding referendum question on the ballot to ask if residents want the City to purchase the REC Center located at 202 E. Countryside Parkway.

4. Referendum question • Should the United City of Yorkville purchase the REC Center to operate as a public recreation facility through a 20-year installment purchase contract at a purchase price not to exceed $2.5 million with interest at a rate not to exceed 6% per year?

5. Frequently asked questions

6. Who will pay? • Budgeted like a business – Enterprise Fund • Membership fees • Rental income from attached commercial units • Program and class revenue • No proposal for taxes to be used to pay for this facility

7. REC Center Budget, FY 12

8. Who uses the facility? • 1,400 paid members • Annual, quarterly and monthly members • 1,600 additional monthly users of programs, classes, open gym, pool, track and preschool that are not facility members • General public • All recreation program enrollment, park reservations, and special event registration is handled at the REC Center • Cooling and warming center during normal business hours and in emergencies • Recreation Department staff • All employees are housed at the facility

9. What is the benefit of being in one location? • Centralized facility for programming • No rent at other locations • Administrative offices • Parkview schools • Yorkville Congregational Church • Total rent for all three buildings was $38,400 annually • Increase in variety and frequency of program offerings • Increase in revenue for all recreation programming

10. What will change if the vote is yes? • City Council will use the outcome to consider purchasing the building • Non-binding referendum • If the City purchases the building, the facility will continue to operate in its current capacity • The City will no longer pay taxes on the building • All income from the rental units will go to the City

11. REC Center Budget, if Purchased New rental income From commercial units New maintenance costs because of City ownership $59,400 $25,000 Property Taxes $61,503 Lease Payment $223,647 Purchase Payment $218,647 ($5,000 cheaper)

12. What will change if the vote is no? • City Council will use the information in their consideration of recreation programming and locations. • Non-binding referendum • If the City Council chooses not to operate in the REC Center, recreation programming will be relocated based on available local facilities (public and private) • Likely decrease class offerings • Private facilities may require rental payments • School usage based upon negotiation with school district

13. Where does the General Fund transfer go? • General Fund transfer goes to the Parks and Recreation Department (79) • $0 goes towards operating the REC Center (80)

14. When (if) the facility is purchased, won’t it raise my taxes? • No • Enterprise fund • Again, the facility is paid for by: • Membership fees • Rental income from units • Program and class revenue

15. REC Center Budget, FY 12

16. Net operating cost comparison

17. Why does the City need a REC Center? • 2007 mail survey for Parks and Recreation services • 44% response rate, 531 households participated (similar amount to recent City Services Survey) • Centralization of facilities • Decentralization net cost was $38,400/year • Administration offices, programming, classes, preschool, open gym and studios in one location • Increased program offerings

18. Why is this the City’s concern? • Parks & Recreation is a department of the City • Park Districts are a separate taxing body

19. Why such an old building? • Building was constructed in 1995 • Building and land appraised at $3.5 million • Appraisal does not include fixtures, materials or equipment in the building • Police station/City Hall was built in 1999 • City has been maintaining the building over the past 4 years of the lease agreement • Other City buildings older than the REC Center • Old Post Office • Public Works Facility • Old Library

20. Why can’t the City get a lower interest rate? • Purchase agreement term is for the current owner to be the lender • Seller not willing to sell for less than appraised value, unless it is self financed • City is not seeking a loan or bond from a bank or financial institution • Purchase price at $2.5 million at 6%, comparable to rates for other business and commercial property purchases, as this is not a residential home • Total Principal & Interest over 20 years = $4.35M

21. REC Center Purchase Terms • Purchase terms were distributed at the June 26, 2012 City Council meeting. • Handouts available at this meeting. • Exact purchase agreement language still being worked out between both parties, and will be made available to the public when preliminarily approved by both parties

22. Alternate informational meetings • Same presentation and open Question & Answer session on: • Tuesday, October 16, 2012 at 9:15 am at the REC Center • Thursday, October 25, 2012 at 6:30 pm at the REC Center

23. Question and Answer • Audio recording of this meeting will be available on the City website tomorrow. • Questions?

24. Thank you referendum@yorkville.il.us630-553-4350