+

16-17 Budget

Board MeetingAugust 17, 2016

+Presentation Overview

n Legal Requirements for Budget Adoption

n Tentative Budgeted Revenues

n Tentative Budgeted Expenditures

n Kennedy Construction

n Fund Balances

+Legal Requirements for Budget Adoption

n School Districts must adopt a budget by September 30th of every fiscal year

n 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 (ours is scheduled for September 21, 2016)

3 Publish a “Notice of Public Hearing” in a newspaper of general circulation within the District (currently scheduled for August 18, 2016 – In Chicago Tribune; August 25, 2016 – Franklin Park Herald)

4 Conduct a Public Hearing on the date and time specified in the “Notice of Public Hearing”

+Tentative Revenues 2017

+Overview of Revenues

n Revenues allocated to District funds are based on Accounting Standards

n Revenues are derived from four sources;n Local

n Property Taxes, Corporate Personal Property Replacement Tax (CPPRT), Tuition, Fees, Earnings on Investments, Food Service, Other

n Flow Through

n State or Federal – IDEA

n State

n General State Aid (Unrestricted) and Categorical (Restricted)

n Federal

n Title I, Title II, LIPLEDS, National School Lunch Program

+Budget to Budget Comparison All Operating Funds (Excludes Debt Service)

72%

21%

7%

Revenues 2017

Local

State

Federal

+ Revenues – Highlights & Assumptions

n Local – CPI increased by .8% or .008 for 2015 taxes; this represents an slight increase in local revenues to the District

n CPPRT is budgeted at $511K, which is down from the FY 2016 amount of $796k

n State GSA increased $2,880,000 prorated at 92% = $2,649,600. In August, the State announced an under appropriation of Special Education Flow through by $285k. These funds need to be “restricted” from the GSA allocation reducing our unrestricted funds to $2,364,600

n Federal funding is down in all categoriesn The District is anticipating selling bonds for $2.0 million to assist

with Phase II of the Kennedy construction projectn Funds will be transferred from the Education Fund and O & M

Fund to cover our “out of pocket” portion of the Kennedy construction

+Tax Collections Cook County

2015 Levy Collected in 2016 – CPI .8%2016 Levy Collected

in 2017 – CPI .7%

+2015 Final Levy Report

n For Levy Year 2015, EAV dropped to $292,868,466 from $302,810,026 (3.283% decrease)

n Revenues rose by .85% to $12,368,125 from $12,265,799 ($102,326 increase)

n District rates to homeowners went from 5.008 To 5.038 (Original Levy presentation reflected 4.99)

n However – Multiplier dropped from 2.7253 in 2014 to 2.6685 in 2015

n Bond & Interest (non-capped) levy decreased from $2,898,030 in 2014 to $2,386,569 in 2015

+Estimated Cost to Homeowner (EAV Flat)

n 2015 Levy

Home Value: $200,000

Times 10% = $20,000 (Assessed)

Times Multiplier 2.6685

= $53,370.00

Time SD 81 Tax Rate .05038

= SD 81 Tax Levy: $2,688.78

(Does not included Homestead exemption of $7,000)

n 2014 Levy

Home Value: $200,000

Times 10% = $20,000 (Assessed)

Times Multiplier 2.7253

= $54,506.00

Time SD 81 Tax Rate .05008

= SD 81 Tax Levy: $2,729.66

(Does not included Homestead exemption of $7,000)

+Budget to Budget Comparison Education Fund - Revenues

We anticipate revenues to be up 1.2% in the Education Fund due to increased revenue from State Funding – specifically GSA.

+Budget to Budget Comparison Operations & Maintenance Fund - Revenues

We anticipate decreased funding in CPPRT resulting in lower revenues for the O & M fund.

+Budget to Budget Comparison Transportation Fund - Revenues

Since transportation has a healthy starting fund balance of $1.5 million, we reduced CPPRT and moving more to O & M.

+Budget to Budget Comparison All other Funds - Revenues

•Revenues for the Debt Service Fund will be down by $379k due to the payoff of 2003C bonds and refinance savings obtained in May 2016

• IMRF/SS Fund is flat at approximately $447k. The District must contribute 12.5% of CPPRT to this fund based on statutory regulations.

•Capital Projects Fund is funded primarily through fund transfers. Bond proceeds of $7.0 million were transferred into the fund in June of 2016. FY 2017 anticipates transferring $2.0M from Working Cash bond proceeds, $3.0M from the Ed Fund, and $1.0M from O & M.

•Working Cash Fund is flat with local revenues of approximately $19k

+Budget to Budget Comparison Education, O & M, and Transportation

-

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

14,000,000.00

16,000,000.00

Education O & M Transportation

2017

2016

+Tentative Expenditures 2017

+All Operating Fund - Expenditures

+ Expenditures – Highlights & Assumptions

n With our new accounting software (IVisions), the District will have a slight shift in expenditures from Salaries to Benefits as a result of TRS being paid by the Board as written in the contract (shown on next slides).

n The majority of expenditures this year will be seen in the Capital Projects fund – approximately $12.1 million.

n Furniture costs for the new building are included in the Education Fund expenditures.

n An anticipated settlement agreement of $250k has been included in this Budget in the Education Fund

n Approximately $500k in architectural fees is reflected in the O & M fund in addition to two backflow pumps (estimated cost of $100k) to meet certain codes required by the Village.

+Budget to Budget ComparisonEducation Fund - Expenditures

+Budget to Budget ComparisonOperations & Maintenance Fund - Expenditures

+Budget to Budget ComparisonTransportation Fund - Expenditures

We anticipate transportation outside the District to decrease as more special education students will be educated in-District

+Budget to Budget ComparisonCapital Project Fund (60) - Expenditures

+Kennedy ConstructionPhase I, II & III

+Fund Balances

Kennedy Project will require:$2.5 million of Fund Balances in FY 17-18$3.4 million of Fund Balances in FY 18-19

Ending Fund balances will be 37% of Expenditures in FY 2019

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Questions?