In addition to allowing other organizations to take over use of forest preserve land, the Kane County Forest Preserve District has been generous with taxpayer supplied funds. In January 2013, a Finance Committee agenda item from Executive Director Monica Meyers and Finance Director Ken Stanish caught our attention. It requested approval of a $2,000,000 transfer from the Land Acquisition Fund to the Construction and Development Fund for the City of Aurora’s River Edge Park Pedestrian Bridge Construction Project. The memorandum explained that the District had entered into an agreement with the City of Aurora in 2010 to assist with construction of the bridge with a $2 million contribution, and that the funds would be needed shortly to reimburse Aurora for engineering and construction costs.
“The funds have already been set aside in the Land Acquisition fund for the project and will be moved to the Construction and Development Fund. There will be no impact on the available balance in either fund.”
Curious. By what accounting magic could the movement of $2 million have no effect on the balance sheet? And why were significant Forest Preserve District funds being spent on a city park?
The February 9, 2010 minutes of the Full Forest Preserve Commission meeting record the unanimous approval of the $2 million IGA with Aurora with no discussion and no dissent. Prior to the Full Commission meeting, the Executive Committee met on February 5, 2010. There, too, the agreement passed with no discussion and no dissent noted. Why would the expenditure of $2,000,000 for a city park not merit a substantial discussion, and why did no one vote against it? The answer was not in the record, so we did some research on River Edge Park.
River Edge Park is the centerpiece of a 10-year master plan for Aurora. It is
“not simply a park, it is a critical part of a larger plan, created first and foremost to spur economic development, create jobs and strengthen our community tax base,”
according to Mayor Tom Weisner, as quoted on foxvalleylabornews.com (10-13-10). It will also clean up polluted land and create open space, while providing an entertainment venue, a play area, concessions, fountains, walking paths, a bridge, and natural areas. River Edge Park will be a regional entertainment venue that will foster economic development in the downtown area.
Situated on land owned by the City of Aurora and the Fox Valley Park District, River Edge Park is a joint public/private venture, with the main public funding source being a Tax Increment Financing District (TIF) and the main private funding source being grants and donations from individuals and corporations. To build the park, the City of Aurora secured $15 million in grant money, including $8 million from the Illinois Department of Commerce and Economic Opportunity, $3 million from the Fox Valley Park District, $2 million from the Kane County Forest Preserve District, and $2 million from the Dunham Fund.
In a 2-11-13 letter to Executive Director Monica Meyers, we asked for an explanation of why Forest Preserve funds were being used to build a bridge in a city park. In her reply, Ms. Meyers said that the $2 million was part of the 2007 referenda funds, and that approximately 15% of every referendum is spent on capital initiatives, with 85% spent on land acquisition.
“Additionally, the ballot language for the 2007 referenda identified a variety of expenditures; ‘Shall the Forest Preserve District of Kane County, Illinois borrow money and issue general obligation bonds in an amount not to exceed $85,000,000 to acquire and preserve forests and natural lands, protect wildlife habitats, enhance flood control, improve hiking and biking trails and other recreational areas, provide forest and wildlife education programs and improve forest preserves, wetland and prairies, all in accordance with the purposes authorized by the Downstate Forest Preserve Act of the State of Illinois as amended?'”
She confirmed that the bridge was on city property, not Forest Preserve property, but pointed out that the bridge would provide access to the Fox River Trail. While the bridge may “improve hiking and biking trails” as stipulated in the referendum request, taxpayers who voted for the Forest Preserve referendum would generally understand that to mean the money was to be spent to acquire Forest Preserve land and to make improvements on Forest Preserve land.
A follow up letter asking where the $2 million for the City of Aurora’s River Edge Park could be found in the 2012-2013 budget elicited the response that it is part of the $9,610,150.00 in the 7080 Land Acquisition Fund account. There is no separate line item, or description of that $2 million for the bridge in the budget. Nor was there an adequate response to a FOIA request for
“any legal citation, case law, or legal opinion that authorizes or supports the diversion of 2007 referendum funds approved by taxpayers for the acquisition and improvement of Forest Preserve land for use by another governmental entity on land not owned by the Forest Preserve, specifically the City of Aurora’s River Edge Park.”
They simply cited the Intergovernmental Cooperation Act that says public agencies may exercise their powers jointly to perform their functions or provide services except where specifically prohibited by law. Given that slim justification, it appears that they believe the Forest Preserve District can spend or give away referendum funds at their discretion as long as there is no specific law against it. We disagree.
The Forest Preserve District has participated in the design and construction of a number of projects with cities and villages in Kane County, including funding. In most cases, however, the source of the funds was the Fox River Trust Fund, not Forest Preserve Funds. The Fox River Trust Fund was established as part of a deal between the Forest Preserve District, the City of Elgin, and the Grand Victoria Casino. The riverboat casino contributed some $6 million to the fund beginning in 1994. The Kane County Forest Preserve District administers the fund, providing grants for river bank stabilization, river enhancement, and other community projects centered on the Fox River. A total of $5,921,039.49 has been spent to date. The March 31, 2013 Fox River Trust Fund Report listed a remaining balance of $659,733.24 on the original $6,000,000 principal amount and $580,772.73 in interest. Of that balance, $185,000 is committed to Fabyan Shoreline improvements, leaving $474,850 still available.
It seems unusual, then, for the FPDKC to agree in 2010 to “donate” $2 million for construction of a bridge in an Aurora city park using Forest Preserve funds rather than Fox River Trust Funds. Shortly thereafter, in January 2011, the District passed Resolution No. FP-R-01-11-2042 stating that there were not sufficient funds to continue the land acquisition and improvement program, and that it was necessary and in the best interests of the District to borrow an additional $30,000,000 (the 2011 referendum). The referendum passed. One can only speculate as to whether the outcome would have been the same if the voters knew that the District had just given away $2 million from the last referendum.
At the same February 13, 2013 Forest Preserve meeting where the transfer of funds from the Land Acquisition Fund to the Construction and Development Fund paved the way for the $2 million payment to Aurora for their pedestrian bridge, Commissioners voted to demolish the concrete portion of the 100+ year- old Fabyan Forest Preserve bridge across the Fox River that was closed last year after a large crack developed. Representatives of the Friends of the Fabyan Preserve group, which had complained about a lack of maintenance on the bridge and adjacent causeway, said they were willing to drop their opposition to demolition of the bridge if there were plans for a suitable replacement bridge. President Hoscheit indicated that there was no money to replace the bridge in the near future. In a 2-15-13 Daily Herald article, he was quoted as saying,
“We’re talking in the millions of dollars in terms of cost to do that. At this point, we don’t have the resources for it.”
Perhaps they would have had the resources if they had not given the money to Aurora for a bridge in a city park. The new budget approved by the District in May now includes $495,000 for repair and replacement of the Fabyan bridge, as reported by James Fuller in a 5-18-13 Daily Herald article.
So $2,000,000 of referendum money approved by the taxpayers of Kane County for the acquisition and improvement of Forest Preserve land has been diverted for the construction of a bridge in Aurora’s River Edge Park. And this was accomplished with a minimum of discussion and publicity, and with minimal documentation in either the minutes or the budget. While River Edge Park may be a laudable economic development project that will provide river front amenities to the residents of Aurora, it requires a considerable stretch of the imagination to make it fit the mission of the Forest Preserve District, which is to preserve the natural lands of Kane County.
In an interesting sidebar, the Aurora Beacon News reported on April 17, 2013 that the City of Aurora now wants to amend an agreement with the Fox Valley Park District that would close the Fox River Trail up to five times per year during peak concert events to provide additional capacity in the River Edge Park. Bicycle riders and pedestrians would be detoured to the west river path.