Butler School District 53. Budget Hearing Presentation Board of Education Meeting September 17, 2018

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1 Butler School District 53 Budget Hearing Presentation Board of Education Meeting September 17, 2018

2 Presentation Overview 2 I. Legal Requirements for Budget Adoption & Budget Development Process II. Overview of Revenues and Expenditures III. IV. Budget Highlights Budget Summary V. Peer Group Comparisons

3 3 Section I Legal Requirements for Budget Adoption

4 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

5 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

6 6 Section II Overview of Revenues and Expenditures

7 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 State or Federal General State Aid (Unrestricted) or Categorical Aid (Restricted) Federal Unrestricted or Restricted

8 Major Revenue Sources 8 Operating Funds Ed, O&M, Trans, IMRF, WC Budgeted Revenue Allocation by Source Evidence Based Funding 3% Other Local Revenue 8% Federal Revenue Other State Revenue 0% 1% Flow-Through Revenue 0% Property Taxes 88%

9 Local Property Taxes--CPI 9 Year CPI Determined CPI Rate % % % % % % % % % % % % Two Years Used to Generate FY19 Property Taxes

10 Historical Perspective 10 Percent of Change in December CPI-U for the Last 10 Years 3.5% 3.0% 2.7% Last 10 yr Average CPI-U for this period is 1.6% 3.0% 2.5% Last 5 yr average CPI-U is 1.4% 2.0% 1.5% 1.7% 1.5% 2.1% 2.1% 1.5% 1.0% 0.8% 0.7% 0.5% 0.1% 0.0%

11 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 FY18 Level (up slightly from prior year) Estimated Corporate PPRT in Ed 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)

12 Revenue by Fund 12 Revenue Allocation by Fund IMRF / SS Capital Projects 1% 0% Transportation 4% Debt Service 1% O & M 9% Working Cash 0% Tort 0% Fire Prevention & Safety 0% Educational 85%

13 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

14 Major Expenditures 14 Operating Funds Ed, O&M, Trans, IMRF, WC Budgeted Expenditure Allocation by Object Non-Capitalized Other Objects Equipment 5% Termination Benefits 0% 0% Capital Outlay 2% Supplies And Materials 5% Provision for Contingencies 3% Purchased Services 17% Salaries 57% Benefits 11%

15 Expenditure Allocation by Fund Operations & Maintenance Transportation IMRF/SS Debt Services Education Fund 15

16 16 Section III Budget Highlights

17 17 Ed Fund Expenditures Highlights

18 Faculty Salary and Benefits 18 New collective bargaining agreement with OBEA. Average salary increase over five year is 3.5%

19 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

20 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

21 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

22 Capital Project Fund 22 BF New Playground $85,947 BJH New Playground $21,017 BJH Faculty Lounge Remodel $65,000

23 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

24 24 Section IV Budget Summary

25 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, $5,000 Life Safety $ $10 TOTALS $12,865,783 ($13,490,536) ($624,752)

26 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

27 Change in FY18 Property Tax Revenue 27 Property Taxes Year Over Year Change (%) 10.00% 6.94% 5.00% 0.00% 0.00% 1.49% 2.91% 1.88% -5.00% % % %

28 Budget Summary Excluding Transfers 28 Revenues Expenditures $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

29 Historical Year-End Fund Balances 29 Year End Fund Balances Millions $12.00 $10.00 $10.57 $8.82 $8.00 $6.00 $6.92 $6.65 $6.10 $5.21 $4.00 $2.00 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

30 30 Budget Summary with Planned Capital Projects Capital Projects

31 31 Butler Compared to Peer School Districts

32 Student Spending & Performance 32 Northbrook 27 Lincolnshire- Prairieview D53

33 Entire State 33 District 53

34 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.

35 Butler School District 53 Budget Hearing Presentation Board of Education Meeting September 17, 2018

December 10, Butler School District 53 1

December 10, Butler School District 53 1 December 10, 2018 Butler School District 53 1 Key Terms Aggregate Levy annual corporate levy other than debt service Debt Service Levy made to retire the principal or pay interest on bonds Property Tax