The DeKalb Park District’s proposed $22.3 million fiscal 2026 budget has a nearly $10 million deficit, which officials said is primarily because of funds needed for a new Hopkins Pool.

The Park Board recently took a close look at its proposed budget, which hasn’t yet been finalized.

Executive Director Paul Zepezauer said the district would be “in the black” but for the pool, which has a budgeted expense of $10 million in the fiscal year 2026 budget.

The budget, if approved, will come with a roughly $9.9 million deficit that is due primarily to ongoing work at Hopkins Pool. The district is expecting to cover that deficit by pulling funds from its reserves and with money already earmarked in previous budgets, officials said.

The district also issued long-term debt of approximately $9.6 million for the pool. Total project costs are expected to be between $15 and $16 million when the pool is complete, officials said.

The proposed fiscal 2026 budget also includes funds for Haish Gym and River Heights Golf Course, documents show.

The park district received a permit from the Illinois Department of Public Health for the pool project, which officials have said is slated for completion by summer 2026.

New starting next year, the park board intends to follow a fiscal year budget calendar running January through December.

Previously, the park district operated on a different fiscal year schedule beginning in March and ending the following February.

Zepezauer said it prompted the district to be behind with projects in the past.

The park district will face several organizational challenges in the new fiscal year, with one being an anticipated increase in health insurance costs due to rising premiums.

Zepezauer said the district is looking at about a 4 to 6% increase in health insurance costs.

He said he recommends the park district absorb a bulk of that increase.

Health insurance is expected to be considered by the park board at its Nov. 20 meeting.

Looking ahead to 2027, Zepezauer said health insurance changes could be in order.

“Maybe working into 2027 and having more time to really dig into it, maybe there’s a better compromise out there that works for everybody,” Zepezauer said. “I don’t think right now is the time to do that.”

To date, the park district has amassed a fund balance of $18.3 million and is anticipating starting fiscal year 2026 with $12.3 million.

“Fund balances had been accumulating over a period of years in anticipation of the pool project and other projects needed throughout the district,” Zepezauer said.

Officials said the district has a fund balance policy calling on the park board to set aside revenue in an amount of 25 to 50% of its annual expenses.

Zepezauer said the district is projected to be overfunded in fiscal year 2026.

“Overfunding leaves us a little bit vulnerable to property tax challenges and also a lot of management letter comments,” Zepezauer said. “We want to avoid those.”

A challenge can come if a taxpayer decides to appeal the assessed value of their home, which could change someone’s tax bill, according to the Illinois Department of Revenue.

Commissioner Dean Bourdages asked how the district became overfunded.

Zepezauer pointed to a donation that the park district received from the Ellwood House Association.

“There were about $850,000 in private donations that were given to the district from the Ellwood Association,” he said. “The Ellwood Association collected. They were for specific projects. Projects have just been delayed repeatedly due to a variety of reasons.”

That money was deposited into the district’s museum fund.

Bourdages questioned whether it’s an issue.

“Is that bad?” Bourdages said.

Zepezauer suggested that it may be.

The district is in the middle of defending itself on a property tax challenge, he said.

“It would have been better in the capital fund,” Zepezauer said. “Because you can exceed the number without having to worry about being overfunded and property tax challenges.”

Zepezauer said the district hopes to end 2025 with less funding in the bank.

The district is projecting that it will have $2.4 million in fund balance by the end of 2026, park district documents show.

“We’re trying to be in a good spot,” he said.

A vote on the budget is expected when the park board meets in December, at which point a public hearing will be held.

At that point, the district’s residents are invited to come with questions and comments.