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Butler School District 53
Budget Hearing Presentation
Board of Education Meeting
September 17, 2018
Presentation Overview 2
I. Legal Requirements for Budget Adoption & Budget Development Process
II. Overview of Revenues and Expenditures
III. Budget Highlights
IV. Budget Summary
V. Peer Group Comparisons
Section I 3
Legal Requirements for Budget
Adoption
Legal Requirements for Budget
Adoption 4
• School Districts must adopt a Budget by the end of the
first quarter of the fiscal year
• Prior to adoption, a School Board must:
1. Place the Tentative Budget on Public Display for at
least 30 days
2. Schedule a date and time for a Public Hearing on the
Proposed Budget
3. Publish a “Notice of Public Hearing” in a newspaper
of general circulation within the District
4. Conduct a Public Hearing on the date and at the time
specified in the “Notice of Public Hearing”
Budget Development Process 5
Reflects Board of Education & District Goals
Utilizes a Zero-based Budgeting Model
Incorporates Longitudinal Data & Projections
Maintains Strong Educational Services
Supports Instruction, Technology & Professional Development
Supports Special Education Services
Maintains our S & P AAA Bond Rating
Allocates Resources for Capital Improvements
Goal: A “balanced” budget
Section II 6
Overview of Revenues and
Expenditures
Overview of Revenues 7
Revenues allocated to District Funds based on
Accounting Standards
Revenues are derived from four sources:
◼ Local
◼ Taxes, Payments in Lieu of Taxes (CPPRT), Tuition, Fees, Earnings on
Investments, Food Service, Activities, Textbooks, Other
◼ Flow Through
◼ State or Federal
◼ State
◼ General State Aid (Unrestricted) or Categorical Aid (Restricted)
◼ Federal
◼ Unrestricted or Restricted
Major Revenue Sources 8
Operating Funds – Ed, O&M, Trans, IMRF, WC
Budgeted Revenue Allocation by Source
Federal Revenue Other State Revenue 0%Evidence Based
1%Funding Flow-Through 3%
Revenue 0%
Other Local Revenue
8%
Property Taxes 88%
Local Property Taxes--CPI
Year CPI Determined CPI Rate
9
2017 2.1%
2016 2.1%
2015 0.7%
2014 0.8%
2013 1.5%
2012 1.7%
2011 3.0%
2010 1.5%
2009 2.7%
2008 0.1%
2007 4.1%
2006 2.5%
Two Years
Used to
Generate
FY19
Property Taxes
Historical Perspective 10
Percent of Change in December CPI-U for the Last 10 Years
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
0.1%
2.7%
Last 10 yr Average CPI-U for this period is 1.6%
3.0%
Last 5 yr average CPI-U is 1.4%
2.1% 1.7%
1.5% 1.5%
0.8% 0.7%
2.1%
Other Revenue Details 11
88% from Property Taxes (Collected 58.1% in FY18 for 2017 Levy)
Limited $s from State Grants: Transportation, Special Education
EBF Model—Tier 4 (3% of our total revenue)
Funds from Federal Grants at Historic Levels—Title I, Title II & Title IV
Interest Income—Budgeted @ FY18 Level (up slightly from prior year)
Estimated Corporate PPRT in Ed Fund—@FY18 Levels
Contributions from Newsletter Sponsors
Revenue Student Registration, Tech & Kindergarten—Fee Increase
Technology Repair Fees
PTO $25,000 toward New Playgrounds
Transferred $1,000,000 from the Education Fund to Operations & Maintenance, and then to the Capital Projects Fund (legal requirement)
Revenue by Fund 12
Revenue Allocation by Fund
IMRF / SS Capital Projects Working Cash
0%
Fire Prevention & Safety 1%
Educational 85%
Debt Service
Transportation 4%
1% 0%
Tort 0%
0%
O & M 9%
Overview of Expenditures 13
Expenditures allocated to District Funds based on
Accounting Standards
Expenditures are classified by one of 8 objects:
◼ Salaries
◼ Benefits
◼ Purchased Services
◼ Supplies
◼ Capital Outlay
◼ Other Objects (Including Debt and Tuition Payments)
◼ Non-Capitalized Equipment
◼ Termination Benefits
Major Expenditures 14
Operating Funds – Ed, O&M, Trans, IMRF, WC
Budgeted Expenditure Allocation by Object
Non-Capitalized Other Objects Equipment
Termination Benefits 5% 0% 0%
Provision for Capital Outlay Contingencies 2%
3%
Supplies And Materials
5%
Purchased Services 17% Salaries
57%
Benefits 11%
Expenditure Allocation by Fund
15
Education Fund
Operations & Maintenance
Transportation
IMRF/SS
Debt Services
Section III 16
Budget Highlights
Ed Fund Expenditures Highlights 17
Faculty Salary and Benefits 18
New collective bargaining agreement with OBEA.
Average salary increase over five year is 3.5%
Ed Fund Expenditure Highlights 19
Commitment to:
Professional Development $67,600
Commitment to Special Education $1.8M
Instructional Technology $650K ◼ Site Licenses
◼ STEM Lab at Brook Forest
◼ Network Upgrades
◼ Projectors
◼ Chromebooks
Legal Fees $150,000
New Financial Software—Skyward & Transition $82,000
Health Insurance Premiums—10% increase budgeted with 1/1/19 renewal; Insurance “reset” for faculty members & support staff
O&M Fund Expenditure Highlights 20
Architect Fees $140,000 (estimate)
Renovation Account $50,000
Immediate Needs for Repairs & Furniture
Snow Removal $15,000 (purchased service)
Cleaning Contract Renewed for 3 Years at 5%
Fixed Increase for Full Term (Yr. 2)
Parking Lot Reseal & Striping $30,000
Transportation Fund Expenditures 21
Rebid Transportation Spring 2017
Increase of 3% for FY19
Increased fees in FY19
Total transportation expenses increased $100,000
in FY18 over FY17
Capital Project Fund 22
BF New Playground $85,947
BJH New Playground $21,017
BJH Faculty Lounge Remodel $65,000
Projects and Funding Source
Date FY Project & Amount Amount Funding Source
7/18 FY19 Prepare for Summer 2019 $1,000,000 Transfer
6/19 FY20 BJH Air Conditioning, Doors, Electrical
Upgrades, New Chillers, Door Safety
Equipment & Related Work
BF—Door Safety Equipment
$ 1.9M
$1,000,000 Transfer
6/19 FY21 BF Safety Improvements, Tuck Pointing
BJH Tuck Pointing $700,000
$1,000,000 Transfer
2021 FY22 BJH Roof Replacement $1.455M $1,800,000 Bonds
2022 FY23 BJH Boiler Replacement $500,000
TOTAL: $4,555,000 $4,800,000
Section IV 24
Budget Summary
Budget Overview 25
Funds Revenue Expenditures Difference
Education $9,200,875 ($9,975,771) ($774,895)
O&M $1,989,772 ($2,366,574) ($376,802)
Bond & Interest $178,165 ($198,417) ($20,251)
Transportation $398,288 ($524,500) ($126,212)
IMRF $63,672 ($252,273) ($188,600)
Capital Projects $1,030,000 (173,000) 857,000
Working Cash $5,000 --- $5,000
Life Safety $10 --- $10
TOTALS $12,865,783 ($13,490,536) ($624,752)
Contingencies 26
Account Amount
Special Education $100,000
Faculty Salaries $65,000
Education Fund $100,000
O&M Fund $200,000
Transportation Fund $40,000
IMRF/FICA $5,000
TOTAL $510,000
Change in FY18 Property Tax Revenue 27
Property Taxes | Year Over Year Change (%)
10.00%
6.94%
0.00%
1.49%
2.91% 1.88%
-11.90%
-10.00%
-5.00%
0.00%
5.00%
-15.00%
2014 2015 2016 2017 2018 2019 2020
Budget Summary Excluding Transfers 28
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Revenues Expenditures
Historical Year-End Fund Balances 29
$10.57
$8.82
$6.92 $6.65
$6.10
$5.21
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Mil
lio
ns
Year End Fund Balances
Capital Projects30
Budget Summary with Planned Capital Projects
Butler Compared to Peer School Districts
31
Student Spending & Performance 32
D53
Lincolnshire-
Prairieview
Northbrook 27
Entire State… 33
District 53
Budget Goals & Summary 34
Monitor Ed Fund Expenditures & Revenues
Continue to Evaluate Educational Needs Each Year & Adjust Spending
Evaluate Program Offerings, Instructional Staff in Light of Enrollment
Monitor Investments
Monitor Plan for Building Infrastructure Improvements
Continue Preventative Maintenance
Use of “in house” Staff for Repairs/Renovations Plan for the Future with Flexibility
Monitor Capital Improvement Plan
Continue to Align Expenditures to Revenue
The Administration recommends that the FY19 Budget be approved as presented.
Butler School District 53
Budget Hearing Presentation
Board of Education Meeting
September 17, 2018