Geneva Community Unit School District 304 Geneva, IL Kane County BUDGET July 1, 2016 to June 30, 2017

Transcription

1 Geneva Community Unit School District 304 Geneva, IL Kane County BUDGET July 1, 2016 to June 30, 2017 Presented to the Board of Education July 25, 2016

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3 #Keep Moving Forward

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5 Geneva Community Unit School District Budget Table of Contents Introductory Section Executive Summary Letter to the Board of Education Mission and Vision Goals and Initiatives Budget Process Budget Policy Change Staffing Plan Budget Calendar Board of Education Profile of School District Leadership Aggregate Projection Summary Revenue Expenditures Fund Balances Budget Forecast Enrollment Trends Property Taxes Tax Caps Cost per Pupil Personnel Personnel Resource Changes Current and Long Term Debt Other Organizations Benchmark Data Performance Results i

6 Organizational Section The District Entity Legal Autonomy Fiscal Independence District Size and Scope District School Buildings Building Information District Map Organizational Chart Profile of School District Leadership Board of Education Mission and Vision Goals and Initiatives Certificate of Excellence Meritorious Budget Financial Profile District Budget Policies and Process Budget Preparation Policy Investment Policy Budget Policy Change State Budget Requirements Budget Adoption and Publication Cash Management Risk Management/Insurance Capital Assets Bond Issuance Facility Plan Budget Additions/Changes Individual Fund Analysis Education Fund Operations and Maintenance Fund Debt Service Fund ii

7 Transportation Fund Municipal Retirement/Social Security Fund Working Cash Fund Tort Immunity Fund Fire Prevention and Safety Fund Fund Structure and Measurement Basis Governmental Funds Special Revenue Funds Fiduciary Funds Account Structure Fund Balances Budget Development Process Budget Calendar Budget Management Process Other Revenues Financial Section Summary of All Funds Fund Accounting Governmental Funds Summary of Fund Balances All Government Funds Summary of Operations Funds Operating Funds Summary of Individual Funds Educational Fund Operations and Maintenance Fund Debt Service Fund Transportation Fund Municipal Retirement/Social Security Fund Working Cash Fund Tort Fund iii

8 Fire Prevention and Safety Fund Summary by Program and Object All Government Funds Fund Structure and Management Basis Fund Balances Capital Plan Facility Capital Plan Buildings Owned by the District Summary of Capital Plan Capital Plan by Building Summary of Completed Capital Plan Projects Technology Plan Informational Section Property Taxes Equalized Assessed Valuation Tax Caps Property Tax Rate History PTELL Formula Maximum and Extended Tax Rates Property Tax Rates Alternative Tax Collections Tax Rate Effect on Average Homeowners Enrollment Methodology Enrollment Tables by District and Building Personnel Contract Salary Increases and Length of Contract Outstanding Bonds Bonded Debt Amortization Schedules Benchmark Data Performance Results Other Information Glossary iv

9 INTRODUCTORY SECTION BUDGET GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 GENEVA, ILLINOIS

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11 EXECUTIVE SUMMARY BUDGET GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 GENEVA, ILLINOIS 3

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13 This Meritorious Budget Award is presented to GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 for excellence in the preparation and issuance of its budget for the Fiscal Year The budget adheres to the principles and standards of ASBO International s Meritorious Budget Award criteria. Brenda R. Burkett, CPA, CSBA, SFO President John D. Musso, CAE, RSBA Executive Director 5

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15 227 N.227 North Fourth Street Geneva, Illinois Office: 630/ Fax: 630/ Community Unit School District 304 July 25, 2016 Mr. Mark Grosso, President Members of the Board of Education Geneva Community Unit School District North Fourth Street Geneva, Illinois Dear Mr. Grosso and Members of the Board: The Fiscal Year annual budget for Geneva Community Unit School District 304, Geneva, Illinois is hereby submitted for your review. The District Superintendent and Assistant Superintendent for Business assume responsibility for data accuracy and completeness. The budget presents the District s finance and operations plan, and all necessary disclosures. The budget is based on the educational goals of the District as well as the financial goals of the Board of Education and provides all of the necessary data to understand the District s financial position as well as its goals and objectives for the school year. The budget includes the operating, working cash, and debt service funds for the District. Capital Projects and Fire Prevention and Safety do not have funds budgeted for this year. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included. The budget supports the District s goals and objectives as presented in the Board of Education Purpose, Goals, and Administrative Action Plan. The budget document and the Comprehensive Annual Financial Report are the primary vehicles to present the financial plan of Geneva Community Unit School District 304. The budget process is a collaborative effort that includes administrators, teachers, and board members. Initiatives for this year include: The continuation of the 1:1 initiative, supporting students in Grades 1,4,6,9, and 10, as they develop technology skills that will keep them innovated and moving forward in today s global environment; 7

16 Professional development and guidance for teaching staff as the district implements the Next Generation Science Standards (NGSS). In the traditional science lesson, information is presented and the student proves the lesson. In the NGSS lesson, the student is the driver by experiencing the information and then reporting on the findings. The teacher is the facilitator in the process. At Geneva High School, through collaboration with the Regional Office of Education and Mid- Valley Special Education Cooperative, the District has implemented the Alternative Learning Opportunities Program (ALOP). This program provides students in grades 9 through 12 who are at risk of academic failure with a broader range of academic, behavioral and social-emotional interventions needed to meet the Common Core State Standards and complete their education in a highly structured learning environment. Services are designed to address individual learning styles and social emotional needs to enable students to successfully complete their education. The budget document is presented in four main sections: Introductory Section, Organizational Section, Financial Section, and Informational Section. The Introductory Section provides an executive summary of the sections to follow. The Organizational Section includes the District s goals and objectives, and a review of the budget process. The Financial Section presents the annual budget of revenues and expenses for all funds, including budget comparisons with the previous year. The Informational Section presents historical and projected information and data relative to the successful operation of the District. The Annual Budget has been prepared to provide a comprehensive financial presentation to our Board of Education, local citizens and interested outside parties. We extend our appreciation to the members of the Board of Education for their interest and support in planning and conducting the financial operations of Geneva Community Unit Schools District 304 in a responsible and effective manner. We will continue long term financial planning with our advisors and Financial Task Force to ensure the financial future of our district. Continued efforts for cost containment and effective planning will be a primary goal to continue the Tradition of Excellence for all students. Geneva Community Unit School District 304 will continue to excel in financial reporting through the Comprehensive Annual Financial Report, ISBE Financial Recognition, fiscal transparency, and financial accountability. Respectfully, Dr. Kent Mutchler Superintendent Donna Oberg Assistant Superintendent for Business, CSBO 8

17 Mission and Vision The purpose of Geneva Community Unit School District 304 is to educate students within an environment that encourages the desire to learn and enhances the teaching of skills necessary to meet the unique academic, personal, physical, and social needs of each individual. The school program will reflect the values and ambitions of the community, and every student will be challenged to develop intellectual and learning skills to his/her fullest potential, preparing him/her to become a contributing member of society. The students of today are living in a truly globalized society, one in which they are able to consume, produce, and disseminate information in ways that we could not even imagine just a decade ago. As educators, we are tasked with preparing students for jobs and technologies that have, in all likelihood, yet to be invented. The employers of tomorrow will be looking for complex and creative thinkers and adaptable and agile learners. We must look beyond the content to ensure that our students have the skills they need to succeed in an ever-changing, increasingly competitive world. This year, our theme is #KeepMovingForward. To us, this means building growth mindsets not only in our students, but also in our staff. Change can be hard, especially for those who are set in their ways. However, the I ve always done it this way and it s always worked fine mentality keeps us from growing. It prevents us from innovating and adapting two essential skills that we must be modeling for our students. In Geneva 304, we empower our staff and our students to challenge themselves, take risks, and to learn and grow from their failures. Failure is a key to building curiosity, self-direction, creative and adaptive thinking, and resilience. These are skills that students will need to survive in the New World of Work. The common vision of all members of Geneva School District 304 is to assist every student to become: Self-directed, life-long learners who enjoy the challenge of learning; are self-confident and goaloriented; and demonstrate physical, emotional, and intellectual well-being. Effective communicators who access, interpret, and respond to information by reading, listening, and questioning; convey meaning in writing, verbally, visually, numerically, and artistically; and use appropriate technology. Complex, creative, and adaptive thinkers who apply academic knowledge, skills, and strategies to gather and interpret information to solve problems; create intellectual, artistic, and practical products which reflect quality and originality; and analyze the effectiveness of their decisions and solutions. Collaborative workers/citizens who recognize the advantages of diversity and cooperation; show concern, tolerance, and respect; demonstrate leadership and/or group skills; demonstrate actions that mutually benefit self and others; and assume responsibility for their actions, locally and globally. Our vision for students is made of four primary components that align to the needs of the modern workforce. It is our hope that achieving these skills, students will become self-evolving learners who are capable of embracing and capitalizing on constant change- the way of the future. Goals and Initiatives The District develops goals and initiatives for reading, problem solving and success for all students. These primary goals and supporting action plans aim toward high expectations for student achievement, are data-driven, and provide a focus for education in Geneva. The Board of Education goals and objectives are to: Continuously improve the caliber, content and assessment of instruction through the regular 9

18 review of student learning and instructional methods Maximize learning and teaching through the integration of technology Develop strategies to ensure sufficient resources are available and effectively managed Develop, utilize, and maintain facilities that serve the District s curriculum and programming and provide the necessary infrastructure to meet the needs of the students Provide a safe and secure educational environment for students Actively recruit, train, and promote quality administrators, teachers, and staff. Provide all staff with continuing opportunities for professional growth. Improve communication and interaction with the community to foster shared goals, values, trust, and support District 304 s departments are both informed and vested in their specialized roles to achieving the District goals. Communicating the progress toward these goals is essential for ongoing improvement. Learning and Teaching Continuously improve the caliber, content and assessment of instruction through the regular review of student learning and instructional methods Geneva School District 304 values accountability and believes it is important to assess the progress of students, staff, administrators, and the district as a whole so that we can continually improve. Recognizing that students learn and process information in vastly different ways, we believe it is important to take into account a variety of measures when determining student growth. Standardized assessments are important for benchmarking student performance, but they simply are not capable of measuring some of the important 21 st century skills that we aspire to in our vision. As a district, it is incumbent upon us to continually be looking for new and better ways to measure student growth. Teacher observation, student work and self-reflection, and 21 st century skills rubrics also must play important roles in the overall assessment of a student s growth and potential. School has never been about just the content. If we are to truly ensure that our students are ready for college, career, and civic life, we must continue to develop ways to assess important real-world skills such as collaboration, creativity, initiative and self-direction, and leadership and responsibility. Technology Integration Maximize learning and teaching through the integration of technology The Geneva School District 304 technology plan continues to focus on enhancing the learning environment. At the start of the school year, the district successfully distributed :1 devices to students in grades 6, 7, 9, and 10. It also consolidated existing devices to ensure full classroom sets of computers for students in grades 3-5. Over the next two years, new devices will be issued in such a way that every K-12 student in Geneva will have access to a device by the school year. Elementary students will have access to an age-appropriate device during the school day and middle school and high school students will be assigned a device that they will be able to take to and from school. In order to ensure that this technology is integrated into the curriculum in a meaningful way, the district has made professional development a fundamental component of the rollout. The phased rollout approach allows the district to effectively engage teachers in ongoing professional learning and supports them as they work to shift their practice. Financial Accountability Develop strategies to ensure sufficient resources are available and effectively managed 10

19 It is important to Geneva School District to maintain the public s trust as good stewards of resources. We maintain financial accountability through: Transparency The district posts its annual budget, administrator and teacher salaries, contracts over $25,000, and all bills payable on its website. Economy The district works very hard to find the best solutions at the lowest cost. All bids for contractual services or equipment are thoroughly evaluated to determine the most efficient use of resources. Additionally, the district continually investigates new ways to save money by finding efficiencies in current operations. Oversight The district submits to rigorous oversight by several bodies. In 2016, Geneva School District had high financial ratings from numerous agencies. These include: AA+ Stable Bond Rating from Standard and Poor s Aa2 Bond Rating from Moody s Investor Services ISBE 2016 Financial Profile Recognition, the highest category of financial strength ASBO Meritorious Budget Award ASBO Certificate of Excellence in Financial Reporting Long-Term Debt Restructuring In 2016, the Geneva Board of Education refunded (refinanced) $32,440,000 in bonds, which not only saves the district substantial interest fees, but also keeps the Debt Service payments level. Without the refunding, Debt Service payments would have increased from $15 million per year to nearly $25 million per year. Since the property tax rate is partially based on the Debt Service payments, the refunding prevents the property tax rate from increasing significantly. Since 2011, the district has abated nearly $24 million to taxpayers, which has helped to keep the property tax rate for Debt Service relatively flat. Contract Negotiations The Board of Education and the Geneva Education Association (GEA) thoughtfully negotiated to reach a teacher contract that is both fair and sustainable. The contract approved in 2015, ties future raises to an economic indicator (Consumer Price Index) and establishes a committee to revise the current step system to make it more sustainable for the community. The committee, which is comprised of board members, district administrators, and members of the GEA, is committed to developing a compensation model, which reflects the interests and values of both the Board and the GEA. Efficiencies in Transportation The Transportation Department continually reviews and modifies bus routes and scheduling in order to make them as efficient as possible. The District participates in a bus buy-back program, which saves money and ensures the district has buses with the most up-to-date safety features. In 2016, the District reduced outsourcing for special needs transportation. Although there was an initial cost to purchase four new lift buses, providing our own transportation for special needs students will result in a cost savings of approximately $881,435 over a five-year period. In addition to the cost savings, the District is able to provide a consistent and less stressful transportation experience for our students with special needs. Operational Services Develop, utilize, and maintain facilities that serve the District s curriculum and programming 11

20 and provide the necessary infrastructure to meet the needs of the students Capital Improvement Plan Geneva School District strives to maintain facilities and grounds that the community can be proud of and that are safe and secure for our students and staff. Each year, staff members analyze the condition of district facilities and grounds and prioritize capital improvements based on cost, need, and efficiency. In recent years, this analysis has taken the form of a capital improvement plan that is updated annually. The following capital improvement projects were completed between 2015 and 2016: Geneva High School Modular Classroom Geneva High School Steam Line Replacement Geneva High School Secondary Pumps Geneva High School Flooring Replacement Middle School Health/Life Safety Repairs Geneva Middle School South Door Installation Western Avenue Elementary Replacement of Chiller, Variable Frequency Drives, and Secondary Pumps Mill Creek Elementary Replacement of Variable Frequency Drives and six Air Handling Units Fabyan Elementary Replacement of Terrazzo Floor Tile Installation of Emergency Generators at Transportation and District Office Transportation Carpet Replacement Student Health and Well Being Provide a safe and secure educational environment for students Supporting Our Students Social and Emotional Needs Geneva 304 will continue to service the individual social, emotional, and academic needs of every student. We are committed to providing research-based interventions and supports to students who have deficits in specific areas. This is done through a strategic problem-solving process. The students in today s classrooms are faced with ever-increasing standards, constantly changing technology, and a world full of complex and often difficult issues. Geneva 304 will nurture the social and emotional needs of students so they can successfully cope with these demands as they strive to reach the tenets of our vision. Not only does social and emotional learning have a positive impact on workforce readiness, school attendance and graduation, life success, college preparation, and academic success (Adams, 2014), but it also helps maintain student mental health and well-being. Geneva Community Unit School District 304 provides instruction and supports aligned to the Illinois Social and Emotional Learning (SEL) Standards. Some supports are provided to all students, while others are provided to students who have demonstrated a need for specific interventions in the social-emotional arena. Additionally, the Geneva School District has combined efforts with the St. Charles School District, Batavia School District, Burlington Central School District, and Kaneland School District to collaborate with mental health providers in the surrounding area. On a monthly basis, staff from Geneva s Student Services Department has the opportunity to discuss positive steps that can be taken in response the mental health crisis at the state and national level. In 2016, Geneva administrators completed a Mental Health First-Aid training to ensure they are prepared to identify and assist students who are in or are headed toward a mental health crisis. 12

21 Through collaboration with the Regional Office of Education and Mid-Valley Special Education Cooperative, the District has implemented the Alternative Learning Opportunities Program (ALOP). This program provides students in grades 9 through 12 who are at risk of academic failure with a broader range of academic, behavioral and social-emotional interventions needed to meet the Common Core State Standards and complete their education in a highly structured learning environment. Services are designed to address individual learning styles and social emotional needs to enable students to successfully complete their education. Geneva Community Unit School District 304 will continue to explore strategies and programs to enhance students' social and emotional stability. Skills in this arena will assist students in reaching their goals as 21st Century learners. Ensuring Student and Staff Safety Geneva School District is committed to making our buildings safe and secure for every student and staff member. In preparation for the school year, a diverse team of Geneva staff members attended the four-day Multi-Hazard Emergency Planning for Schools training at the Federal Emergency Management Agency (FEMA) Training Facility in Maryland. In collaboration with local first responders, the team assessed the district s emergency response plans and identified areas for improvement. The District continues to enhance our emergency preparedness by providing ongoing training of administrators, faculty, and staff through presentations, tabletop scenarios, and drills. The District continues to foster close working relationships with our first responder partners. At the beginning of the school year, we met with the Geneva Police Department and local fire departments to review our emergency response plans at each building. The district continues to seek out safety and security grants to help finance the cost of safety and security upgrades at our buildings. High Quality Staff Actively recruit, train, and promote quality administrators, teachers, and staff. Provide the District s administrative and instructional staff with continuing opportunities for professional growth. Teacher Mentoring and Induction Research shows that high quality mentoring and induction programs for new teachers, aids in the development of leadership skills, and an improvement in student success. In , District 304 hired 51 new licensed staff members mostly due to district retirements. Geneva School District is committed to providing all new teachers a comprehensive mentoring and induction program that prepares new teachers for effectiveness. In addition to a variety of orientations, new Geneva teachers also attend a four-day New Teacher Institute at the beginning of the school year. Sessions include introducing new teachers to the history and tradition of the school district, school district curriculum, student health protocols, and building practices and procedures. All teachers new to Geneva School District are also paired with an experienced teacher who offers practical and timely perspective and support during the school year. These practices improve teacher retention, helps create a collaborative culture, and drives system-wide alignment, which also saves money. Most importantly, they ensure that every child in Geneva has a great teacher! Teacher Evaluation District 304 staff finished the work of overhauling the teacher evaluation plan in order to comply with the Performance Evaluation Reform Act (PERA) of The district is in its fifth year implementing the new performance standards, and a committee has worked to implement the final and most significant change 13

22 required by PERA, that of incorporating student growth achievement into teacher evaluation. Members of the Teacher Evaluation Committee, which is comprised of district teachers and administrators, worked collaboratively to finalize the plan to incorporate student achievement growth into teacher evaluation and engaged staff in professional development to implement the plan. Our hope is that increased analysis of local student assessment data as well as collaboration among teachers will not only meet the new requirements under the law but continue to improve both teaching and learning in District 304. Ongoing Professional Development Geneva School District knows that teachers continually need to develop their knowledge to enhance teaching and student learning. The District provides many opportunities for teachers to learn, share, and collaborate throughout the year. One particularly successful program is the Collaborative Teacher Project (CTP), an ongoing program that focuses on teacher-driven learning, collaboration, and discussion. In , 154 teachers are participating in a CTP group to improve their knowledge base and enhance the learning experience for their students. Family/Community Engagement Improve communication and interaction with the community to foster-shared goals, values, trust, and support. Geneva School District believes authentic community engagement is an essential component of a thriving school district. The Board of Education and the Communications Task Force continue to implement new ways to enhance community involvement and find new ways to reach all of our stakeholders. One of the Board s primary goals for the school year is to focus on establishing an enhanced plan for engaging community members in a two-way communication process to inform decision-making and further achieve transparency. In , the Board began the Community Engagement Process through the Illinois Association of School Boards (IASB). It continues its work with IASB in to identify diverse voices and to ensure that those voices are represented in the decision-making process. 14

23 Budget Process The budget development is a year round process. Many levels of input and decision making from staff members, administrators, and the Board of Education goes into the development of the budget. The criteria for the budget are: Goals and priorities of the Board of Education Mandates by the State and Federal governments Programs of Instruction Facility Capital Improvement Plan Technology Plan Staffing Plan Contractual agreements As these areas are discussed and plans are approved, the budget is presented in tentative form to the Board of Education for approval of adoption in September. The budget was developed using the most current information available at this time. The budget is the guideline for all expenditures within the district. Budget Policy Change The Board of Education adopted a policy for Debt Management to provide guidelines relative to the issuance, sale, statutory compliance and investment of bond proceeds. The Board recognizes that the foundation of any well-managed debt program is a comprehensive debt policy. The District is in the process of refunding callable bond issues for a cost savings and to level debt service payments. Currently debt service payments are scheduled to increase substantially over the next few years. The payments were laddered to coincide with new growth however, due to the economy, new growth did not keep pace with the increase. The District refunded $32,390,000 of higher interest debt in December 2016 and is scheduled to complete an additional refunding in December 2017 for a savings of approximately $6 million and leveling off payments at $15 million per year. Staffing Plan As a school district, we want our students to become self-directed, lifelong learners; effective communicators; complex, creative and adaptive thinkers; and collaborative and productive citizens. We have identified four strategic goals that will help realize this vision for students: An educational setting where teacher and principal quality is expected, encouraged and rewarded A safe, nurturing environment where the social-emotional needs of children are affirmed and valued A technology program that transforms the learning process and prepares students for the future An Operations department which develops, utilizes and maintains the facilities that provide the necessary infrastructure to meet the needs of students The District has identified staffing priorities in each of these strategic goal areas and are responsive to the changes thrust upon us by the Federal government, Illinois General Assembly, Illinois State Board of Education and by societal and community expectations. This year the district added several positions to accomplish this vision: Science Instruction Facilitator K-12 Like the Common Core standards, the Next Generation Science Standards (NGSS) were developed by a consortium of states and released in The Illinois State Board of Education 15

24 formally adopted the NGSS as the Illinois Learning Standards in Science in 2014 with an expectation for full implementation by Illinois school districts beginning in the 2016/2017 school year. Unlike Illinois former science standards which provided little more than generalized benchmarks for grade spans, the new standards not only represent a significant increase in rigor but also note specific performance expectations for each grade level. In addition, it is important to note that these standards are organized in a three-dimensional architecture that integrates explicit content, scientific practices, and cross-cutting concepts into a broad, complex system. Instructional Coaches High School The District currently utilizes four certified teachers to provide direct support to teachers in the area of technology integration. One of the technology facilitators is also responsible for managing and supporting the District s Assistive Technology program for special needs students. Most of the professional development provided to teachers is accomplished by pulling teachers out of their classrooms during the school day and, while substitute teachers cover classrooms, the technology facilitators engage the teachers in professional development related to curriculum and technology integration. Growth in the amount of technology and the expectation for teachers and students to use that technology requires more staff to provide real-time professional development, instructional support, modeling of best practices and the time needed to stay abreast of current technologies. The technology capital plan includes proposals for additional portable devices at multiple levels, including 1:1 technology expansion at Geneva High School. Psychologist Elementary As a result of contract negotiations between the Board of Education and the Geneva Education Association in 2012, a committee of teachers and administrators was formed to: evaluate the service delivery model for student services at all levels; develop consistent and coherent job descriptions for psychologists, social workers, and guidance counselors; determine the role of psychologists, social workers, and counselors in the problemsolving process, special education process, and the Section 504 eligibility and entitlement process; evaluate District resources and programs to provide students with consistent socialemotional support. Based on the work of the committee, the Board approved an additional psychologist at the elementary level. HVAC Certified Position - District An HVAC certified staff member with electrical and refrigerant certification would reduce the cost of outsourced repairs to the HVAC systems within district buildings. The cost of adding an HVAC Certified Position is estimated to reduce the cost of outsourcing the repairs and have a person available and in our buildings every day. The financial cost of these positions was offset by grants funds and contract cost savings. 16

25 Budget Calendar Budget Calendar for October 13, 2015 October 26, 2015 November 3, 2015 November 23, 2015 November 23, 2015 December 29, 2015 January 2016 February 2016 March 2016 July 25, 2016 July 28, 2016 July 25, 2016 September 12, 2016 September 12, 2016 September 15, 2016 Board of Education review of debt structure Board of Education adopts Resolution to levy 2015 Property Taxes (Not less than 20 days prior to tax levy adoption) (35 ILCS 200/18-60) Publish notice for tax levy hearing (not more than 14 days nor less than 7 days prior) (35ILCS 200/18-80) if needed Board of Education Public Hearing on 2015 Tax Levy (35 ILCS 200/18-70) if needed Board of Education adopts the 2015 Tax Levy Tax Levy must be filed with County Clerk by last Tuesday in December (105 ILCS 5/17-11) Budget materials distributed to Administrators Preliminary Budgets due to Business Office Tentative Budgets distributed to Administrators Present budget in tentative form to Board of Education Publish Notice for budget hearing (no less than 30 days prior to Public Hearing) (105 ILCS 5/17-1 Board of Education adopt budget in tentative form and establish date of Public Hearing Board of Education to hold Public Hearing on proposed budget Board of Education adopt budget by Resolution (meets legal requirement to adopt budget by end of first quarter fiscal year) (105 ILCS 5/17-1 Budget for Fiscal Year filed with Kane County Clerk Bold indicates key Board of Education action dates 17

26 Geneva Community Unit School District 304 Board of Education The Board of Education is a seven-member board made up of residents of the Geneva community. Members are elected by the public, serve four-year terms, and are not compensated for their service to the School District. The seven current members of the Geneva School District Board of Education have served the students of Geneva for a collective 45 years and have careers and/or backgrounds in finance and commercial banking, investing, construction management, nursing, law, education, and management. Board President Mark Grosso April 2009 April 2017 Board Vice President Kelly B. Nowak April 2007 April 2019 Leslie Juby April 2013 April 2017 David Lamb April 2013 April 2017 Mike McCormick April 2011 April 2019 Mary Stith April 2003 April 2019 Bill Wilson Nov April

27 GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 PROFILE OF SCHOOL DISTRICT LEADERSHIP BOARD OF EDUCATION Mark Grosso... Board President Kelly B. Nowak... Board Vice President Leslie Juby... Member David Lamb... Member Michael McCormick... Member Mary Stith... Member William Wilson... Member EXECUTIVE TEAM Dr. Kent Mutchler... Superintendent Donna V. Oberg... Assistant Superintendent-Business Services Dr. Adam Law... Assistant Superintendent-Human Resources Dr. Andrew Barrett... Assistant Superintendent-Learning and Teaching Shonette Sims... Director of Learning and Teaching Scot Ney... Director of Facility Operations Michael Wilkes... Director of Technology Mary Dunmead... Director of Transportation Anne Giarrante... Director of Student Services Jamie Benavides... Assistant Director of Student Services Todd Latham... Coordinator of Business Services Stephanie Martin... Early Childhood Coordinator Kristy Poteete-Kriegermeier... Communications Coordinator BUILDING PRINCIPALS Thomas Rogers... Geneva Community High School Larry Bidlack... Geneva Middle School-North Terry Bleau... Geneva Middle School-South Darcy Thompson... Fabyan Elementary School Brenna Westerhoff... Harrison Street Elementary School Kimberly Hornberg... Heartland Elementary School George Petmezas... Mill Creek Elementary School Dr. Julie Dye... Williamsburg Elementary School Ronald Zeman... Western Avenue School 19

28 Aggregate Projection Summary 20

29 Revenue Change Actuals Actuals Budget $ % Local Property Taxes 81,808,495 81,098,360 84,040,629 2,942, % CPPRT 989, , ,000 4, % Tuition 58,107 35,046 59,000 23, % Fees 1,127,955 1,408,609 1,461,500 52, % Interest 106, , ,565 (5,448) -4.9% Food Service 1,407,702 1,294,109 1,358,300 64, % Other 985, , ,500 14, % Total Local 86,483,112 85,669,511 88,765,494 3,095, % State General State Aid 2,065,167 2,301,663 2,299,000 (2,663) -0.1% Categoricals 1,983,892 2,027,129 1,731,368 (295,761) -17.1% State Transportation Reimbursement 1,042,590 2,213,116 2,100,000 (113,116) -5.4% Total State 5,091,649 6,541,908 6,130,368 (411,540) -6.3% Federal - Grants 1,601,727 1,755,144 1,574,816 (180,328) -10.3% Total Federal 1,601,727 1,755,144 1,574,816 (180,328) -10.3% - Total Revenues 93,176,488 93,966,563 96,470,678 2,504, % Funds to operate the District and to educate our students come from four sources: Local. State, Federal, and Other. For the school year, the revenue budget for all District funds totals $96.5 million. This is an increase of 2.7% from the revenues received. Local The primary source for local funds is property taxes, which is 87.1% of total revenue. In 1991, legislation passed the Property Tax Extension Limitation Law better known as PTAB. This law limits the amount a local government can assess on property owners based on Consumer Price Index (CPI) or 5% whichever is less. The CPI used to calculate taxes for the budget was.8%. Corporate Personal Property Replacement Tax (CPPRT) are taxes paid by corporations in lieu of taxes previously paid on fixtures and equipment. Tuition is primarily from summer school fees paid for summer classes. Fees are amounts paid for registration, course fees, activity fees, technology fees, and any other fees paid by students. Interest is received for funds that are in bank accounts as well as investments. Interest is gradually increasing mainly due to investments. Food Service is for lunch and milk provided to the students. State Because Geneva has a high property tax base, General State Aid is much lower at approximately 2.4%. The GSA foundation level is $6,119 per student however, the District receives approximately $300 per student because of the reduction from local funding. All State funding is slightly over 6%. 21

30 Categorical revenues are intended for targeted student population, mainly special education students. These funds are received in four payments. Payments have been delayed due to the inability of the State to fund payments. Transportation reimbursement is to cover state-mandated transportation costs. This is calculated on the previous year s expenditures. Federal Federal revenues are for grants issued from the federal government such as Title I, Title II, IDEA Flow through funds, Perkins and CTEI. The district receives minimal funds at 1.6%. Other Other encompasses any revenue received that does not have a specific revenue code. Total Revenue $96,470,678 6% 2% Local State Federal 92% 22

31 Expenditures Change Actuals Actuals Budget $ % Salaries 46,080,268 47,142,382 50,074,134 2,931, % Employee Benefits 9,319,422 10,021,825 9,967,971 (53,854) -0.5% Purchased Services 8,055,552 7,975,818 8,166, , % Supplies and Materials 4,223,532 3,857,554 4,609, , % Capital Outlay 4,262,062 3,747,579 4,573, , % Non-Capitalized Equipment 535, , , , % Tuition 2,537,955 3,684,506 3,938, , % Contingencies - 250, , % Debt Service Payments 18,717,360 20,277,551 22,117,659 1,840, % Other 880, , , , % Total Expenditures 94,611,623 96,971, ,029,994 8,058, % The School District budget is categorized by types of expenditures. The largest expenditures for a school district are salaries and benefits, which accounts for $60.1 million or 57% of the total budget. $18.1 million will be used to provide supplies, materials, equipment, and purchased services to the students of Geneva schools. Tuition costs to provide for Special Education and Vocational and Career Education are appropriated at $4 million. In addition, Debt Service payments of $22 million is the second largest expenditure for the District. Salaries increased 6.2% based on contracts and working agreements for FY Employee Benefits are health, dental, life, and vision insurance as well as pension benefits. The decrease of 0.5% was primarily health insurance decreases due to a change in insurance benefits offered. Purchased services increased 2.4% due to contractual service increases such as software licenses, vehicle leases, and outsourced transportation. Supplies and Materials had a larger increase at 19.5% mainly due to utility increases. Capital Outlay has increased 22.0% to provide needed facility maintenance. Non-Capitalized Equipment increased 79.2% as the district continues to implement 1:1 devices for all students. Tuition increases, 6.4%, are for Mid Valley Special Education services, Fox Valley Career Center classes, and virtual classroom classes. The increase is based on enrollment and services provided. Contingency funds are budgeted in Education for additional staff on an as needed basis. Debt Service payments are increasing as scheduled. Other financing sources is the abatement amount from FY 2016 fund balance over $15 million in the Education fund, bank loan for the Mobile classroom and sale of buses. Other financing uses is the abatement amount that is transferred to the Debt Service fund for future refunding. 23

32 Debt Service Payments 21% Total Expenditures $105,029,994 Other 1% Contingencies 0% Tuition 4% Non-Capitalized Equipment 1% Capital Outlay 4% Supplies and Materials 4% Purchased Services 8% Employee Benefits 9% Salaries 48% Salaries Salary costs related to certified and noncertified staff including coaching, stipends, substitutes, and overtime. Employee Benefits - Health, Dental, Vision, and Life insurance per agreements as well as retirement plans and Social Security/Medicare. Purchased Services Payment for professional and technical services, travel, postage, telecommunications, and repairs/maintenance. Supplies and Materials Instructional supplies, textbooks, office and custodial supplies, consumable materials, and utilities. Capital Outlay and Non-Capitalized Equipment Acquisition of fixed assets, replacement of equipment, new equipment, furniture, buses, computer equipment, and facility vehicles. Tuition reimbursement for services provided by other educational agencies for students within our district. The District expenditures are recorded through nine separate funds. Each fund is recorded separately with a budget for each. Operating funds consist of the Education fund, Operations and Maintenance fund, Transportation fund, Municipal Retirement fund, Working Cash fund, and the Tort fund. Other funds are Debt Service, Capital Development, and Fire Prevention and Safety. The District reviews and prioritizes expenditures to contain costs and remain within the parameters set by the Board s goal to maintain a balanced budget. As costs continue to increase and revenues continue to decrease, it is becoming more difficult to achieve this goal. 24

33 Fund Balances The budget contains fund balances for each of the funds the District utilizes. Fund balance is the accumulation of funds not expended in prior years. This can be from under spending or receiving excess revenues. Changes in fund balance can indicate trends and the financial health of the District. Geneva s financial policies require an operating fund balance of 30% to ensure adequate funds are available for the operation of the District. The operating budget is not balanced and is at a deficit of $2,592,645. This is offset by the bus buy-back amount of $1,518,462. The remainder of the budgeted expenses will be funded by fund balance. $15,062,227 Operating Funds Projected Fund Balance $38,016,514 $14,384,535 $5,327,716 $1,597,567 $1,615,613 $28,856 Educational Operations and Maintenance Transportation Municipal Retirement Working Cash Tort 25

34 The District s Non-Operating Fund balance consists of the Debt Service Fund. This fund has a large fund balance because of the abatements for bond payments for the future years. These funds are restricted and can only be used for bond payments. Non-Operating Funds Projected Fund Balance $16,297,654 $16,297,654 Debt Service 26

35 Budget Forecast The Total Budget for is $105,029,994. The Operating Fund revenues are $81,838,152, which includes other financing sources, and the expenditures are $82,912,335 showing a deficit of $1,074,183. With the Abatement amount of $4,251,001, revenue over expenditure is in deficit spending at $5,325,184. The Debt Service Fund revenues are $16,150,988 and the expenditures are $22,117,659. The deficit is being paid from previous year s abatements. This year s budget includes technology to continue the 1:1 initiative to support learning initiatives set forth in the Board goals. The Technology Plan, $795,000 includes: o 1:1 student devices for grades 4, 6, 9, 10. o Grade 1 is the purchase of 135 ipads to be utilized on a 2:1 basis. Grade 4 and 6 is a 3- year lease of 1,000 laptop computers. o The high school Grade 9 is the purchase of 550 laptops to be used by the students for their 4 years at the high school. Grade 10 is a 3-year lease to be used by the students for the remaining 3 years at the high school. o Infrastructure/Network enhancements, Firewall/Filter upgrade and Network equipment replacement. o Classroom Projector replacements o Teacher/Staff device replacements o Technology fee of $45 per student to offset a portion of the cost o Fabyan Foundation funding for Technology $120,000 Staffing additions per the Staffing Plan $134,000 The Facility Capital Plan provides necessary maintenance of all facilities. This year a sixclassroom modular classroom unit was added to the high school to provide additional needed space. This is the third year for Project Lead the Way that is fully funded by a generous donation to the district. The district is in the second year of a three-year contract with teachers. The contract approved in 2015 ties future raises to an economic indicator (CPI) and establishes a committee to revise the current step system to make it more sustainable for the community. Special Education, Library, and Kindergarten Assistants formed a new union, Geneva Support Staff Association (GSSA). Negotiations for the contract are ongoing. The District maintained its Standard and Poor bond rating of AA+ Stable and Moody s Investor Services bond rating of Aa2. The District continues to maintain a financial score of Financial Recognition from the Illinois State Board of Education, the highest category for financial strength. Retirement savings for 24 retirees is approximately $800,000. Special Needs Transportation was shifted to the district for a cost savings and to better serve our most needy students. A bond refunding defeasance occurred in December to realize a cost savings to the district as well as level out debt payments over the next 10 years. 27

36 The District continues to maintain a 50% plus operating fund balance reserve while providing the District with the necessary staffing and instruction to promote 21 st Century learning and to maintain the level of excellence expected from our community. The District develops a comprehensive, long-range financial projection plan. The financial plan projects all revenues and expenditures for the next five years in all funds. Built into these projections are increases, decreases, and major cost shifts due to facility improvements and major cost initiatives such as the 1:1 technology device plan. These variables can be adjusted at any time to provide the Board with an accurate projection in determining the District s financial health. 28

37 Enrollment Trends Enrollment projections are the basis for class size, staffing, and program planning. The students who attend Geneva schools are mostly from the City of Geneva with a small number from the City of Batavia. From 2000 through 2005, District 304 experienced large increases in enrollment growing from 4,700 students to over 5,700. Increased enrollment continued until 2008 but at a slower pace. Since 2008, enrollment has been more static and has remained at approximately 5,800 until the last two years in which the district has experienced a slight decrease in enrollment. The Kasarda Enrollment Study completed in 2011 projects the total enrollment to slowly decrease as seen in the chart below. However, after reviewing the current residential developments and growth in the district, the enrollment is projected to slightly increase in the future. *Does not include Pre-School (71 students for ) For the past five years the Districts low income population remains steady at 5-6%, Students with Disabilities remains level at 14.3%, and English Language Learners are at 1.8% of the total student population. 29

38 Property Taxes State law and the School Code of Illinois govern the policies and procedures of school finance. Property taxes are a major local revenue source, representing 87.1% of the District s total revenue. The property tax cycle extends over two years. The tax year is the year of assessment and reflects the value of property as of January 1 st. The tax bills are distributed and the taxes are paid in the year following the tax year. District 304 is a municipal corporation governed by a Board of Education, which has the exclusive responsibility and accountability for certifying an annual levy to the respective county clerk. School districts in Illinois levy for each Governmental Fund. The county clerk is responsible for the extension of taxes levied by the school district within the Property Tax Extension Limitation Law (PTELL), better known as the Tax Cap. The County Treasurer has the responsibility of mailing the tax bills, collecting the property taxes and remitting the revenues back to the taxing districts. Kane County distributes their tax receipt collections monthly beginning in May and ending in October with the largest installments in June and September. The District s total taxable Equalized Assessed Valuation (which excludes incremental TIF values) by tax year is as follows: * EAV 1,328,294,553 1,285,654,414 1,241,734,700 1,252,189,532 1,287,126,861 1,376,043,642 New Property 9,086,307 12,935,961 10,078,075 11,306,374 13,160,987 20,000,000 Tax Rate (per $100 EAV) Education Operations and Maintenance Debt Service Transportation Municipal Retirement Social Security Special Education Fire Prevention, Safety Total Tax Rate Tax Extensions Education 47,171,193 49,298,509 48,900,009 49,161,562 49,547,048 50,619,111 Operations and Maintenance 9,941,395 9,642,408 9,250,005 9,217,793 9,653,451 10,607,000 Debt Service 14,878,320 15,149,997 15,655,009 16,462,999 16,125,988 14,900,000 Transportation 1,891,053 1,985,976 3,960,004 2,355,644 2,358,016 1,810,000 Municipal Retirement 1,237,413 1,299,527 1,236, ,370 1,076,939 1,101,000 Social Security 1,037,823 1,089,926 1,030, ,370 1,076,939 1,101,000 Special Education ,435,294 3,438,817 3,517,000 Fire Prevention, Safety 211,000 Total Tax Extension 76,157,197 78,466,343 80,031,044 82,400,032 83,277,198 83,866,111 * Proposed Property Tax Levy not finalized Tax Caps Beginning in the 1991 levy year, the tax rates have been reduced by the Property Tax Extension Limitation Law (PTELL) or the Tax Cap. This cap limits the growth of a taxing body s previous year s tax extension to the lesser of the Consumer Price Index (CPI) or 5%. Revenue from newly assessed tax parcels are excluded from the cap. A fundamental structural imbalance exists in this funding formula because most of the costs related to the delivery of public education exceed CPI. 30

39 Tax extension increases are governed by the increase in the EAV and the PTELL. The total tax extended by the County Clerk may increase by a limited amount each year. Within that aggregate increase, the District has authority to distribute the tax to the prescribed individual funds as long as the distribution stays below the fund rate ceiling that is prescribed by law. The method the District follows is to find the new aggregate limit by multiplying the previous year s tax extension by the new PTELL limit, then adjusting individual levies so as not to exceed its rate ceiling. In previous years, this has allowed the District to adjust down certain levies and give the Education Fund the highest priority. The District is in the beginning stages of the 10-year Health Life Safety Surveys required by Illinois law. The cost for the mandated repairs can be expensive. Beginning with the 2016 levy, the district is issuing a levy in Fire Prevention and Safety. D304 Property Tax Rates The tax cap limits the tax rate through equalized assessed valuation, consumer price index, and new growth. The equalized assessed valuation has historically increased at rates greater than the consumer price index. The result has lowered the tax rate through In 2008, economic conditions caused the equalized assessed valuations to decrease resulting in a tax rate increase. As the economy improves, the equalized assessed valuation is leveling off. In 2016, the equalized assessed valuations increased causing a lower tax rate. The district also completed a refunding and pay-off of bond issues that lowered the debt service rate. Tax rates are per $100 Equalized Assessed Valuation (EAV). The following chart shows the statutory rates allowed for levy purposes: Levy Purpose Statutory Rate Educational 4.00 Special Education.80 Operations & Maintenance.75 Transportation As needed Working Cash.05 Fire Prevention & Safety.10 Tort As needed IMRF/Social Security As needed The CPI used for the 2015 Tax Levy was 0.8%. The Board of Education adopted the final levy in December 2015 for the budget. The levy is to be filed with the County Clerk by (the last Tuesday in December). 31

40 Cost per Pupil The Cost per Pupil can be allocated in two different ways. As an Operating Expense per Pupil and as an Instructional Cost per Pupil. The Operating Expense per Pupil is estimated at $15,278. This accounts for all operating fund expenditures offset by any revenue or expenditure not applicable to the regular K- 12 program. The Instruction Cost per Pupil is estimated at $14,879. This accounts for all expenditures allocated for instructional purposes and is offset by any revenue received for these purposes. Personnel Geneva School District 304 is the third largest employer in Geneva with approximately 736 Teachers and Administrators, Educational Support Staff, Custodial, Grounds and Maintenance staff, and Bus Drivers. For the school year total staffing increased by 14.0 FTE. Additional teachers were added based on enrollment and program changes. A Science Instruction Facilitator was added to assist teachers with the new standards for science. To better serve our students who need social and emotional support, a 1.0 FTE Psychologist was added at the elementary level. The District also had 24 certified staff retire for a cost savings of $808,000. This offset the additional staff added for GENEVA COMMUNITY UNIT SCHOOL DISTRICT NO. 304 NUMBER OF FULL-TIME EMPLOYEES Administration Superintendent Assistant Superintendents District Administrators Principals and Assistants Total Administration Teachers (instruction) Elementary Middle School High School Special Education Student Services Total Instruction Other Support Staff Clerical, aides Operations staff Total Support Staff TOTAL STAFF

41 Personnel Resource Changes As a school district, we want our students to Keep Moving Forward in their educational experience and to maintain our buildings for a positive learning environment. To achieve this, the Administration reviews current positions and makes recommendations to the Board based on the final plan for staffing and programs. The preliminary staffing plan includes any changes, additions, or decreases in staffing for the following year as well as program changes. Over several months, staff meet to discuss and explain the changes. This year s personnel changes are: Science Instructional Facilitator (1.0 FTE) - District K-8: To instruct and guide teachers as they transition to the Common Core Science Standards. Instructional Coaches (1.2 FTE) High School: The growth in the amount of technology and the expectation for teachers and students to use technology requires more staff to provide real-time professional development, instructional support, modeling of best practices and the time needed to stay abreast of current technologies. The use of instructional coaches will ensure that teachers professional development is job-embedded, ongoing, and collaborative. Psychologist (1.0 FTE) Elementary: This is a change from part time to full time. This position will give additional support to students with intense social-emotional needs. The Psychologist will assist teachers in implementing interventions with students. HVAC Certified Position (1.0 FTE) a District HVAC certified staff member with electrical and refrigerant certification will reduce the cost of outsourced repairs to the HVAC systems within district buildings. 33

42 Current and Long Term Debt General Obligation Bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds currently outstanding are as follows: Series 2001A General Obligation Building Bond issued June 1, 2001 are due in annual installments through 2021, with a face amount of $19.5 million. Series 2004 General Obligation Building Bond issued December 1, 2004 are due in annual installments through 2019, with a face amount of $41.2 million. Series 2007A Site and Construction and Refunding Bond issued July 1, 2007 are due in annual installments through 2027, with a face amount of $85.8 million. Series 2007B Refunding Bond issued July 1, 2007 are due in annual installments through 2021, with a face amount of $7.5 million. Series 2008A Site and Construction Bond issued January 1, 2008 are due in annual installments through 2027, with a face amount of $14.6 million. Series 2010 Refunding Bond issued March 3, 2010 are due in annual installments through 2024, with a face amount of $2.6 million. Series 2011 Refunding Bond issued November 39, 2011 are due in annual installments through 2019, with a face amount of $8.8 million. Series 2012 Refunding Bond issued January 31, 2012 are due in annual installments through 2018, with a face amount of $4.2 million. According to the Illinois School Code, school districts maintaining grades K through 8, or 9 through 12 shall become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate not exceeding 6.9% on the value of the taxable property. Unit (K-12) districts shall not become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding 13.8% on the value of the taxable property. 34

43 General Obligation Bonds Payable At June 30, 2016, the District s annual cash flow requirements for retirement of bond principal and interest were as follows: Fiscal Year Ending June 30 Principal Interest Total ,317,295 15,653,645 21,970, ,710,201 13,780,349 23,490, ,015,476 15,166,006 24,181, ,107,240 17,397,069 24,504, ,237,704 16,566,248 24,803, ,355,000 18,734,631 96,089, ,295, ,375 18,752,375 Total $136,037,916 $97,755,323 $233,793,239 On July 31, 2007, the District issued General Obligation Refunding School Bonds to partially advance refund a portion of the September 9, 1998 Building Bonds, the June 1, 2001 Working Cash Bonds and the December 1, 2004 Building Bonds. Proceeds of $45,958,302 were used to purchase state and local government securities. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded debt. As a result, these bonds are considered defeased and the liability has been removed from the general long-term debt. There was no economic gain recognized. On March 2, 2010, the District issued General Obligation Refunding School Bonds to partially advance refund a portion of the May 1, 2004 Building Bonds. Proceeds of $2,831,703, along with the $500,000 remitted by the District were used to purchase state and local government securities. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded debt. As a result, these bonds are considered defeased and the liability has been removed from the general long-term debt. There was no economic gain recognized. On November 29, 2011 and January 31, 2012, the District issued General Obligation Refunding School Bonds to partially advance refund a portion of the May 1, 2004 Building Bonds. Proceeds of $14,241,605 were used to purchase state and local government securities. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded debt. As a result, these bonds are considered defeased and the liability has been removed from the general long-term debt. There was no economic gain recognized. As of June 30, 2015, the outstanding debt considered defeased is $28,348,325. The District is subject to the Illinois Compiled Statutes, which limits the amount of bond indebtedness, including tax anticipation warrants and the installment contracts, to 13.8% of the most recent available equalized assessed valuation of the District. As of June 30, 2016, the statutory debt limit for the District was $177,623,507 providing a debt margin of $59,458,198 after taking into account $17,872,607 available in the Debt Service Fund. Operations and Maintenance Loan The District has a bank loan related to the operations and maintenance of district buildings (Modular Classrooms). Annual principal and interest payments are required at 2.70% and are due annually on November 1 through fiscal year ended

44 At June 30, 2016, the District s annual cash flow requirements for retirement of the operations and maintenance loan s principal and interest were as follows: Fiscal Year Ending June 30 Principal Interest Total ,648 7, , ,776 13, , ,198 10, , ,714 7, , ,664 3, ,057 Total $650,000 $41,925 $691,925 The District is always reviewing the outstanding debt and in February 2014, approved a Debt Reduction Plan. The plan will take into consideration abatement, refunding, and defeasance as well as setting aside additional funds to pay down bond balances and to flatten out the bond payments and levy rate so they remain more consistent every year. Over the past six years, the District has abated approximately $27.8 million. This year the district refunded callable bonds for a cost savings to the district. This refunding along with the abatements lowered the tax rate by $.71 from the original rate. Debt Service Rates 2.00 T a x R a t e Levy Rate Reduced Rate after Abatement 36

45 Other Organizations Geneva District 304 has active Parent/Teacher Organizations (PTOs) at each building that assist in providing their schools with both volunteer and financial support. The Geneva Academic Foundation (GAF) also helps to fund and implement innovative and/or enrichment programs for all students. The Fabyan Foundation provides a scholarship program to graduating 12 th grade students as well as a Technology grant program. Geneva District 304 enjoys strong partnerships with the local park district, civic organizations, and other community agencies, which are a source of support for many student experiences and activities, both academic and extra-curricular. The Geneva PRIDE Volunteers provide countless service hours to support all manner of student learning activities at all levels. 37

46 Benchmark Data The cost to educate a student is difficult to correlate with the education of the student. There are many costs that fluctuate with time and cannot be directly related to student achievement. Many of our programs for professional development along with math and science coordinators directly affect the learning process of our students. These initiatives are budgeted as needed. The District does have a higher achievement rate for its students compared to the State, with the State incurring a higher instructional cost per student than the District. Instructional Cost per Student 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, District 6,972 6,899 6,807 6,649 6,393 State 7,712 7,419 7,094 6,974 6,824 District to State Data shows the District performing higher than the State with about the same number of staff to pupil ratio but with a higher-class size as seen in the charts that follow. 38

47 Average Class Size 22 Disrict State Graduation Rate District State Ready for College PARCC % 77 District State District State District State Met Exceeded Did not Meet 24.2 ACT Scores 20.8 Pupil to Teacher Ratio 17 District State District State Elementary Secondary 39

48 Performance Results A key factor in continuous improvement is to draw upon past successes and strengths in an effort to meet the continually changing demands of our modern world. As a high-achieving school district, we work to continually recognize and build on these strengths, which we refer to as our Tradition of Excellence. At the foundation of these strengths is a supportive and involved community. The people living in Geneva recognize the historic yet thriving nature of our community and are dedicated to excellence in education and support of our students. This community support is also evident in the many partnerships with local governmental bodies and other entities. Geneva Community Unit School District 304 was ranked 12 th best school district in Illinois by Niche.com, placing Geneva in the top 3% of school districts in the country. Geneva High School placed among the top 8% of public high schools (1,645 out of 19,908) in the nation, according to U.S. News & World Report s 2016 edition of Best High Schools. The School Report Card, published annually by the State of Illinois, provides comparative data that can be used as indices of academic effectiveness. The School Report Card provides important information pertaining to school and District achievement compared to State levels. The School Report Card documents Geneva Community Unit District 304 s excellence in key areas of performance and accountability. The current Report Card shows that the District s graduation rates and ACT (American College Testing) scores continue to exceed state averages. District State ACT Composite Graduation Rate 85.6% 85.5% Source: 2016 Illinois School District Report Card College preparedness benchmark scores for Geneva High School students average 30% higher than State scores. The following graph shows the ACT results for Geneva High School as well as the Illinois average. 40

49 Composite ACT Scores CUSD 304 State of Illinois Geneva Community Unit School District 304 provides programming to meet the varying needs of students, including regular, intervention, accelerated/enrichment, honors, and AP programs for its students. All Geneva High School Students are enrolled in a seven-period academic day and must earn 20.5 credits in order to be eligible for graduation. Students may select from over 210 courses in the program of study, which includes course offered on-site at Geneva High School as well as courses made available through the Fox Valley Career Center. In addition, GHS students have the opportunity to register for dual, articulated, and virtual for-credit courses. Students have the opportunity to enhance their academic experience and Grade Point Average through Honors, AP, and other weighted capstonetype courses. 41

50 PARCC The district administered Partnership for Assessment of Readiness for College and Career Readiness (PARCC) in the school year. This exam is tied to Illinois new, more rigorous academic standards for the areas of English Language Arts and Math. It is important to note that the PARCC exam is a new test that assesses new standards in a new way. While we know that no one assessment score can ever capture the fullness of a child s potential or breadth of abilities, we recognize that these results provide an important piece of information for us to consider as we strive to provide the very best education to our students. Below you can see Geneva 304 s overall results from the administration of the PARCC exam. 42

51 MAP The Measures of Academic Progress (or MAP) tests are intended to help determine each student s instructional level and measure academic growth over time in the areas of reading and math. MAP tests are unique in that they are adaptive tests that students take on a computer. In an adaptive test, each question to which a student responds is based upon her/his response to previous questions. This adaptive model not only ensures that students take assessments customized to their personal learning levels, but also provides more individualized information about each child s learning to her or his teacher. Below is the Dynamic Maps Assessment results. 43

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53 ORGANIZATIONAL SECTION BUDGET GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 GENEVA, ILLINOIS 45

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55 The District Entity Legal Autonomy Illinois schools are established and governed under the State of Illinois under the guidelines of The School Code of Illinois. The first Geneva school started in 1836 in the Sterling Family s log cabin with only eleven students. The district continued to grow, and in 1858, Geneva was officially incorporated as a village. In 1873, an East Side and West Side School consolidated into District 2, with a population close to 1,000 residents. In 1952, the Community High School District consolidated with the surrounding Elementary School District to become Geneva Community Unit School District 304. Fiscal Independence The District is fiscally independent and has legal authority to levy taxes, issue bonds, and incur debt as approved by the local government and the School Board. The School Code of Illinois requires the District to adopt a budget by the end of the first quarter of the fiscal year and to certify the certificate of tax levy by the last Tuesday in December. District Size and Scope District Information Geneva is one of the premier communities of the western Chicago suburbs, well known for its historic downtown and Third Street shopping area. The District is located approximately 35 miles west of downtown Chicago, Illinois, and covers an area of square miles. The District provides for the education of children in pre-kindergarten through grade twelve. The City of Geneva, county seat of Kane County, is centrally located within the District. The Geneva Community Unit School District 304 property tax base is comprised of 74% residential property, with the balance being a mixture of commercial and industrial. Many of its residents commute to Chicago and the surrounding suburbs for employment. The population served is estimated at 21,800, which include both the City of Geneva and a portion of Batavia and Blackberry Townships. The first Geneva school started in 1836 in the Sterling Family s log cabin with only eleven students. The district continued to grow, and in 1858, Geneva was officially incorporated as a village. In 1873, an East Side and West Side School consolidated into District 2, with a population close to 1,000 residents. In 1952, the Community High School District consolidated with the surrounding Elementary School District to become Geneva Community Unit School District 304. In 2016, the district housed 5,836 students, in nine separate buildings, with a teaching staff of 452 professionals. Harrison Street Elementary School, Western Avenue Elementary School, Mill Creek Elementary School, Heartland Elementary School, Fabyan Elementary School, and Williamsburg Elementary School are the sites for kindergarten through fifth grades. Geneva Middle School North and Geneva Middle School South are the sites for sixth through eighth grade as well as Friendship Station Pre- School, at Geneva Middle School South. Geneva High School houses the ninth through twelfth grade students. Geneva Community Unit School District 304 provides programming to meet the varying needs of students, including regular, intervention, accelerated/enrichment, honors, and AP programs for its students. All Geneva High School Students are enrolled in a seven-period academic day and must earn 20.5 credits in order to be eligible for graduation. Students may select from over 210 courses in the program of study, which includes course offered on-site at Geneva High School as well as courses made 47

56 available through the Fox Valley Career Center. In addition, GHS students have the opportunity to register for dual, articulated, and virtual for-credit courses. Students have the opportunity to enhance their academic experience and Grade Point Average through Honors, AP, and other weighted capstonetype courses. The District is a member of the Mid Valley Special Education Cooperative to serve the District s special needs students. Approximately 60 students attend for a variety of services not available at the district level. 48

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58 Building Information Geneva High School Geneva Middle School North 416 McKinley Avenue 1357 Viking Drive Geneva IL Geneva IL Principal: Thomas Rogers Principal: Lawrence Bidlack Geneva Middle School South Fabyan Elementary School 1415 Viking Drive 0S350 Grengs Lane Geneva IL Geneva IL Principal: Terrance Bleu Principal: Darcy Thompson Harrison Street Elementary School Heartland Elementary School 201 North Harrison Street 3300 Heartland Drive Geneva IL Geneva IL Principal: Brenna Westerhoff Principal: Kimberly Hornberg Mill Creek Elementary School Western Avenue Elementary School 0N900 Brundige Drive 1500 Western Avenue Geneva IL Geneva IL Principal: George Petmezas Principal: Ronald Zeman Williamsburg Elementary School Friendship Station Preschool 1812 Williamsburg Avenue 1415 Viking Drive Geneva IL Geneva IL Principal: Dr. Julie Dye 50

59 District Map 51

60 GENEVA COMMUNITY UNIT DISTRICT 304 Administrative Organizational Chart 52

61 GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 PROFILE OF SCHOOL DISTRICT LEADERSHIP BOARD OF EDUCATION Mark Grosso... Board President Kelly B. Nowak... Board Vice President Leslie Juby... Member David Lamb... Member Michael McCormick... Member Mary Stith... Member William Wilson... Member EXECUTIVE TEAM Dr. Kent Mutchler... Superintendent Donna V. Oberg... Assistant Superintendent-Business Services Dr. Adam Law... Assistant Superintendent-Human Resources Dr. Andrew Barrett... Assistant Superintendent-Learning and Teaching Shonette Sims... Director of Learning and Teaching Scot Ney... Director of Facility Operations Michael Wilkes... Director of Technology Mary Dunmead... Director of Transportation Anne Giarrante... Director of Student Services Jamie Benavides... Assistant Director of Student Services Todd Latham... Coordinator of Business Services Stephanie Martin... Early Childhood Coordinator Kristy Poteete-Kriegermeier... Communications Coordinator BUILDING PRINCIPALS Thomas Rogers... Geneva Community High School Larry Bidlack... Geneva Middle School-North Terry Bleau... Geneva Middle School-South Darcy Thompson... Fabyan Elementary School Brenna Westerhoff... Harrison Street Elementary School Kimberly Hornberg... Heartland Elementary School George Petmezas... Mill Creek Elementary School Dr. Julie Dye... Williamsburg Elementary School Ronald Zeman... Western Avenue School 53

62 Geneva Community Unit School District 304 Board of Education The Board of Education is a seven-member board made up of residents of the Geneva community. Members are elected by the general public, serve four-year terms, and are not compensated for their service to the School District. The seven current members of the Geneva School District Board of Education have served the students of Geneva for a collective 45 years and have careers and/or backgrounds in finance and commercial banking, investing, construction management, nursing, law, education, and management. Board President Mark Grosso April 2009 April 2017 Board Vice President Kelly B. Nowak April 2007 April 2019 Leslie Juby April 2013 April 2017 David Lamb April 2013 April 2017 Mike McCormick April 2011 April 2019 Mary Stith April 2003 April 2019 Bill Wilson Nov April

63 Mission and Vision The purpose of Geneva Community Unit School District 304 is to educate students within an environment that encourages the desire to learn and enhances the teaching of skills necessary to meet the unique academic, personal, physical, and social needs of each individual. The school program will reflect the values and ambitions of the community, and every student will be challenged to develop intellectual and learning skills to his/her fullest potential, preparing him/her to become a contributing member of society. The students of today are living in a truly globalized society, one in which they are able to consume, produce, and disseminate information in ways that we could not even imagine just a decade ago. As educators, we are tasked with preparing students for jobs and technologies that have, in all likelihood, yet to be invented. The employers of tomorrow will be looking for complex and creative thinkers and adaptable and agile learners. We must look beyond the content to ensure that our students have the skills they need to succeed in an ever-changing, increasingly competitive world. This year, our theme is #KeepMovingForward. To us, this means building growth mindsets not only in our students, but also in our staff. Change can be hard, especially for those who are set in their ways. But the I ve always done it this way and it s always worked fine mentality keeps us from growing. It prevents us from innovating and adapting two essential skills that we must be modeling for our students. In Geneva 304, we empower our staff and our students to challenge themselves, take risks, and to learn and grow from their failures. Failure is a key to building curiosity, self-direction, creative and adaptive thinking, and resilience. These are skills that students will need to survive in the New World of Work. The common vision of all members of Geneva School District 304 is to assist every student to become: Self-directed, life-long learners who enjoy the challenge of learning; are self-confident and goaloriented; and demonstrate physical, emotional, and intellectual well-being. Effective communicators who access, interpret, and respond to information by reading, listening, and questioning; convey meaning in writing, verbally, visually, numerically, and artistically; and use appropriate technology. Complex, creative, and adaptive thinkers who apply academic knowledge, skills, and strategies to gather and interpret information to solve problems; create intellectual, artistic, and practical products which reflect quality and originality; and analyze the effectiveness of their decisions and solutions. Collaborative workers/citizens who recognize the advantages of diversity and cooperation; show concern, tolerance, and respect; demonstrate leadership and/or group skills; demonstrate actions that mutually benefit self and others; and assume responsibility for their actions, locally and globally. Our vision for students is made of four primary components that align to the needs of the modern workforce. It is our hope that achieving these skills, students will become self-evolving learners who are capable of embracing and capitalizing on constant change- the way of the future. Goals and Initiatives The District develops goals and initiatives for reading, problem solving and success for all students. These primary goals and supporting action plans aim toward high expectations for student achievement, are data-driven, and provide a focus for education in Geneva. The Board of Education goals and objectives are to: Continuously improve the caliber, content and assessment of instruction through the regular review of student learning and instructional methods 55

64 Maximize learning and teaching through the integration of technology Develop strategies to ensure sufficient resources are available and effectively managed Develop, utilize, and maintain facilities that serve the District s curriculum and programming and provide the necessary infrastructure to meet the needs of the students Provide a safe and secure educational environment for students Actively recruit, train, and promote quality administrators, teachers, and staff. Provide all staff with continuing opportunities for professional growth. Improve communication and interaction with the community to foster shared goals, values, trust, and support District 304 s departments are both informed and vested in their specialized roles to achieving the District goals. Communicating the progress toward these goals is essential for ongoing improvement. Learning and Teaching Continuously improve the caliber, content and assessment of instruction through the regular review of student learning and instructional methods Geneva School District 304 values accountability and believes it is important to assess the progress of students, staff, administrators, and the district as a whole so that we can continually improve. Recognizing that students learn and process information in vastly different ways, we believe it is important to take into account a variety of measures when determining student growth. Standardized assessments are important for benchmarking student performance, but they simply are not capable of measuring some of the important 21 st century skills that we aspire to in our vision. As a district, it is incumbent upon us to continually be looking for new and better ways to measure student growth. Teacher observation, student work and self-reflection, and 21 st century skills rubrics also must play important roles in the overall assessment of a student s growth and potential. School has never been about just the content. If we are to truly ensure that our students are ready for college, career, and civic life, we must continue to develop ways to assess important real-world skills such as collaboration, creativity, initiative and self-direction, and leadership and responsibility. Technology Integration Maximize learning and teaching through the integration of technology The Geneva School District 304 technology plan continues to focus on enhancing the learning environment. At the start of the school year, the district successfully distributed :1 devices to students in grades 6, 7, 9, and 10. It also consolidated existing devices to ensure full classroom sets of computers for students in grades 3-5. Over the next two years, new devices will be issued in such a way that every K-12 student in Geneva will have access to a device by the school year. Elementary students will have access to an age-appropriate device during the school day and middle school and high school students will be assigned a device that they will be able to take to and from school. The projected annual cost to implement and maintain this program is $1.5 million. In order to ensure that this technology is integrated into the curriculum in a meaningful way, the district has made professional development a fundamental component of the rollout. The phased rollout approach allows the district to effectively engage teachers in ongoing professional learning and supports them as they work to shift their practice. Financial Accountability Develop strategies to ensure sufficient resources are available and effectively managed 56

65 It is important to Geneva School District to maintain the public s trust as good stewards of resources. We maintain financial accountability through: Transparency The district posts its annual budget, administrator and teacher salaries, contracts over $25,000, and all bills payable on its website. Economy The district works very hard to find the best solutions at the lowest cost. All bids for contractual services or equipment are thoroughly evaluated to determine the most efficient use of resources. Additionally, the district continually investigates new ways to save money by finding efficiencies in current operations. Oversight The district submits to rigorous oversight by several bodies. In 2016, Geneva School District had high financial ratings from numerous agencies. These include: AA+ Stable Bond Rating from Standard and Poor s Aa2 Bond Rating from Moody s Investor Services ISBE 2016 Financial Profile Recognition, the highest category of financial strength ASBO Meritorious Budget Award ASBO Certificate of Excellence in Financial Reporting Long-Term Debt Restructuring In 2016, the Geneva Board of Education refunded (refinanced) $32,440,000 in bonds, which not only saves the district substantial interest fees, but also keeps the Debt Service payments level. Without the refunding, Debt Service payments would have increased from $15 million per year to nearly $25 million per year. Since the property tax rate is partially based on the Debt Service payments, the refunding prevents the property tax rate from increasing significantly. Since 2011, the district has abated nearly $24 million to taxpayers, which has helped to keep the property tax rate for Debt Service relatively flat. Contract Negotiations The Board of Education and the Geneva Education Association (GEA) thoughtfully negotiated to reach a teacher contract that is both fair and sustainable. The contract approved in 2015, ties future raises to an economic indicator (Consumer Price Index) and establishes a committee to revise the current step system to make it more sustainable for the community. The contract is a three-year agreement for FY to FY Salary increases in year one and year two are 2.65% plus 1% on the base. In year three, the minimum increase is 1% plus the 10-year rolling CPI average. This summer, a salary committee consisting of teachers, administrators, and Board members began the task of restructuring the current salary schedule for the school year, which reflects the interests and values of both the Board and the GEA. Efficiencies in Transportation The Transportation Department continually reviews and modifies bus routes and scheduling in order to make them as efficient as possible. The District participates in a bus buy-back program, which saves money and ensures the district has buses with the most up-to-date safety features. For the school year, the District reduced outsourcing for special needs transportation. Although there was an initial cost to purchase four new lift buses, providing our own transportation for special needs students will result in a cost savings of approximately $881,435 over a five-year period. In addition to the cost savings, the District is able to provide a consistent and less stressful transportation experience for our students with special needs. 57

66 Operational Services Develop, utilize, and maintain facilities that serve the District s curriculum and programming and provide the necessary infrastructure to meet the needs of the students Capital Improvement Plan Geneva School District strives to maintain facilities and grounds that the community can be proud of and that are safe and secure for our students and staff. Each year, staff members analyze the condition of district facilities and grounds and prioritize capital improvements based on cost, need, and efficiency. In recent years, this analysis has taken the form of a capital improvement plan that is updated annually. The following capital improvement projects were completed between 2015 and 2016 at a final cost of $1,921,662: Geneva High School Modular Classroom Geneva High School Steam Line Replacement Geneva High School Secondary Pumps Geneva High School Flooring Replacement Middle School Health/Life Safety Repairs Geneva Middle School South Door Installation Western Avenue Elementary Replacement of Chiller, Variable Frequency Drives, and Secondary Pumps Mill Creek Elementary Replacement of Variable Frequency Drives and six Air Handling Units Fabyan Elementary Replacement of Terrazzo Floor Tile Installation of Emergency Generators at Transportation and District Office Transportation Carpet Replacement The projected cost for projects is $580,250 consisting of VFD and secondary pump replacement and flooring replacement at the high school, tennis court resurfacing; fire shutters and fire lane resurfacing. Student Health and Well Being Provide a safe and secure educational environment for students Supporting Our Students Social and Emotional Needs Geneva 304 will continue to service the individual social, emotional, and academic needs of every student. We are committed to providing research-based interventions and supports to students who have deficits in specific areas. This is done through a strategic problem-solving process. The students in today s classrooms are faced with ever-increasing standards, constantly changing technology, and a world full of complex and often difficult issues. Geneva 304 will nurture the social and emotional needs of students so they can successfully cope with these demands as they strive to reach the tenets of our vision. Not only does social and emotional learning have a positive impact on workforce readiness, school attendance and graduation, life success, college preparation, and academic success (Adams, 2014), but it also helps maintain student mental health and well-being. Geneva Community Unit School District 304 provides instruction and supports aligned to the Illinois Social and Emotional Learning (SEL) Standards. Some supports are provided to all students, while others are provided to students who have demonstrated a need for specific interventions in the social-emotional arena. Additionally, the Geneva School District has combined efforts with the St. Charles School District, Batavia School District, Burlington Central School District, and Kaneland School District to collaborate with mental health providers in the surrounding area. On a monthly basis, staff from Geneva s Student Services Department has the opportunity to discuss positive steps that can be taken in response the 58

67 mental health crisis at the state and national level. In 2016, Geneva administrators completed a Mental Health First-Aid training at a cost of $1,000, to ensure they are prepared to identify and assist students who are in or are headed toward a mental health crisis. Through collaboration with the Regional Office of Education and Mid-Valley Special Education Cooperative, the District has implemented the Alternative Learning Opportunities Program (ALOP). This program provides students in grades 9 through 12 who are at risk of academic failure with a broader range of academic, behavioral and social-emotional interventions needed to meet the Common Core State Standards and complete their education in a highly structured learning environment. Services are designed to address individual learning styles and social emotional needs to enable students to successfully complete their education. An amount of $65,200 for tuition and supply costs is budgeted. Geneva Community Unit School District 304 will continue to explore strategies and programs to enhance students' social and emotional stability. Skills in this arena will assist students in reaching their goals as 21st Century learners. Ensuring Student and Staff Safety Geneva School District is committed to making our buildings safe and secure for every student and staff member. In preparation for the school year, a diverse team of Geneva staff members attended the four-day Multi-Hazard Emergency Planning for Schools training at the Federal Emergency Management Agency (FEMA) Training Facility in Maryland. The training was funded by IMEA. In collaboration with local first responders, the team assessed the district s emergency response plans and identified areas for improvement. The District continues to enhance our emergency preparedness by providing ongoing training of administrators, faculty, and staff through presentations, tabletop scenarios, and drills. The District continues to foster close working relationships with our first responder partners. At the beginning of the school year, we met with the Geneva Police Department and local fire departments to review our emergency response plans at each building. The district continues to seek out safety and security grants to help finance the cost of safety and security upgrades at our buildings. High Quality Staff Actively recruit, train, and promote quality administrators, teachers, and staff. Provide the District s administrative and instructional staff with continuing opportunities for professional growth. Teacher Mentoring and Induction Research shows that high quality mentoring and induction programs for new teachers, aids in the development of leadership skills, and an improvement in student success. In , District 304 hired 51 new licensed staff members mostly due to district retirements. Geneva School District is committed to providing all new teachers a comprehensive mentoring and induction program that prepares new teachers for effectiveness. In addition to a variety of orientations, new Geneva teachers also attend a four-day New Teacher Institute at the beginning of the school year. Sessions include introducing new teachers to the history and tradition of the school district, school district curriculum, student health protocols, and building practices and procedures. All teachers new to Geneva School District are also paired with an experienced teacher who offers practical and timely perspective and support during the school year. These practices improve teacher retention, helps create a collaborative culture, and drives system-wide alignment, which also saves money. Most importantly, they ensure that every child in Geneva has a great teacher! 59

68 Teacher Evaluation District 304 staff finished the work of overhauling the teacher evaluation plan in order to comply with the Performance Evaluation Reform Act (PERA) of The district is in its fifth year implementing the new performance standards, and a committee has worked to implement the final and most significant change required by PERA, that of incorporating student growth achievement into teacher evaluation. Members of the Teacher Evaluation Committee, which is comprised of district teachers and administrators, worked collaboratively to finalize the plan to incorporate student achievement growth into teacher evaluation and engaged staff in professional development to implement the plan. Our hope is that increased analysis of local student assessment data as well as collaboration among teachers will not only meet the new requirements under the law but continue to improve both teaching and learning in District 304. Ongoing Professional Development Geneva School District knows that teachers continually need to develop their knowledge to enhance teaching and student learning. The District provides many opportunities for teachers to learn, share, and collaborate throughout the year. One particularly successful program is the Collaborative Teacher Project (CTP), an ongoing program that focuses on teacher-driven learning, collaboration, and discussion. In , 154 teachers are participating in a CTP group to improve their knowledge base and enhance the learning experience for their students. This is projected to cost $120,000. Family/Community Engagement Improve communication and interaction with the community to foster-shared goals, values, trust, and support. Geneva School District believes authentic community engagement is an essential component of a thriving school district. The Board of Education and the Communications Task Force continue to implement new ways to enhance community involvement and find new ways to reach all of our stakeholders. One of the Board s primary goals for the school year is to focus on establishing an enhanced plan for engaging community members in a two-way communication process to inform decision-making and further achieve transparency. In , the Board began the Community Engagement Process through the Illinois Association of School Boards (IASB). It continues its work with IASB in to identify diverse voices and to ensure that those voices are represented in the decision-making process. Cost Containment Over the past several years, District 304 implemented many cost containment initiatives: Cost Containment Initiative Total Savings Staff $2,356,100 Building Allocations 713,030 Professional Development 204,000 Supplies/Capital Equipment 360,000 Transportation 1,125,000 Operations & Maintenance 330,000 Total $5,124,130 As Geneva Community Unit School District 304 has developed long-range financial projections, it has considered enrollment projections, staffing plans, program evaluation and needs, special education services, technology, and facilities improvement and maintenance on both a short-term and long-term basis. These factors have been evaluated with an overall goal to maintain quality educational programs. 60

69 The District will continue to implement cost containment initiatives, explore revenue opportunities, improve cost efficiencies, and control expenses within the financial resources that are available to Geneva Community Unit School District 304. The Board and Administration are dedicated to Tradition of Excellence in education, seeking to balance educational needs with sound fiscal practices. This year s budget had several key factors to its development. Technology implementation to provide every student with a device has directed the budget into a new direction. A large part of the Education budget will allocated to this every year creating a new norm for budgeting in future years. The newly formed Geneva Support Services Association union creates another negotiation group that can have a large impact on future budgets. State mandates that are unfunded in conjunction with late and absent State payments, and proposed legislation to freeze property taxes and shift pension costs to school districts, makes budgeting and projecting future year budgets, challenging. Continued efforts for cost containment and effective planning will be a primary goal to continue the Tradition of Excellence for all students. Geneva CUSD 304 will continue to be fiscally responsible in maintaining fund balance even with the challenges facing future years. 61

70 Certificate of Excellence Award in Financial Reporting The District received the Certificate of Excellence Award in Financial Reporting for fiscal year ending June 30, 2015 from the Association of School Business Officials (ASBO) International. This award represents a very significant achievement and reflects the District s commitment to the highest standards of school system financial reporting. The Certificate of Excellence is the highest recognition for school district financial operations offered by ASBO International and confirms that the District s Comprehensive Annual Financial Report (CAFR) have met or exceeded the standards set by ASBO International. 62

71 Meritorious Budget The District received the Meritorious Budget Award for fiscal year ending June 30, 2016 from the Association of School Business Officials (ASBO) International. This award represents a very significant achievement and reflects the District s excellence in school budget presentation. The Meritorious Budget Award is the highest recognition for school budget presentation offered by ASBO International and confirms that the District has met or exceeded the standards set by ASBO International. 63

72 Financial Profile Since the spring of 2003, the Illinois State Board of Education (ISBE) has utilized a new system for assessing a school district s financial health. The new financial assessment system is referred to as the School District Financial Profile. The new system uses five indicators which are individually scored and weighted in order to arrive at a composite district financial profile. The indicators are as follows: fund balance to revenue ratio; expenditures to revenue ratio; day s cash on hand; percent of short-term borrowing ability remaining; and percent of long-term margin remaining. The best category of financial strength is Financial Recognition. A school district with a score of is assigned to this category. These districts require minimal or no active monitoring by ISBE unless requested by the district. This award recognizes the strong financial position of the District in its management of annual resources and fund balances The District has received the Certificate of Financial Recognition for the last four fiscal years with a score of 3.7, Financial Recognition. District Budget Policies/Process Budget Preparation Policy The District's operation and educational plan is reflected in its budgets. By the end of the first quarter of each fiscal year, which is September 30 th, the Board of Education will adopt an annual budget that shall specify the objects and purposes of each item and the amount needed for each object or purpose. The budget is developed utilizing the following guidelines: Unrestricted reserves in the operating funds shall be maintained at a level equal to 30.0% of the operating budget. (The operating budget is composed of the education, operations & maintenance, transportation, retirement, tort immunity and the working cash fund.) The budget shall first provide for staff and operating expenses to meet projected changes in student enrollment and mandated programs. The budget shall reflect the Board s desire to maintain a level tax rate when possible. The budget shall reflect the Board s desire to maintain debt within the limits defined in the Illinois School Code. The budget shall reflect the Board s desire to maintain safe and operationally sound facilities. The budget shall anticipate compliance with all applicable governmental and legal obligations of the district. The budget shall include a contingency for variable and unanticipated costs. The administrative team shall in connection with the preliminary budget identify potential efficiencies and inter-building, interdepartmental and district wide coordination or from building or district programs or other organizational restructuring initiatives. Investment Policy The District maintains a set of procedures for the investment of School District funds that includes the following elements in Section 6144 of the Board of Education Policy Manual. The policy is in compliance with the Public Funds Investment Act. 64

73 A listing of authorized investments The standard of care that must be maintained by the persons investing the public funds Investment and diversification guidelines appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio Guidelines regarding collateral requirements, if any, for the deposit of public funds in a financial institution made pursuant to the Act, and, if applicable, guidelines for contractual arrangements for the custody and safekeeping of that collateral A system of internal controls and written operational procedures designed to prevent losses of funds that might arise from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the district Performance measures appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the School District s investment portfolio Appropriate periodic review of the investment portfolio, its effectiveness in meeting the School District s need for safety, liquidity, rate of return, and diversification, and its general performance Quarterly investment reports of investment activities by the Treasurer for submission to the Board of Education and the Superintendent, including information regarding securities in the portfolio by class or type, book value, income earned, and market value as of the report date A procedure for the selection of investment advisors, money managers, and financial institutions A policy regarding ethics and conflicts of interest. Budget Policy Change The Board of Education adopted a policy for Debt Management to provide guidelines relative to the issuance, sale, statutory compliance and investment of bond proceeds. The Board recognizes that the foundation of any well-managed debt program is a comprehensive debt policy. The District is in the process of refunding callable bond issues for a cost savings and to level debt service payments. Currently debt service payments are scheduled to increase substantially over the next few years. The payments were laddered to coincide with new growth however, due to the economy, new growth did not keep pace with the increase. The District refunded $32,390,000 of higher interest debt in December 2016 and is scheduled to complete an additional refunding in December 2017 for a savings of approximately $6 million and leveling off payments at $15 million per year. State Budget Requirements [Section 105 Illinois Compiled Statutes 5/17-1] Annual Budget. The board of education of each school district under 500,000 inhabitants shall, within or before the first quarter of each fiscal year, adopt an annual budget which it deems necessary to defray all necessary expenses and liabilities of the district, and in such annual budget shall specify the objects and purposes of each item and amount needed for each object and purpose. The budget shall be entered upon a School District Budget form prepared and provided by the State Board of Education and therein shall contain a statement of the cash on hand at the beginning of the fiscal year, an estimate of the cash expected to be received during such fiscal year from all sources, an estimate of the expenditures contemplated for such fiscal year, and a statement of the estimated cash expected to be on hand at the end of such fiscal year. The estimate of taxes to be received may be based upon the amount of 65

74 actual cash receipts that may reasonably be expected by the district during such fiscal year, estimated from the experience of the district in prior years and with due regard for other circumstances that may substantially affect such receipts. Nothing in this section shall be construed as requiring any district to change or preventing any district from changing from a cash basis of financing to a surplus or deficit basis of financing; or as requiring any district to change or preventing any district from changing its system of accounting. The board of education of each district shall fix a fiscal year. If the beginning of the fiscal year of a district is subsequent to the time that the tax levy for such fiscal year shall be made, then such annual budget shall be adopted prior to the time such tax levy shall be made. Such budget shall be prepared in tentative form by some person or persons designated by the board, and in such tentative form shall be made conveniently available to public inspection for at least 30 days before final action thereon. At least one public hearing shall be held as to such budget prior to final action thereon. Notice of availability for public inspection and of such public hearing shall be given by publication in a newspaper published in such district, at least 30 days prior to the time of such hearing. If there is no newspaper published in such district, notice of such public hearing shall be given by posting notices thereof in five of the most public places in such district. It shall be the duty of the secretary of such board to make such tentative budget available to public inspection, and to arrange for such public hearing. The board may from time to time make transfers between the various items in any fund not exceeding in the aggregate 10% of the total of such fund as set forth in the budget. The board may from time to time amend such budget by the same procedure as is herein provided for its original adoption. The District begins the budgeting process in January with the Building Principals and other supervisors acting as budget administrators. The budget reflects the financial support of the goals and objectives of the District. Budget administrators assess programs and class size to determine the needs of additional staff. They provide information and budget requests in order to continue programs and, in some cases, expand programs. Budget administrators are also responsible for providing information about various grants that the District receives. As the budget is prepared, approximately 57% of total expenses are allocated to salaries and benefits due to contractual agreements. Budget administrators submit their requests to the Assistant Superintendent for Business who then compiles the budget. During this time the Assistant Superintendent for Business discusses the general financial condition with the Superintendent and the Board of Education. The budget is presented to the Finance Committee and the Board in phases. 1. A Pre-Preliminary budget is prepared and presented in February using the prior year s budget and adding a percentage increase. This gives a starting point for the next phase. 2. A Preliminary budget is prepared and presented for the Operations and Maintenance Fund and the Transportation Fund in April. 3. A Preliminary budget is prepared and presented for the Education Fund in May. 4. A Preliminary budget is prepared and presented for all funds in June. 5. A Tentative budget is prepared and presented in August. 6. A Final budget is presented and adopted in September. 66

75 The District shall maintain a five-year long term financial projection. The District uses a Financial Planning Program (FPP) which provides the ability to address what if scenarios. The Board, Superintendent, and the Assistant Superintendent for Business constantly review the budget preparation to see that the budget is in accordance with these guidelines. Budget Adoption and Publication The District will prepare and present a Tentative Budget to the Board of Education. The Board approves the Tentative Budget to be placed on display for a period of 30 days. The Board sets the date and time for the Public Hearing on the Official Budget. After the Public Hearing, the Official Budget is approved at the Board meeting. The Board of Education shall approve the Official Budget no later than the end of the first quarter of the fiscal year, September 30, as provided for in the Illinois School Code. Cash Management Cash and investments of the District are maintained by the District Treasurer. The Board of Education appointed the Assistant Superintendent for Business to serve as the District Treasurer. The Treasurer is responsible for the investment of funds. Investments are maintained in deposits with financial institutions, savings and checking accounts and non-negotiable certificates of deposit, repurchase agreements, and U. S. Treasury obligations. Certificates of deposits are covered under FDIC insurance limits for privately insured or collateralized. The Treasurer submits monthly investment reports to the Board of Education. Investment strategies are structured to obtain the best yield for all invested funds while meeting the District s goals of safety and liquidity. Risk Management/Insurance District 304 is a member of Collective Liability Insurance Cooperative (CLIC), which has been formed to provide casualty, workman s compensation, property and liability protections and to administer some or all of the insurance coverage and protection other than health, life and accident coverage procured by member districts. It is intended, by the creation of CLIC, to allow a member District to equalize annual fluctuations in insurance costs by establishing a program whereby reserves may be created and temporary deficits of individual Districts are covered and to ultimately equalize the risks and stabilize the costs of providing casualty, property, and liability protections. District 304 is self-insured for employees medical, vision, and dental insurance. Independent third-party companies administer benefit claims for the District s self-insurance plans. The district continually assesses the safety and security of students and staff. A Building Security Assessment of all buildings within the district was completed in This is an update from the original audit in 2009, when the district had a security audit completed by RETA Security. The audit identifies issues that are being reviewed and prioritized. Many items listed in the audit have been remediated, such as: exterior doorways must remain closed and locked during the day good lighting around the building entrances, walkways, parking areas consistent verbiage on signage keep bushes and trees trimmed to allow for better visibility around the buildings better training on the phone system visitor management credential exchange system improve door hardware and fob access more controlled As a result of the current audit, the district made changes to: the entrance to the high school, enclosing entryway for a more secure entry of visitors 67

76 film protection on glass to deter entrance into a building through the windows additional security cameras at strategic locations screening of visitors through a software program These are just a few of the upgrades to the security of our schools. This will be an ongoing process. Capital Assets The District utilizes an outside appraisal service for the appraisal, control and inventory of capital assets. Industrial Appraisal Company completed a comprehensive appraisal of the District s assets in The new financial software upgrade includes a fixed asset module to assist with the accuracy of the capital asset data. Appraisals are used for verification and updating of replacement values for inventory and insurance purposes. Bond Issuance The District is consistently reviewing bond issues to identify cost savings when applicable. The Series 2016 bond issued in December, fully advance refunds the callable portion of the 2007A and 2008 Series Bond for a savings to the District of approximately $5 million. In addition, the 2007B Bond Issue was paid in full using funds abated to the Debt Service Fund. The District will complete the refunding in December 2017 to level debt service payments to $15 million per year. Although the restructuring of the debt extends the payoff an additional four years, there is a substantial savings to taxpayers, as the payments were originally scheduled to increase to $25 million per year. Standard & Poor s assigned District 304 with a bond rating of AA+ Stable. The assignment of the AA+ rating with a positive outlook reflects the district s strong financial position with stable reserves and revenues, a large tax base within the Chicago metropolitan area, and manageable debt burden. Facility Plan District 304 is comprised of nine schools. District 304 prides itself on outstanding and continual upkeep and improvement to all facilities. The Master Facility Plan was designed and implemented in The plan reviewed all buildings in the district and provided a plan to bring all buildings in compliance with Health and Life Safety guidelines as well as providing information for maintenance of each facility and the construction of two new elementary schools. The Master Facility Plan was completed with the opening of our newest elementary school in fall of The Capital Improvement Program was developed in Its purpose has been to identify and fund large capital expenditures for renovation, remodeling or renewal of our facilities. It is composed of either major maintenance projects or capital improvement projects. The Capital Improvement Plan budget for is $1,871,655. The District is currently conducting 10-year Health Life Safety audits that will be part of the Capital Improvement Plan. The following projects were completed for this fiscal year: Geneva High School Modular Classroom Geneva High School Steam Line Replacement Geneva High School Secondary Pumps Geneva High School Flooring Replacement Middle School Health/Life Safety Repairs Geneva Middle School South Door Installation Western Avenue Elementary Replacement of Chiller, Variable Frequency Drives, and Secondary Pumps Mill Creek Elementary Replacement of Variable Frequency Drives and six Air Handling Units Fabyan Elementary Replacement of Terrazzo Floor Tile 68

77 Installation of Emergency Generators at Transportation and District Office Transportation Carpet Replacement Each building s administrative team compiles a school-generated list of projects for facility improvements and major maintenance needs, which represent potential future projects. The projects are not guaranteed to move forward but are intended to assist with planning and budgeting for the future. The Capital Improvement Plan is a budget-planning tool in which the projects are determined by budget, instructional needs, school requests, and maintenance concerns. Data is updated annually and adjusted based on current need. A Facility Task Force comprised of the Director of Operations, Assistant Superintendent for Business, the Superintendent, and two Board of Education members, reviews proposed projects. The Superintendent makes a recommendation to the Board of Education for final approval of projects. Because of limited funds in the Operations and Maintenance budget, the Capital Improvement Plan was carried out to seven years instead of five years. Budget Additions/Changes The District continues its commitment to narrow the achievement gap and to meet the needs of all students to maintain a Tradition of Excellence. The revenue budget for FY 2017 increased $2,504,115 due to an increase in property taxes and student fees. This year a technology fee of $45 for every student was added. The State budget allocations continue to be late due to the State of Illinois budget crisis. The expense budget for FY 2017 will increase $8,058,439 mainly due to an increase in salaries, supplies, capital outlay, and debt service payments. Individual Fund Analysis Education Fund The District 304 enrollment decreased slightly. Enrollment is trending down because of the housing decline. There has been a decrease in low-income students receiving free lunch and waived registration fees. Property taxes are increasing by.8%, State Revenue is decreasing by 9.18%, and Federal Revenue is decreasing by 10.27%. Local revenue increased by 4.03 % mainly due to the increase in student fees. Overall, Revenue increased by 2.70% Expenses for the education fund increased by 6.60%. Although staff increased per the staffing plan, and salary and benefits increased, a large amount of retirements offset the increases. Purchased services and supplies increased slightly. Other objects increased 21.22% due to tuition increases. Capital outlay increased by 17.27% due to increases in technology purchases. Operations and Maintenance Fund The property tax amount for this year decreased by $435,658. In FY 2011 property tax was $11 million. This year it is $9.6 million. This year we are again at our maximum tax rate of.75 per 100 assessed valuation. Although the EAV increased, it is still not enough to keep up with the increased building maintenance costs. With expenses exceeding revenues for the past 6 years, the net effect has caused the fund balance to decrease substantially. The Operations and Maintenance Fund will expend approximately $1,871,655 for major maintenance projects in FY Projects include floor and carpet replacement, HVAC replacements, and a 6-69

78 classroom Mobile Unit. The 10-year Health, Life Safety repairs will begin this year. The replacement and maintenance of major equipment is being deterred until funding becomes available. To accommodate the need for space at the high school, the District purchased a six-classroom mobile. The District incurred a bank loan in the amount of $650,000 with annual payments of $140,717 for this purchase. Debt Service Fund The District has issued debt approved by voter referendum, to construct several new schools to accommodate enrollment and projected enrollment growth. In the past 7 years, the District has added one additional middle school and two additional elementary schools as well as completely renovating two elementary schools. The debt for these projects is scheduled to be paid over the next fifteen years through Each year, the District reviews the outstanding debt issues to identify areas of refunding for a cost savings to the District. A refunding occurred in December 2016 that brought significant savings to the District. This is the sixth year for debt service abatement. To date, the amount transferred from the Education fund to the Debt Service fund for abatement is approximately $28 million. These funds are then abated against the debt service payment to keep the increase as level as possible. The refunding in December 2016 and December 2017 will level debt payments to approximately $15 million per year. Standard and Poor s assigned District 304 with a bond rating of AA+ Stable. The assignment of the AA+ rating with a positive outlook reflects the district s strong financial position with stable reserves and revenues, a large tax base within the Chicago metropolitan area, and manageable debt burden. Transportation Fund The District presently owns forty nine (49) 71-passenger buses and ten (10) 27-passenger buses. The District is also leasing four (4) 27-passenger buses for Special Education Transportation purposes. This year the district moved a portion of special needs transportation back into district. With this move, the district purchased four (4) 21+1 lift buses. In addition, the high school operates and maintains three Multifunction School Activity Buses for sports and club transportation needs. These vehicles have greatly reduced the cost of transportation for small groups of students. The District also owns two vehicles utilized for the Drivers Education program. The District is currently on a two-year bus buyback program. The District purchases buses, maintains them for two years and sells them back to the manufacturer for a set price as specified in the bid, currently 86%. These buses will be returned through the buy-back program in June For the school year, the District reduced outsourcing for special needs transportation. Although there was an initial cost to purchase four new lift buses, providing our own transportation for special needs students will result in a cost savings of approximately $881,435 over a five-year period. In addition to the cost savings, the District is able to provide a consistent and less stressful transportation experience for our students with special needs. The District extended a two-year contract for an additional two years for limited Special Education Transportation services with Spare Wheels Bus Service for additional transportation as needed. The State is scheduled to reimburse for Special Education transportation at the rate of 100% of allowable expenses. Regular and Vocational Transportation reimbursements are scheduled to be reimbursed at 80% of allowable expenses. The State reimbursement is paid in the year following the expenditure. 70

79 Municipal Retirement/Social Security Fund The District is currently funding the Municipal Retirement/Social Security Fund (IMRF) under rates set by IMRF. The 8-year rate averages 10.8% per year. Funds have been sufficient to cover IMRF, Medicare, and FICA costs. The District plans to levy to adequately fund IMRF and FICA/Medicare sub-funds on a yearly basis. The FICA and Medicare contribution rates have remained constant for many years at 6.2% and 1.45% respectively. The IMRF rate, imposed by the State of Illinois, had also remained fairly constant for several years. Unfortunately, the assets held by the IMRF were impaired during the recent economic downturn. In order to recoup losses incurred in the IMRF investment portfolio, IMRF will be increasing the rate over the next several years. The District IMRF rate for calendar year 2016 is 10.93% increasing to 11.25% for calendar year Working Cash Fund A Working Cash Bond Issue, June 2001, was passed by referendum to establish a reserve for cash flow purposes thus eliminating Tax Anticipation Warrants. The bond was issued for $11.6 million. This fund has been maintained at a minimum balance of $14 million. Tort Immunity Fund Beginning in FY 2009 the ISBE required school districts to report their separate Tort Immunity tax levies and accumulated reserves in a separate fund rather than as a component of the Education Fund. The Tort fund revenues and expenditures have been reallocated to the Education Fund. Tort expenditures which were for security staff, workers comp insurance, liability insurance, unemployment insurance, and legal bills are now classified as Education Fund expenditures. In the FY 2017 budget, $65 was budgeted for revenue (interest on current balance) and $0 was budgeted for expenditures. Fire Prevention and Safety Fund The Fire Prevention and Safety Fund is required if a tax is levied or bonds are issued for purposes of fire prevention, safety, energy conservation, or school security. Every 10 years, each local board is required to survey its school buildings and make any recommendations in accordance with the Health Life Safety Code. This requires an Architect or Engineer licensed in the State of Illinois to survey and report on the safety of its school buildings. A timeline is then applied to each of the violations, requiring the district to take corrective action within the time frame required by law. Starting in 2015 through 2020, the district s 12 buildings are scheduled for 10-year Health/Life Safety Surveys. The district can levy up to $.10 per $100 assessed valuation for these repairs. In the Facility Capital Plan, HLS repairs are budgeted based on the 2015 surveys. This levy year effective with the property taxes, the district has levied $.05 or approximately $211,000. The district will continue to levy in Fire Prevention and Safety on an as needed basis. 71

80 Fund Structure and Measurement Basis The accounts of the District are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund balances, revenues and expenditures as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid administration in demonstrating compliance with finance-related legal and contractual provisions. The District has the following fund types. Governmental Funds are used to account for the District s general governmental activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e., when they are both measurable and available. Measurable means that the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The District considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for un-matured principal and interest on general longterm debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Governmental funds include the following fund types. General Funds The General Funds are the general operating funds of the District. They are used to account for financial resources except those required to be accounted for in another fund. The General Funds consist of the following: Educational Fund This fund is used for most of the instructional and administrative aspects of the District s operations. The revenues consist primarily of local property taxes, state government aid, and Corporate Personal Property Replacement Tax (CPPRT). Operations and Maintenance Fund This fund is used for expenditures made for repair and maintenance of District property. Revenues consist primarily of local property taxes and District rentals. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than those accounted for in the Debt Service Fund, Capital Projects Funds or Fiduciary Funds) that are legally restricted to expenditures for specified purposes. Each of the District s Special Revenue Funds has been established as a separate fund in accordance with the fund structure required by the State of Illinois for local educational agencies. These funds account for local property taxes that are restricted to specific purposes. A brief description of the District s Special Revenue Funds follows: Transportation Fund This fund accounts for all revenue and expenditures made for student transportation. Revenue is derived primarily from local property taxes and state reimbursement grants. Illinois Municipal Retirement Fund (IMRF) This fund accounts for the District s portion of pension contributions to the Illinois Municipal Retirement Fund. Revenue to finance the contributions is derived from local property taxes and CPPRT taxes. Tort Fund The Tort Fund is used for to account for revenue and expenditures related to legal and insurance needs of the District. 72

81 Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources for and the payment of general long-term debt principal, interest and related costs. This fund accounts for the periodic principal and interest payments on the bond issues of the District. The primary revenue source is local property taxes levied specifically for debt service. Capital Projects Funds Capital Projects Funds are used to account for the financial resources to be used for the acquisition or construction of and/or additions to, major capital facilities. Currently the District s Capital Projects Funds are inactive. The District s Capital Projects Funds are: Capital Projects Fund This fund is used to account for The District s Facility Improvement Plan projects determined through the District Capital Plan. Fire Prevention and Safety Fund This fund is used to account for state approved Life Safety projects financed through serial bond issues or local property taxes. Fiduciary Fund Types (Trust and Agency Funds) Fiduciary Funds (Trust and Agency Funds) are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. Expendable Trust Fund (Working Cash Fund) The Working Cash Fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. The fund accounts for assets where both the principal and interest may be spent. A portion of the fund may be abated to other funds, or the entire fund may be permanently abolished to the General Fund in accordance with state statutes. Agency Funds The Agency Funds are custodial in nature and do not involve the measurement of results of operations. These funds are used to account for assets that the District holds for others in an agency capacity. The District s agency funds are made up of student activity accounts. 73

82 Account Structure Revenues of the District are classified by fund and source. The three primary categories are Local Sources, State Sources, and Federal Sources. Major revenues within each category include Local Sources Property Taxes, Corporate Personal Property Replacement Taxes (CPPRT), Student Fees, Interest Earnings; State Sources General State Aid, Special Education Aid and Transportation Reimbursement; Federal Sources NCLB Title Grants; IDEA Special Education. ACCOUNT NUMBER DESCRIPTION Fund Independent Fiscal Accounting Entity XX-X-XXX-XXXX-XXXXXX 10 Education Fund 60 Capital Projects Fund 20 Operations & Maintenance Fund 70 Working Cash Fund 30 Debt Service Fund 80 Tort Fund 40 Transportation Fund 90 Fire Prevention & Safety Fund 50 Municipal Retirement Fund Ledger General Ledger - Revenue/Expenditure Account XX-X-XXX-XXXX-XXXX-XXXXXX A Asset Account Q Fund Balance Account L Liability Account R Revenue Account E Expense Account Location 10 Schools and District Administered Programs XX-X-XXX-XXXX-XXXX-XXXXXX 201 Geneva Middle School South 102 Harrison Street Elementary 202 Geneva Middle School North 103 Western Avenue School 300 Geneva High School 104 Heartland Elementary 500 Central Office 105 Mill Creek Elementary 600 Transportation 106 Fabyan Elementary 700 Food Service 107 Williamsburg Elementary 800 Friendship Station 900 District Function XX-X-XXX-XXXX-XXXX-XXXXXX State Code IPAM Compliant Object XX-X-XXX-XXXX-XXXX-XXXXXX Service or Commodity Acquired 1 Salaries 5 Capital Outlay 2 Employee Benefits 6 Other Objects/Tuition 3 Purchased Services 7 Non-capitalized Equipment 4 Supplies & Materials 8 Termination Benefits Source XX-X-XXX-XXXX-XXXX-XXXXXX State/Federal Source Code The budgeted expenditures of the District are classified by fund, ledger type, location, function, object, and source. The State budget and financial reporting requirements are at the fund-function-object level. The primary working budget of the District is at the building level. Examples of function classifications are Instruction, Support Services and Community Services. Examples of object classifications are Salaries, Employee Benefits, Supplies, and Capital Outlay. 74

83 Fund Balances According to Government Accounting Standards, fund balances are to be classified into five major classifications; Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. A. Nonspendable Fund Balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The not in spendable form criterion includes items that are not expected to be converted to cash, for example inventories and prepaid amounts. B. Restricted Fund Balance The restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the entity. Things such as restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. The District has several revenue sources received within different funds that also fall into these categories 1. Special Education Revenues and the related expenditures of this restricted tax levy are accounted for in the Educational Account. Expenditures exceeded revenue for this purpose, resulting in no restricted fund balance. 2. Tort Immunity Account Expenditures and the related revenues are accounted for in the Tort Immunity Account. Revenues exceeded expenditures for this purpose, resulting in a restricted fund balance of $28, State and Federal Grants Proceeds from state and federal grants and the related expenditures have been included in the General Fund and various Special Revenue Funds. At June 30, 2016, expenditures exceeded revenue from state and federal grants, resulting in no restricted balances. 4. Social Security Expenditures and the related revenues of this restricted tax levy are accounted for in the Municipal Retirement/Social Security Fund. Revenues received exceeded expenditures for this purpose, resulting in a restricted fund balance $902,918. The remaining balance is restricted for Municipal Retirement purposes. 5. Capital Projects Funds Expenditures and the related revenues are accounted for in the Capital Projects and Fire Prevention and Safety Funds. All equity within these funds are restricted for the associated capital expenditures within these funds. 75

84 C. Committed Fund Balance The committed fund balance classification refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government s highest level of decision-making authority (the School Board). Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts. No committed balances existed as of June 30, D. Assigned Fund Balance The assigned fund balance classification refers to the amounts that are constrained by the government s intent to be used for a specific purpose, but are either restricted or committed. Intent should be expressed by (a) the governing body itself or (b) a body (a budget or finance committee, for example) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. No assigned balances existed as of June 30, E. Unassigned Fund Balance The unassigned fund balance classification is the residual classification for amounts in the General Operating Funds for amounts that have not been restricted, committed, or assigned to specific purposes within the General Funds. A negative unassigned fund balance may be reported in other governmental funds if expenditures incurred for specific purposes exceeded the amounts restricted, committed or signed to those purposes. F. Expenditures of Fund Balance Unless specifically identified, expenditures disbursed act to reduce restricted balances first, then committed balances, next assigned balances, and finally act to reduce unassigned balances. Expenditures disbursed for a specifically identified purpose will act to reduce the specific classification of fund balance that is identified. To maintain and protect the long-term financial capacity of the district, the Board of Education will not adopt a budget where expenditures exceed the combination of revenue and fund balance. Board Policy 6220 states, unrestricted reserves in the operating funds shall be maintained at a level equal to 30.0% of the operating budget. (The operating budget is composed of the education, operations & maintenance, transportation, retirement, tort immunity and the working cash fund.) As of June 30, 2016, the operating funds showed a balance of $43.3 million or 48.1% of the operating fund expenditures. There is no minimum or maximum level. Transfer of Funds Inter-fund loans and transfers within funds shall be made only through Board approval and in compliance with Illinois School Code. Any inter-fund loan must be repaid by June 30 th of the fiscal year 76

85 Budget Development Process The budget development is a year round process. Many levels of input and decision making from staff members, administrators, and the Board of Education goes into the development of the budget. The criteria for the budget are: Goals and priorities of the Board of Education Mandates by the State and Federal governments Programs of Instruction Facility Capital Improvement Plan Technology Plan Staffing Plan Contractual agreements As these areas are discussed and plans are approved, the budget is presented in tentative form to the Board of Education for approval of adoption in September. The budget was developed using the most current information available at this time. The budget is the guideline for all expenditures within the district. Education Fund The budget process coordinates many different components before the final budget is in place. Building administrators are given a per student allocation. This fund allocation is budgeted for all building needs except salaries and benefits. Salaries are based on employee types, contract increases, staffing needs, and retirement savings. Benefits are based on final rates that include medical, dental, life, and pension. This year s staffing plan added $134,000 to the budget for a Science Instructional Facilitator, Instructional Coaches, Student Assistance Coordinator, and a Psychologist. The Technology 1:1 initiative continued, expanding the issuance of devices for grades 1,4,6,9, and 10 at a cost of $795,000. Any major one-time purchases are budgeted. Revenues remained relatively level with the only increases in Property taxes. Operations and Maintenance Fund The Director of Operations and Maintenance reviews custodial, maintenance, and grounds needs to develop a staffing plan and Facility Capital plan for the maintenance and operation of the District s facilities. An HVAC position was added but was cost neutral as the outsourcing offset the salary cost. Benefits increased per the provider rate increase. Utilities and supplies are level with the prior year s budget. The Facility Capital Plan is a seven-year plan that is updated annually. This year s capital plan is as follows: Geneva High School Modular Classroom Geneva High School Steam Line Replacement Geneva High School Secondary Pumps Geneva High School Flooring Replacement Middle School Health/Life Safety Repairs Geneva Middle School South Door Installation Western Avenue Elementary Replacement of Chiller, Variable Frequency Drives, and Secondary Pumps Mill Creek Elementary Replacement of Variable Frequency Drives and six Air Handling Units 77

86 Fabyan Elementary Replacement of Terrazzo Floor Tile Installation of Emergency Generators at Transportation and District Office Transportation Carpet Replacement The cost to complete these improvements was budgeted at $1,871,655. These costs are budgeted in the Education, Operations and Maintenance, and Transportation fund accordingly. Capital Projects are completed in the summer when students and staff are not present. All of the projects listed have been completed during June, July and August Revenues remained relatively level with the only increases in Property taxes. The mobile classroom is financed through a local bank for a period of 5-years. Original loan amount is $650,000 with annual payments of $140,717. Transportation The Director of Transportation reviews the transportation needs of the district and budgets accordingly. With the addition this year of Special Needs transportation, four lift buses were purchased. A Supervisor and drivers for these routes was added. Although this is an additional cost, the offset of less outsourcing brings a cost savings to the district of approximately $176,000 annually. The district is on a two-year bus buy-back program. Buses were sold and purchased this year. Revenues remained relatively level with the only increases in Property taxes. Debt Service In 2016, the Geneva Board of Education refunded (refinanced) $32,440,000 in bonds, which not only saves the district substantial interest fees, but also keeps the Debt Service payments level. Without the refunding, Debt Service payments would have increased from $15 million per year to nearly $25 million per year. Since the property tax rate is partially based on the Debt Service payments, the refunding prevents the property tax rate from increasing significantly. The budget for this year reflects this refunding, keeping the budget level in revenue and expense. 78

87 Budget Calendar Budget Calendar for October 13, 2015 October 26, 2015 November 3, 2015 November 23, 2015 November 23, 2015 December 29, 2015 January 2016 February 2016 March 2016 July 25, 2016 July 28, 2016 July 25, 2016 September 12, 2016 September 12, 2016 September 15, 2016 Board of Education review of debt structure Board of Education adopts Resolution to levy 2015 Property Taxes (Not less than 20 days prior to tax levy adoption) (35 ILCS 200/18-60) Publish notice for tax levy hearing (not more than 14 days nor less than 7 days prior) (35ILCS 200/18-80) if needed Board of Education Public Hearing on 2015 Tax Levy (35 ILCS 200/18-70) if needed Board of Education adopts the 2015 Tax Levy Tax Levy must be filed with County Clerk by last Tuesday in December (105 ILCS 5/17-11) Budget materials distributed to Administrators Preliminary Budgets due to Business Office Tentative Budgets distributed to Administrators Present budget in tentative form to Board of Education Publish Notice for budget hearing (no less than 30 days prior to Public Hearing) (105 ILCS 5/17-1 Board of Education adopt budget in tentative form and establish date of Public Hearing Board of Education to hold Public Hearing on proposed budget Board of Education adopt budget by Resolution (meets legal requirement to adopt budget by end of first quarter fiscal year) (105 ILCS 5/17-1 Budget for Fiscal Year filed with Kane County Clerk Bold indicates key Board of Education action dates 79

88 Budget Management Process Throughout the year, budget administrators can review monthly transaction reports on the financial software system. These reports include all of their expenditures for the month as well as any encumbered funds. Requisitions are submitted to the Principal or Department Head for approval. The requisition is then entered into the system to generate a purchase order. Once received, the approval for payment is submitted to the Business Office. Discrepancies discovered during the budget administrator s monthly reviews are investigated and corrected in a timely manner. The Human Resources and Payroll systems are integrated. The Board of Education reviews financial results compared to budget on a monthly basis. The Board is very cognizant of the Budget s sensitivity to salaries, CPI, increased cost of supplies, and delayed and prorated state and federal revenues Other Revenues Several Organizations support district funding through scholarships: Geneva Academic Foundation GAF provides funding for staff scholarships. Each year staff members submit an application describing the initiative and how it pertains to student learning. The applications are reviewed and awarded by a committee. This year GAF provided $21,000 for Interactive white boards, document cameras, desks, and a wireless video transmission system at the high school broadcasting center. Fabyan Foundation Fabyan Foundation provides forty (40), $5,000 student scholarships. Students apply for the scholarship. The application is reviewed by a committee and awarded to the student for a four-year period. The student must maintain a 3.0 GPA to continue to receive the funding each year. The Foundation also awards a technology grant that supports technology in the classroom. This year, the grant amount is $109,000 and provided for Interactive Touch Boards and Kindergarten Tablets. Project Lead the Way Project Lead the Way, a STEM Program, is in its third year at the District. An anonymous donor has supported the program each year with a monetary amount needed to continue the program. This year $65,800 was donated. 80

89 FINANCIAL SECTION BUDGET GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 GENEVA, ILLINOIS 81

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93 Fund Accounting Illinois school districts are required to adhere to the Illinois Program Accounting Manual for Local Education Agencies commonly known as the IPAM manual. This document establishes the standardized accounting system used by all districts in Illinois. A school districts accounting records, budgets and financial reports are organized and reported on a fund basis. A fund is a separate and independent accounting entity with its own assets, liabilities and fund balances. There are nine funds established in the school district budget: 10 Educational 20 Operations and Maintenance 30 Debt Service 40 Transportation 50 Municipal Retirement/Social Security 60 Capital Projects 70 Working Cash 80 Tort 90 Fire Prevention and Safety Each fund must operate on its own and keep its accounting records separate from each other. The loaning of funds from one fund to another is allowed between some of the funds but not among all funds. This can facilitate the internal borrowing of funds to meet cash flow needs. This reduces the need for borrowing of funds from outside sources or issuing Tax Anticipation Warrants. These inter-fund loans must be paid back to the original fund by the end of the fiscal year. Governmental Funds The Governmental Funds analysis is a compilation of all District funds combined together. The compilation of the total funds is for discussion purposes only due to restrictions that exist limiting the uses of some funds and the ability to transfer dollars between funds. Total revenues for all funds are budgeted at an increase of 2.7% in FY 2017 while expenditures are budgeted at an increase of 8.3 %. Local property taxes will comprise approximately 87.1% of total revenue for the District in fiscal year ending June 30, Other local sources of revenue are 4.9% of total revenue. State sources, which are comprised of unrestricted General State Aid and restricted categorical aid, are estimated to be 6.3% of total. The General State Aid formula is based on a combination of average daily attendance (ADA), the amount of Corporate Personal Property Taxes received and the District s equalized assessed value (EAV). The calculation of available local resources per pupil triggers an alternate formula calculation, which reduces the amount of funds received by the State. Federal Sources of revenue will provide 1.6% of total revenue. Expenditures in total are expected to be more than revenues due to a decrease in State and Federal funding, an increase in salaries, Special Education tuition costs, capital improvements, and Debt Service payments. The deficit will be funded with prior year fund balance. 85

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101 Operating Funds The Operating Funds analysis is a compilation of funds used to pay for day-to-day expenses of the district. These funds are Education, Operations and Maintenance, Transportation, Municipal Retirement, Working Cash, and Tort Immunity. They do not include Debt Service, Capital Projects, or Fire Prevention and Safety funds. The foundation of the Operating Funds budget is to ensure there are sufficient funds to maintain the continued operations of the district. The Operating Funds budget is the plan for the receipt and expenditure of funds for all instructional activities; support services; building maintenance; and transportation services. The budget may be amended as needed within the fiscal year. Total revenues for the operating funds are budgeted at $80,319,690, an increase of 2.96% in FY 2017 and expenditures are budgeted at $82,912,335, an increase of 8.11%. This is a deficit of $2,592,645. This deficit is offset by the sale of buses ($1,691,015) leaving a deficit of 1,074,183. The deficit balance will be funded with prior year fund balance. Local property taxes will comprise approximately 85% of total operating revenue for the District in fiscal year ending June 30, Other local sources of revenue are 6.0% of total operating revenue. State sources, which are comprised of unrestricted General State Aid and restricted categorical aid, are estimated to be 7.6% of operating total. The General State Aid formula is based on a combination of average daily attendance (ADA), the amount of Corporate Personal Property Taxes received and the District s equalized asset value (EAV). The calculation of available local resources per pupil triggers an alternate formula calculation, which reduces the amount of funds received by the State. Federal Sources of revenue will provide 1.6% of total operating revenue. Operating expenditures in total are expected to be more than operating revenues due to a decrease in Federal funding, an increase in salaries, Special Education tuition costs, and supplies and materials. Capital improvements, which include the capital plan and technology plan, have increased by 22%. The fund balance of the Operating Funds on June 30, 2016 was $43,341,698. Of these funds, none are classified as nonspendable. Transportation $4,791,887, Municipal Retirement/Social Security $1,805,837, and Tort Immunity $28,791 are classified as restricted. All other funds are unassigned. The District s annual other post-employment benefit (OPEB) obligation at the end of the school year was $314,765. This amount is not included in the budget but is included in the District s audited Comprehensive Annual Financial Report (CAFR). The plan provides for the District to pay for medical, dental, and life insurance for retired employees. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. 93

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109 EDUCATION FUND 101

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111 Education Fund The Educational Fund is utilized to account for most of the instructional, co-curricular, special education, pupil support and administrative aspects of the District s educational operations on a day-to-day basis. Revenue Local Sources of revenue are budgeted to increase by 4.0% in Fiscal Year In addition to property taxes, revenue for the Education Fund is provided from many sources. Other Local Sources of revenue include Corporate Personal Property Replacement Taxes (CPPRT), athletic event revenues, donations, summer school tuition, registration fees, food sales, and investment earnings. State Sources of revenue are budgeted to decrease by 9.2% in Fiscal Year State sources are comprised of unrestricted General State Aid and restricted categorical aid. General State Aid is projected to decrease slightly. The General State Aid formula is based on a combination of average daily attendance (ADA), the amount of Corporate Personal Property Taxes received and the District s EAV. The calculation of available local resources per pupil triggers an alternate formula calculation, which reduces the amount of funds received by the State. Other State Sources of revenue include Special Education grants, Career and Technical Education (CTE), Bilingual, Drivers Education reimbursement, and the State Free Milk program reimbursement. Federal sources of revenue include NCLB Title I and Title II, IDEA special education reimbursement, Perkins vocational education grant, Medicaid reimbursement, and Special Milk program revenue. Expenditures Total education fund expenditures for FY 2017 will be greater than FY This is due to several factors: Salary increases per agreement Technology plan increased as the implementation of 1:1 devices continues Tuition increases for Special needs and Vocational training The majority of the increases in expenditures relate to salaries, supplies, purchased services (professional development) and tuition costs. The salaries reflect the results of contract and agreement negotiations with all employee groups. The District has an Agreement with the Education Association, which will expire August The District has an Agreement with the Educational Support Personnel Association, which will expire June 30, 2018.The District added a new union this year. The Geneva Support Staff Association (GSSA). The Geneva Education Association (GEA) is the teachers union and the District has a three-year contract through The percentage change is 3.65% as negotiated by the Board of Education and the GEA The percentage change is 3.65% as negotiated by the Board of Education and the GEA The percentage change is 1% plus the ten year rolling CPI average as negotiated by the Board of Education and the GEA The increase for and is a step increase of 2.65% and an annualized increase of 1% on the base salary rate for The support personnel group is non-union and has an agreement as follows: 103

112 The Education Support Personnel includes clerical and instructional assistant positions. The district has a two-year agreement with this group. An hourly rate schedule is adopted by the Board of Education. The and the percentage change is 3.5% each year The Geneva Support Staff Association (GSSA) is a union formed this year for Special Education Assistants, Kindergarten Assistants, and Library Assistants. The District is currently in negotiations with the union. Collaborative Teacher Project The Collaborative Teacher Project, or CTP, is an initiative in Geneva School District that empowers certified staff to identify topics of particular importance to them and to develop collaborative teams that are provided with time and resources during the school year to engage in customized professional development. Proposals are submitted by staff members who are willing to facilitate the learning teams. Teachers receive technology support and time to collaborate with each other, but the majority of this professional development initiative occurs on the teachers own time. This is in preparation for the 1:1 initiative and the Common Core standards that will be in full operation by Technology Plan Portable Devices Many of our students already have access to district-provided portable devices that are used for instruction, inquiry, and assessment. Over the next five years, we are hoping to transform learning in Geneva by equipping every student in Geneva schools with a portable device. Access to and familiarity with such technology is essential to preparing students for the real world. We recognize that such an effort is a large investment, so we want to ensure that such devices are used to their fullest potential. We will continue to provide robust professional development for educators so teachers are skilled in using these technologies to inspire critical thinking and harness creativity. The District has a Technology Plan that covers the implementation of devices for all students with a phase in process, the replacement of existing devices for students and staff, professional development for staff, and infrastructure to support technology in the buildings. This year s technology plan was broken down into three areas; Learning and Teaching, Equipment and Services, and Network Improvement. The cost for these three areas was budgeted at approximately $1 million. As we move forward into 21 st Century learning, costs shift from textbooks to technology. The projected costs to achieve the goal of devices for all students, is approximately $600,000 per year. All school districts are experiencing this paradigm shift. Digital Leadership As society becomes more and more reliant on technology, it is up to our school leaders to embrace the power of digital technologies to develop school cultures that are transparent, relevant, meaningful, engaging, and inspiring. That means that our leaders must overcome fears and misconceptions about technologies such as social media and learn how to appropriately employ digital tools to their full potential. It also means that they must relinquish the control to which they are accustomed and trust teachers and students to use these tools to explore, learn, and create. Being able to use digital tools such as social media to their fullest potential is an essential skill for the 21 st century world. Rather than tell students only what they cannot do with these tools, school leaders in Geneva 304 seek to create a culture that encourages students to use these tools in responsible and productive ways. Curriculum Additions This year several curriculum initiatives have been continued: Project Lead the Way 104

113 This is the third year for Project Lead the Way. Project Lead the Way (PLTW) provides students with nationally recognized engineering curriculum that is aligned with many of the top engineering colleges and is supported at the state level by the University of Illinois. The first course in the PLTW sequence, Introduction to Engineering Design, is continues to be offered this year for honors credit to high school students interested in engineering and design or another technical career. Project Lead the Way curriculum is also being implemented at the middle schools in existing technology education courses. Additional courses and PLTW curriculum is being offered at the middle schools and high school this school year. This year $65,800 was donated for a third year by an anonymous donor to fund this course work. Virtual Enterprises International High school students are also receiving real-world experience with the continuation of Virtual Enterprises International (VEI). VEI provides a simulated business environment in which students create and manage a virtual company, conducting business with other firms nationally and internationally. This gives the students leadership opportunities and the ability to acquire global economic knowledge of business careers. Other Post-Employment Benefits (OPEB) The District contracts with an outside provider to determine the liabilities and expenses for Other Post- Employment Benefits (OPEB) under GASB Statement No. 45. The annual OPEB obligation for the 2016 fiscal year is $314,765. Fund Balance The District challenges itself every year to continue looking for new cost containments and efficiencies. We realize that the longer we can sustain our fund balance, the more beneficial it will be to the district. The fund balance in the Education Fund is decreasing each year starting in FY 2016 and continuing with projections. The decreasing State and Federal funding as well as increasing salaries and services, contributes to the lower fund balance. Controllable expenditures will be reviewed annually for cost reductions, to help the District maintain a level fund balance. Beginning in , by Board Resolution, any fund balance over $15 million was transferred to the Debt Service Fund. This year the Board passed a resolution to bring the fund balance to $14 million with an abatement of $4,251,001. These funds are abated back to the Debt Service payments to lower the tax levy. To date the District has abated $28 million. This will be the last of the abatement transfers as the refunding of bonds moves forward.. 105

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121 Operations and Maintenance Fund The Operations and Maintenance Fund (O & M Fund) is for revenue and expenditures related to the operations and maintenance of the grounds and facilities including utilities and major maintenance projects. Revenue The primary source of revenue for the O & M Fund is local property taxes. The O & M Fund is a fund limited by the Tax Cap. This is the fifth year the levy rate has hit its maximum level. Other local sources of revenue are interest income and facility rental income. A portion of General State aid was shifted to this fund from the Education fund. Expenditures Expenditures in the O & M Fund are for purposes of maintenance, cleaning and upkeep, and refurbishing of the district facilities. These expenditures include salaries, supplies, contracted services, equipment needed to provide these services and construction costs. The Custodians, Grounds, Maintenance, and Security Staff Working Conditions Agreement include all positions within the Operations and Maintenance department. The district has a threeyear agreement through The percentage change is 3.5% increase for all Operations personnel The percentage change is 3.5% increase for all Operations personnel The percentage change is 1% plus the 10 year rolling average of the Consumer Price Index (CPI) for all Operations personnel The Custodians, Grounds, Maintenance, and Security employee insurance contribution rates for FY 2017 are paid 95% by the District. For family coverage, the total cost of the premium will be the total cost of family insurance minus 95% of the monthly insurance premium for single coverage. The balance is split in the following manner: the District pays 60% of the balance; the employee pays 40% of the balance. Dental insurance will be provided at 100% cost to the District. District 304 is comprised of nine schools. District 304 prides itself on outstanding and continual upkeep and improvement to all facilities. The Master Facility Plan was designed and implemented in The plan reviewed all buildings in the district and provided a plan to bring all buildings in compliance with Health and Life Safety guidelines as well as providing information for maintenance of each facility and the construction of two new elementary schools. The Master Facility Plan was completed with the opening of our newest elementary school in fall of The Capital Improvement Program was developed in Its purpose has been to identify and fund large capital expenditures for renovation, remodeling or renewal of our facilities. It is composed of either major maintenance projects or capital improvement projects. The Capital Improvement Plan budget for is $1,871,655. To accommodate the need for space at the high school, the District purchased a six-classroom mobile. The District incurred a bank loan in the amount of $650,000 with annual payments of $140,717 for this purchase. The District is currently conducting 10-year Health Life Safety audits that will be part of the Capital Improvement Plan. The following projects were completed for this fiscal year: Geneva High School Modular Classroom Geneva High School Steam Line Replacement Geneva High School Secondary Pumps Geneva High School Flooring Replacement Middle School Health/Life Safety Repairs 113

122 Geneva Middle School South Door Installation Western Avenue Elementary Replacement of Chiller, Variable Frequency Drives, and Secondary Pumps Mill Creek Elementary Replacement of Variable Frequency Drives and six Air Handling Units Fabyan Elementary Replacement of Terrazzo Floor Tile Installation of Emergency Generators at Transportation and District Office Transportation Carpet Replacement The Technology infrastructure outlined in the Technology Plan is budgeted in Operations & Maintenance. The budget for FY 2017 is $194,000. This includes internet service enhancements, firewall/filter upgrade, network improvements/equipment replacements, and phone system upgrades. Each building s administrative team compiles a school-generated list of projects for facility improvements and major maintenance needs, which represent potential future projects. The projects are not guaranteed to move forward but are intended to assist with planning and budgeting for the future. The Capital Improvement Plan is a budget-planning tool in which the projects are determined by budget, instructional needs, school requests, and maintenance concerns. Data is updated annually and adjusted based on current need. A Facility Task Force comprised of the Director of Operations, Assistant Superintendent for Business, the Superintendent, and two Board of Education members, reviews proposed projects. The Superintendent makes a recommendation to the Board of Education for final approval of projects. Because of limited funds in the Operations and Maintenance budget, the Capital Improvement Plan was carried out to seven years instead of five years. Fund Balance It will be important to sustain cost containment in the O & M Fund in order to ensure that facility maintenance is not deferred, thereby significantly depreciating the value of the district s and communities valuable assets. This year revenues over expenses has a shortfall of $2.5 million. General State Aid is being shifted from the Education fund to help maintain a positive fund balance. The deficit is being funded from the prior year s fund balance. The reduction of property tax revenue coupled with the increase in expenditures has caused the fund balance in the Operations and Maintenance Fund to decrease steadily over the past 4 years and will continue to do so until the EAV increases or a new funding source is determined. 114

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129 Debt Service Fund The Debt Service Fund is to account for the accumulation of resources and the payment of principal and interest on general long-term debt, and related costs. Revenue Revenue for the Debt Service Fund is provided from local property taxes. The Debt Service Fund is a not limited by the Tax Cap. However, it is limited by the amount of non-referendum debt service that can be paid by the District on an annual basis. The legal maximum allowable amount was established with the PTELL law of 1995 and restricts future bond issuances to the aggregate debt service extension base arising from the 1994 tax levy. Expenditures Expenditures are for debt service commitments only. General Obligation Bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds and taxable debt certificates currently outstanding are as follows: June 7, 2001, $19,499,905 Building Bond Issue due in annual installments of $35,819 to $3,607,240 through December 1, 2004, $41,184,192 Building Bond Issue due in annual installments of $10,000 to $6,240,000 through July 1, 2007, $85,820,000 Site and Construction and Refunding Bond Issue due in annual installments of $2,650,000 to $15,705,000 through July 1, 2007, $7,550,000 Refunding Bond Issue due in annual installments of $65,000 to $915,000 through January 1, 2008, $14,585,000 Site and Construction Bond Issue due in installments of $600,000 to $2,590,000 through March 3, 2010, $2,615,000 Refunding Bond Issue due in annual installments of $5,000 to $2,525,000 through November 29, 2011, $8,755,000 Refunding Bond Issue due in annual installments of $185,000 to $5,115,000 through January 31, 2012, $4,165,000 Refunding Bond Issue due in annual installments of $1,410,000 to $2,755,000 through The District is consistently reviewing bond issues to identify cost savings when applicable. The Series 2016 bond issued in December, fully advance refunds the callable portion of the 2007A and 2008 Series Bond for a savings to the District of approximately $5 million. In addition, the 2007B Bond Issue was paid in full using funds abated to the Debt Service Fund. The District will complete the refunding in December 2017 to level debt service payments to $15 million per year. Although the restructuring of the debt extends the payoff an additional four years, there is a substantial savings to taxpayers, as the payments were originally scheduled to increase to $25 million per year. 121

130 Standard & Poor s assigned District 304 with a bond rating of AA+ Stable. The assignment of the AA+ rating with a positive outlook reflects the district s strong financial position with stable reserves and revenues, a large tax base within the Chicago metropolitan area, and manageable debt burden. Debt Margin According to the Illinois School Code, school districts maintaining grades K through 8, or 9 through 12 shall become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate not exceeding 6.9% on the value of the taxable property. Unit (K-12) districts shall not become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding 13.8% on the value of the taxable property. Additional indebtedness may be incurred in an amount not to exceed the estimated cost of acquiring or improving school sites or constructing and equipping additional building facilities under the following conditions: There is an increase in enrollment by not less than 35% or by not less than 200 students The Regional Superintendent of Schools and the State Superintendent of Education concur in enrollment projections and the estimated costs of the new buildings The voters in the school district approve a proposition for the issuance of the bonds Calculation of Statutory Debt Limitation and Debt Margin In January 2012, the Board of Education passed a resolution for abatement from the Education Fund to the Debt Service Fund. The resolution allows any amount over $15 million on the June 30th fund balance to be transferred to the Debt Service Fund for purposes of lowering the levy and to keep the debt service levy amount as close to the 2010 rate as possible. This is the sixth year for debt service abatement. To date, the amount transferred from the Education fund to the Debt Service fund for abatement is approximately $28 million. These funds are then abated against the debt service payment to keep the increase as level as possible. The refunding in December 2016 and December 2017 will level debt payments to approximately $15 million per year. Fund Balance The fund balance is intended for cash flow purposes for future debt payments. 122

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135 TRANSPORTATION FUND 127

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137 Transportation Geneva School District provides transportation as mandated to any child residing more than 1.5 miles from their assigned school. The Transportation Fund is for revenue and expenditures relating to the transportation of regular and special education students to and from school, off campus field trips, and athletic and activity events. Revenue Revenue for the Transportation Fund is provided from local property taxes. The Transportation Fund is a fund limited by the Tax Cap. The District also receives a state reimbursement for regular, vocational, and special education transportation. The category titled Other Local Sources of revenue is interest income. The District s Transportation Aid is budgeted at $2.1 million, a decrease of 5% from last year s actual. The State is scheduled to reimburse for Special Education transportation at the rate of 100% of allowable expenses. Regular and Vocational Transportation reimbursements are scheduled to be reimbursed at 80% of allowable expenses. The State reimbursement is paid in the year following the expenditure. Expenditures The District presently owns forty nine (49) 71-passenger buses and ten (10) 27-passenger buses. The District is also leasing four (4) 27-passenger buses for Special Education Transportation purposes. This year the district moved a portion of special needs transportation back into district. With this move, the district purchased four (4) 21+1 lift buses. In addition, the high school operates and maintains three Multifunction School Activity Buses for sports and club transportation needs. These vehicles have greatly reduced the cost of transportation for small groups of students. The District also owns two vehicles utilized for the Drivers Education program. The District is currently on a two-year bus buyback program. The District purchases buses, maintains them for two years and sells them back to the manufacturer for a set price as specified in the bid, currently 86%. These buses will be returned through the buy-back program in June For the school year, the District reduced outsourcing for special needs transportation. Although there was an initial cost to purchase four new lift buses, providing our own transportation for special needs students will result in a cost savings of approximately $881,435 over a five-year period. In addition to the cost savings, the District is able to provide a consistent and less stressful transportation experience for our students with special needs. The District extended a two-year contract for an additional two years for limited Special Education Transportation services with Spare Wheels Bus Service for additional transportation as needed. The District employs 62 permanent bus drivers and 1 on-call substitute bus driver. The drivers are nonunion and have an agreement with the District through June The agreement calls for a 0% increase for the 3-year agreement but increases the field trip rate and adds six paid holidays. Fund Balance The fund balance is projected to increase slightly over the next several years and is adequate to fund transportation needs in the district. 129

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143 Municipal Retirement/Social Security Fund The Municipal Retirement/Social Security (IMRF) Fund is to account for the District s portion of pension contributions to the Illinois Municipal Retirement Fund, and employer matching funds for Social Security/Medicare. Revenue Revenue for the IMRF Fund is provided from local property taxes. Although there is no tax rate limit, the IMRF Fund is a part of the Tax Cap extension limitation and is therefore limited much the same as the other funds under the Tax Cap. The District is currently funding IMRF under rates set by IMRF. The 8-year rate averages 10.8% per year. Funds have been sufficient to cover IMRF, Medicare, and FICA costs. The District plans to levy to adequately fund IMRF and FICA/Medicare sub-funds on a yearly basis. The FICA and Medicare contribution rates have remained constant for many years at 6.2% and 1.45% respectively. Expenditures Annual expenditures in the IMRF/Social Security Fund are for payments to the Illinois Municipal Retirement Fund and for Social Security/Medicare payments to the IRS on behalf of non-certified and certified personnel. The IMRF rate imposed by the State continues to escalate and has become a complicating factor in maintaining a positive fund balance. The increase in expenditures for this fund relate to an increase in the IMRF rate. This increase is due to significant impairment of IMRF assets due to the economic downturn. IMRF has advised school districts to expect continued increases in the IMRF rate over the next several years until the fund is able to recover necessary reserves. Historical IMRF Rates Fund Balance Calendar Year Rate The District plans to maintain a fund balance adequate to fund increases in the IMRF rate. These funds are classified as restricted per the Governmental Accounting Standards Board (GASB) 54 Statement. 135

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149 Working Cash Fund The Working Cash Fund is to account for financial resources held by the District, which may be temporarily loaned to other funds. A Working Cash Bond Issue, June 2001, was passed by referendum to establish a reserve for cash flow purposes thus eliminating Tax Anticipation Warrants. The bond was issued for $11.6 million. This fund has been maintained at a minimum balance of $14 million. Revenue Revenue for the Working Cash Fund is provided from investment earnings. The Working Cash Fund is a fund limited by the Tax Cap, therefore the District has not chosen to levy for Working Cash. The legal maximum allowable rate is $.05 per $100 of EAV. Expenditures In previous years, transfers of Working Cash Interest have been made to the operating funds. Fund Balance Due to the heavy reliance on property taxes, the District receives its primary revenue in two installments, one installment in the spring and one in the fall. This creates a need for fund balances in order to meet the operating demands of the District between property tax payments. The Working Cash Fund is to account for financial resources held by the District, which may be temporarily loaned to other funds. 141

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155 Tort Fund The Tort Fund is for revenue and expenditures related to legal and insurance needs of the District. Beginning in FY2009 the Illinois State Board of Education (ISBE) required school districts to report their Tort Immunity tax levies and accumulated reserves in a separate fund rather than as a component of the Educational Fund. The Tort fund revenues and expenditures have been reallocated to the Education Fund. Tort expenditures which were for security staff, workers comp insurance, liability insurance, unemployment insurance, and legal bills are now classified as Education Fund expenditures Revenue Revenue for the Tort Immunity Fund is provided from local property taxes. Although there is no tax rate limit, the Tort Immunity Fund is a part of the Tax Cap extension limitation and is therefore limited much the same as the other funds under the Tax Cap. The Tort Fund revenues and expenditures have been reallocated to the Education fund based on auditor recommendations due to recent legal decisions. During fiscal year 2017, $0 are levied and budgeted in the Tort Fund revenue. Interest revenue is collected on the current fund balance. Expenditures Expenditures in the Tort Fund relate primarily to the cost of the District s property and liability insurance and for pending or potential litigation purposes. Beginning in FY 2011 Tort expenditures was shifted to the Educational Fund, and in FY 2012, all Tort expenditures are budgeted in the Educational Fund. Fund Balance The Tort Fund revenues and expenditures have been reallocated to the Education Fund based on auditor recommendations due to recent legal decisions. The remaining fund balance is being maintained for future use. 147

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161 Fire Prevention and Safety Fund The Fire Prevention and Safety Fund is required if a tax is levied or bonds are issued for purposes of fire prevention, safety, energy conservation, or school security. Every 10 years, each local board is required to survey its school buildings and make any recommendations in accordance with the Health Life Safety Code. This requires an Architect or Engineer licensed in the State of Illinois to survey and report on the safety of its school buildings. A timeline is then applied to each of the violations, requiring the district to take corrective action within the time frame required by law. Starting in 2015 through 2020, the district s 12 buildings are scheduled for 10-year Health/Life Safety Surveys. The district can levy up to $.10 per $100 assessed valuation for these repairs. In the Facility Capital Plan, HLS repairs are budgeted based on the 2015 surveys. This levy year effective with the property taxes, the district has levied $.05 or approximately $211,000. The district will continue to levy in Fire Prevention and Safety on an as needed basis. 153

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172 Fund Structure and Measurement Basis The accounts of the District are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund balances, revenues and expenditures as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid administration in demonstrating compliance with finance-related legal and contractual provisions. The District has the following fund types. Governmental Funds are used to account for the District s general governmental activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e., when they are both measurable and available. Measurable means that the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The District considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for un-matured principal and interest on general longterm debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Governmental funds include the following fund types. General Funds The General Funds are the general operating funds of the District. They are used to account for financial resources except those required to be accounted for in another fund. The General Funds consist of the following: Educational Fund This fund is used for most of the instructional and administrative aspects of the District s operations. The revenues consist primarily of local property taxes, state government aid, and Corporate Personal Property Replacement Tax (CPPRT). Operations and Maintenance Fund This fund is used for expenditures made for repair and maintenance of District property. Revenues consist primarily of local property taxes and District rentals. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than those accounted for in the Debt Service Fund, Capital Projects Funds or Fiduciary Funds) that are legally restricted to expenditures for specified purposes. Each of the District s Special Revenue Funds has been established as a separate fund in accordance with the fund structure required by the State of Illinois for local educational agencies. These funds account for local property taxes that are restricted to specific purposes. A brief description of the District s Special Revenue Funds follows: Transportation Fund This fund accounts for all revenue and expenditures made for student transportation. Revenue is derived primarily from local property taxes and state reimbursement grants. Illinois Municipal Retirement Fund (IMRF) This fund accounts for the District s portion of pension contributions to the Illinois Municipal Retirement Fund. Revenue to finance the contributions is derived from local property taxes and CPPRT taxes. Tort Fund The Tort Fund is used for to account for revenue and expenditures related to legal and insurance needs of the District. 164

173 Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources for and the payment of general long-term debt principal, interest and related costs. This fund accounts for the periodic principal and interest payments on the bond issues of the District. The primary revenue source is local property taxes levied specifically for debt service. Capital Projects Funds Capital Projects Funds are used to account for the financial resources to be used for the acquisition or construction of and/or additions to, major capital facilities. Currently the District s Capital Projects Funds are inactive. The District s Capital Projects Funds are: Capital Projects Fund This fund is used to account for The District s Facility Improvement Plan projects determined through the District Capital Plan. Fire Prevention and Safety Fund This fund is used to account for state approved Life Safety projects financed through serial bond issues or local property taxes. Fiduciary Fund Types (Trust and Agency Funds) Fiduciary Funds (Trust and Agency Funds) are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. Expendable Trust Fund (Working Cash Fund) The Working Cash Fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. The fund accounts for assets where both the principal and interest may be spent. A portion of the fund may be abated to other funds, or the entire fund may be permanently abolished to the General Fund in accordance with state statutes. Agency Funds The Agency Funds are custodial in nature and do not involve the measurement of results of operations. These funds are used to account for assets that the District holds for others in an agency capacity. The District s agency funds are made up of student activity accounts. 165

174 Fund Balances According to Government Accounting Standards, fund balances are to be classified into five major classifications; Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. A. Nonspendable Fund Balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The not in spendable form criterion includes items that are not expected to be converted to cash, for example inventories and prepaid amounts. B. Restricted Fund Balance The restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the entity. Things such as restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. The District has several revenue sources received within different funds that also fall into these categories 3. Special Education Revenues and the related expenditures of this restricted tax levy are accounted for in the Educational Account. Expenditures exceeded revenue for this purpose, resulting in no restricted fund balance. 4. Tort Immunity Account Expenditures and the related revenues are accounted for in the Tort Immunity Account. Revenues exceeded expenditures for this purpose, resulting in a restricted fund balance of $28, State and Federal Grants Proceeds from state and federal grants and the related expenditures have been included in the General Fund and various Special Revenue Funds. At June 30, 2016, expenditures exceeded revenue from state and federal grants, resulting in no restricted balances. 7. Social Security Expenditures and the related revenues of this restricted tax levy are accounted for in the Municipal Retirement/Social Security Fund. Revenues received exceeded expenditures for this purpose, resulting in a restricted fund balance $902,918. The remaining balance is restricted for Municipal Retirement purposes. 8. Capital Projects Funds Expenditures and the related revenues are accounted for in the Capital Projects and Fire Prevention and Safety Funds. All equity within these funds are restricted for the associated capital expenditures within these funds. 166

175 C. Committed Fund Balance The committed fund balance classification refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government s highest level of decision-making authority (the School Board). Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts. No committed balances existed as of June 30, D. Assigned Fund Balance The assigned fund balance classification refers to the amounts that are constrained by the government s intent to be used for a specific purpose, but are either restricted or committed. Intent should be expressed by (a) the governing body itself or (b) a body (a budget or finance committee, for example) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. No assigned balances existed as of June 30, E. Unassigned Fund Balance The unassigned fund balance classification is the residual classification for amounts in the General Operating Funds for amounts that have not been restricted, committed, or assigned to specific purposes within the General Funds. A negative unassigned fund balance may be reported in other governmental funds if expenditures incurred for specific purposes exceeded the amounts restricted, committed or signed to those purposes. F. Expenditures of Fund Balance Unless specifically identified, expenditures disbursed act to reduce restricted balances first, then committed balances, next assigned balances, and finally act to reduce unassigned balances. Expenditures disbursed for a specifically identified purpose will act to reduce the specific classification of fund balance that is identified. To maintain and protect the long-term financial capacity of the district, the Board of Education will not adopt a budget where expenditures exceed the combination of revenue and fund balance. Board Policy 6220 states, unrestricted reserves in the operating funds shall be maintained at a level equal to 30.0% of the operating budget. (The operating budget is composed of the education, operations & maintenance, transportation, retirement, tort immunity and the working cash fund.) As of June 30, 2016, the operating funds showed a balance of $43.3 million or 48.1% of the operating fund expenditures. Transfer of Funds Inter-fund loans and transfers within funds shall be made only through Board approval and in compliance with Illinois School Code. Any inter-fund loan must be repaid by June 30 th of the fiscal year 167

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177 169 CAPITAL PLAN

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179 Facility Capital Plan The District s Long Range Facilities Plan is updated annually and re-prioritized in order to best meet the needs of the district, staff, and students. The Facility Capital Plan is a seven-year plan that analyzes the existing facilities and their related conditions. It takes a look at the next seven years in which the highest priority needs will be addressed first. These priorities will be based on financial considerations such as cost and efficiencies, condition of existing facilities, code compliance, and the comfort and safety of our buildings. While it is difficult to imagine every possible scenario that our buildings face, the compiled comprehensive outlook of the present facilities is based on current conditions. This report covers all buildings and grounds the District owns and estimates the funding required to maintain our properties for an optimal teaching and learning environment. Projected costs by building are included. The Facility Capital Plan is intended to provide the information needed to assist the District Board of Education and Administration with the decisions they will face with regard to future financial support of our buildings. The Facility Capital Plan is presented to a Facility Task Force prior to Board approval. It is subject to change. The Facility Capital Plan is budgeted at $1,871,655 with actual cost at $1,921,622. Several projects were altered after approval. The over budget amount will be funded from the prior year s fund balance. 171

180 Geneva Community School District 304 Building and Property owned by the District 172

181 Geneva Community School District 304 Summary of 7 Year Capital Plan 173

182 Capital Plan by Building Year School Description of Work Projected Amount 1 GHS Steam Pipe Replacement $ 193,150 1 GHS Flooring Replacement $ 140,000 1 GHS VFD and Secondary Pumps (6) $ 50,250 1 GHS Turf Renewal Maintenance $ 50,000 1 GHS Boiler Replacement $ 100,000 1 GHS Mobile Classrooms $ 750,000 1 GMSN 10-year HLS Repairs $ 17,595 1 GMSS 10-year HLS Repairs $ 171,160 1 GMSS Crack fill and Sealcoat Fire Lane $ 5,000 1 WAS Chilled Hot Water Pumps (3) $ 25,000 1 WAS Replace 200-Ton Chiller $ 260,000 1 WAS VFD's for hot water pumps $ 25,000 1 WAS Gym Roof Replacement $ 50,000 1 MCS VFD and Secondary Pumps (6) $ 49,000 1 FES Floor Tile Replacement $ 50,000 1 CESC Generator Backup $ 125,000 1 Transp Generator Backupo $ 125,000 1 Transp Replace Carpeting $ 10,000 $ 2,196,155 2 GHS Flooring Replacement $ 210,000 2 GHS VFD and Secondary Pumps (6) $ 50,250 2 GHS Boiler Replacement $ 100,000 2 GHS Tennis Court Resurfacing $ 70,000 2 GHS Turf Maintenance $ 50,000 2 GHS Renovate Cafeteria Bathrooms $ 100,000 2 GHS Roof Replacement $ 450,000 2 GHS Replace Domestic Water Piping $ 50,000 2 GMSN 10-year HLS Repairs $ 132,400 2 GMSS Replace Hot Water Air-Unit $ 22,000 2 GMSS Fire Lane Replacement $ 35,000 2 GMSS Stage Lighting $ 25,000 2 GMSS 10-year HLS Repairs $ 222,700 2 HSS Replace Heaters $ 30,000 2 WAS Gym Roof Replacement $ 50,000 2 MCS Parking Lot Resurfacing $ 65,000 2 FES Parking Lot Resurfacing $ 45,000 2 CESC Rebuild Furnace Fan $ 15,000 2 CESC Tuckpointing $ 8,000 2 CESC Fan Coil and Condensing Unit $ 52,500 2 Transp Carpet Replacement $ 10,000 $ 1,792,

183 Capital Plan by Building cont d Year School Description of Work Projected Amount 3 GHS Flooring Replacement $ 250,000 3 GHS Boiler Replacement $ 100,000 3 GHS Update Lighting in Stage Area $ 200,000 3 GHS Turf Maintenance $ 50,000 3 GMSN IT Room Server A/C Replacement $ 20,000 3 GMSN DDC Controls $ 250,000 3 GMSS Resurface Gym Floor $ 25,000 3 GMSS DDC Controls $ 150,000 3 GMSS Ceiling Tile Replacement $ 165,000 3 HSS Radiant Heat Piping $ 30,000 3 WAS Gym Roof Replacement $ 50,000 3 WAS Interior Doors $ 10,000 3 WAS Parking Lot Resurfacing $ 35,000 3 MCS Parking Lot Resurfacing $ 30,000 3 HES Install new VFD's $ 9,000 3 HES Parking Lot Resurfacing $ 45,000 3 HES Floor Replacement $ 150,000 3 FES Parking Lot Sealcoating $ 45,000 3 CESC Parking Lot Sealcoating $ 125,000 3 CESC Hot Water Heater $ 3,500 3 CESC Fan Coil and Condensing Unit $ 70,000 3 CESC Fire Alarm System $ 70,000 3 Transp Flooring Replacement $ 10,000 3 Transp Parking Lot Resurfacing $ 150,000 $ 2,042,500 4 GHS Air Handlers (7) $ 175,000 4 GHS Boiler Replacement $ 100,000 4 GHS Turf Maintenance $ 50,000 4 GMSS Chiller $ 210,000 4 WAS Gym Roof Replacement $ 50,000 4 WAS Heater Replacement $ 27,000 4 MCS Install new office cooling system $ 37,000 4 HES Replace Air Handling Unit $ 13,000 4 HES Carpet Replacement $ 150,000 4 CESC Heater Replacement $ 70,000 4 CESC Water Piping Replacement $ 42,000 4 CESC Install new VFD $ 7,000 4 Transp Hot Water Heater $ 2,000 $ 933,

184 Capital Plan by Building cont d Year School Description of Work Projected Amount 5 GHS Renovate Stagecraft Area $ 125,000 5 GHS Turf Maintenance $ 50,000 5 GHS Parking Lot Resurface $ 75,000 5 GHS Storage Shed $ 55,000 5 GHS Boiler Replacement $ 100,000 5 GMSN Air Handlin Unit $ 38,000 5 GMSN Hot Water Heaters $ 80,000 5 HSS Parking Lot Resurface $ 45,000 5 HSS Boiler Pumps $ 20,000 5 HSS Air Handlers (3) $ 150,000 5 WAS Gym Roof Replacement $ 50,000 5 WAS Gym Air Handler Unit $ 18,000 5 MCS Replace Hot Water Heater $ 4,000 5 CESC Fan Coil and Condensing Unit $ 70,000 5 Transp Lighting Upgrades $ 8,500 $ 888,500 6 GHS Boiler Replacement $ 100,000 6 GHS DDC Controls $ 125,000 6 GHS Turf Maintenance $ 50,000 6 WAS Gym Roof Replacement $ 50,000 6 MCS DDC Controls $ 200,000 6 CESC Fan Coil and Condensing Unit $ 70,000 $ 595,000 7 GHS Boiler Replacement $ 100,000 7 GHS Turf Maintenance $ 50,000 7 GHS DDC Controls $ 125,000 7 GHS Replace Air Unit $ 45,000 7 GHS Replace Hot Water Heaters $ 150,000 7 GMSN Parking Lot Sealcoating $ 50,000 7 GMSS Parking Lot Sealcoating $ 50,000 7 GMSS Hot Water Tank Replacement $ 10,000 7 WAS Gym Roof Replacement $ 50,000 7 CESC Fan Coil and Condensing Unit $ 70,000 7 CESC Air Compressor $ 12,000 7 Transp Replace HVAC System $ 98,000 $ 810,000 Grand Total $ 9,258,

185 Completed Capital Improvement Plan Projects Projects Approved Project Budget Cost Variance GHS - Steam Pipe Replacement GHS - Mobile Classroom (1 unit & installation) GHS - VFDs & Secondary Pumps (3) GHS - Flooring Replacement (Offices, Classrooms) $193, $192, $ $650, $745, ($95,002.00) $50, $26, $24, $95, $43, $51, GMSN - 10 Year HLS "A" Repairs $17, $25, ($7,515.00) GMSS - 10 Year HLS "A" Repairs $46, $63, ($17,655.00) GMSS - Fire Lane (Crackfill/Seal, Coat) $5, $ $4, GMSS - Security - Replace Access Doors $30, $25, $4, WAS - Chilled/Hot Water Pumps (3) WAS Ton Chiller $285, $365, ($80,176.00) WAS - VFD for the held off due to $25, Chilled/Hot Water Pumps cost of chiller $25, MCS - VFD (6) $34, $20, $13, FES - Floor Tile CESC - Emergency Back-up Generator CESC - Landscaping & Fence as per the City of Geneva Bus Garage - Emergency Back-up Generator Bus Garage - Flooring Replacement $165, (Cost offset of $115,500 left from performance bond) $157, $7, $125, $151, ($26,700.00) $125, $89, $35, $10, $13, ($3,848.00) Sub-Total $1,856, $1,921, ($65,007.00) Project in Progress MCS - Hot Water Pumps (2) $15, SCHEDULED FOR SPRING 177

186 Technology Plan The District s Technology Plan is updated annually. The costs for this year s plan are funded from a Fabyan Scholarship donation, the Education fund, and the Operations and Maintenance Fund. Portable Devices Many of our students already have access to district-provided portable devices that are used for instruction, inquiry, and assessment. Over the next five years, we are hoping to transform learning in Geneva by equipping every student in Geneva schools with a portable device. Access to and familiarity with such technology is essential to preparing students for the real world. We recognize that such an effort is a large investment, so we want to ensure that such devices are used to their fullest potential. We will continue to provide robust professional development for educators so teachers are skilled in using these technologies to inspire critical thinking and harness creativity. The District has a Technology Plan that covers the implementation of devices for all students with a phase in process, the replacement of existing devices for students and staff, professional development for staff, and infrastructure to support technology in the buildings. This year s technology plan was broken down into three areas; Learning and Teaching, Equipment and Services, and Network Improvement. The cost for these three areas was budgeted at approximately $1 million. As we move forward into 21 st Century learning, costs shift from textbooks to technology. The projected costs to achieve the goal of devices for all students, is approximately $600,000 per year. All school districts are experiencing this paradigm shift. Digital Leadership As society becomes more and more reliant on technology, it is up to our school leaders to embrace the power of digital technologies to develop school cultures that are transparent, relevant, meaningful, engaging, and inspiring. That means that our leaders must overcome fears and misconceptions about technologies such as social media and learn how to appropriately employ digital tools to their full potential. It also means that they must relinquish the control to which they are accustomed and trust teachers and students to use these tools to explore, learn, and create. Being able to use digital tools such as social media to their fullest potential is an essential skill for the 21 st century world. Rather than tell students only what they cannot do with these tools, school leaders in Geneva 304 seek to create a culture that encourages students to use these tools in responsible and productive ways. Technology Plan for Learning and Teaching $795,000 1:1 devices for all students in grades 1,4,6,9, and 10 Classroom Projector Replacements Teacher/Staff devices, New/Upgrade Network/Infrastructure $194,000 Internet Service Enhancements Firewall/Filter New/Upgrade Network Improvements/Equipment Replacements Phone System Upgrades The District goals and objectives in future years will be funded primarily by local revenue. Additional costs are budgeted through a collaborative process with administration, staff and the Board of Education. 178

187 INFORMATIONAL SECTION BUDGET GENEVA COMMUNITY UNIT SCHOOL DISTRICT #304 GENEVA, ILLINOIS 179

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189 Property Taxes State law and the School Code of Illinois govern the policies and procedures of school finance. Property taxes are a major local revenue source, representing 87.1% of the District s total revenue. The property tax cycle extends over two years. The tax year is the year of assessment and reflects the value of property as of January 1 st. The tax bills are distributed and the taxes are paid in the year following the tax year. District 304 is a municipal corporation governed by a Board of Education, which has the exclusive responsibility and accountability for certifying an annual levy to the respective county clerk. School districts in Illinois levy for each Governmental Fund. The county clerk is responsible for the extension of taxes levied by the school district within the Property Tax Extension Limitation Law (PTELL), better known as the Tax Cap. The County Treasurer has the responsibility of mailing the tax bills, collecting the property taxes and remitting the revenues back to the taxing districts. Kane County distributes their tax receipt collections monthly beginning in May and ending in October with the largest installments in June and September. Illinois real property values and related taxes are established on a calendar-year basis. Geneva CUSD 304 is a municipal corporation governed by a Board of Education, which has the exclusive responsibility and accountability for certifying an annual levy to the County Clerk. School districts in Illinois levy for each Governmental Fund. The County Clerk is responsible for the extension of taxes levied by the school district within the Property Tax Extension Limitation Law (PTELL), better known as the Tax Cap. The County Treasurer has the responsibility of mailing the tax bills, collecting the property taxes, and remitting the revenues back to the taxing districts. Kane County distributes their tax receipt collections in six monthly payments beginning in May and ending on October. The Tax Cap limits the annual growth in the tax extension to the Consumer Price Index (CPI-U). Each levy also includes an increase in revenue generated by new property added to the tax base. The table below show the CPI used for the last eleven calendar years (used for the subsequent year s Tax Cap computation): Historical Consumer Price Index (CPI) The District s total taxable Equalized Assessed Valuation (which excludes incremental TIF values) by tax year is as follows: 181

190 * EAV 1,328,294,553 1,285,654,414 1,241,734,700 1,252,189,532 1,287,126,861 1,376,043,642 New Property 9,086,307 12,935,961 10,078,075 11,306,374 13,160,987 20,000,000 Tax Rate (per $100 EAV) Education Operations and Maintenance Debt Service Transportation Municipal Retirement Social Security Special Education Fire Prevention, Safety Total Tax Rate Tax Extensions Education 47,171,193 49,298,509 48,900,009 49,161,562 49,547,048 50,619,111 Operations and Maintenance 9,941,395 9,642,408 9,250,005 9,217,793 9,653,451 10,607,000 Debt Service 14,878,320 15,149,997 15,655,009 16,462,999 16,125,988 14,900,000 Transportation 1,891,053 1,985,976 3,960,004 2,355,644 2,358,016 1,810,000 Municipal Retirement 1,237,413 1,299,527 1,236, ,370 1,076,939 1,101,000 Social Security 1,037,823 1,089,926 1,030, ,370 1,076,939 1,101,000 Special Education ,435,294 3,438,817 3,517,000 Fire Prevention, Safety 211,000 Total Tax Extension 76,157,197 78,466,343 80,031,044 82,400,032 83,277,198 83,866,111 * Proposed Property Tax Levy not finalized 182

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192 Tax Caps Beginning in the 1991 levy year, the tax rates have been reduced by the Property Tax Extension Limitation Law (PTELL) or the Tax Cap. This cap limits the growth of a taxing body s previous year s tax extension to the lesser of the Consumer Price Index (CPI) or 5%. Revenue from newly assessed tax parcels are excluded from the cap. A fundamental structural imbalance exists in this funding formula because most of the costs related to the delivery of public education exceed CPI. The PTELL coupled with the lack of new Equalized Assessed Valuation (EAV) generated by new construction will eventually cause the need for the District to request a referendum property tax increase. Tax extension increases are governed by the increase in the EAV and the PTELL. The total tax extended by the County Clerk may increase by a limited amount each year. Within that aggregate increase, the District has authority to distribute the tax to the prescribed individual funds as long as the distribution stays below the fund rate ceiling that is prescribed by law. The method the District follows is to find the new aggregate limit by multiplying the previous year s tax extension by the new PTELL limit, then adjusting individual levies so as not to exceed its rate ceiling. In previous years, this has allowed the District to adjust down certain levies and give the Education Fund the highest priority. Property Tax Rate History Equalized Assessed Valuations (EAV) is designed to assure equal valuation treatment across Illinois. EAV represents the taxable property base for schools as certified by the Illinois Department of Revenue. Each Board of Education determines an annual levy in terms of dollar amounts and certifies this levy to the county clerk. The county clerk is responsible for making extensions of taxes levied within the constraints of the school district limitations. Tax rates for school districts are related to specific purposes. School districts in Illinois are subject to various limitations in property tax rates for each purpose (see table below). These rates can be increased through voter referendum, but not exceeding a maximum statutory tax rate. A tax rate in Illinois reflects the dollars levied per $100 of EAV of real property. Dividing the dollar amount of the tax levy by total EAV of the taxing district and multiplying the product by 100 calculates the tax rate. 184

193 PTELL Formula 185

194 2015 Maximum and Extended Tax Rates Maximum Extended Rate Rate Extension Education Fund ,161,562 Debt Service Fund ,462,999 Operations and Maintenance Fund ,217,793 IMRF Fund ,370 Transportation Fund ,355,644 Special Education ,435,294 Tort Judgements/Libilities Fund - - Social Secuity Fund ,370 Working Cash Fund Fire Prevention and Life Safety Fund Total Tax Capped Funds $ 65,937,033 Total Non Capped Funds $ 16,462,999 Total Cap and Non Cap Funds $ 82,400,032 The Tax Cap law was designed to reduce the rate of growth of property taxes for the individual taxpayer. The law allows the District to seek referendum approval to increase the total tax rate. This reliance on taxes makes the District vulnerable to political pressures to limit property taxes. Tax extension increases are governed by the increase in the (EAV) and the PTELL. The total tax extended by the County Clerk may increase by a limited amount each year. Within that aggregate increase, the District has authority to distribute the tax to the prescribed individual funds as long as the distribution stays below the fund rate ceiling that is prescribed by law. The Tax Cap, slows the growth of revenues to school districts and reduces the tax rates when property values and assessments increase faster than the rate of inflation. Property Taxes Assessed and Collected Property taxes are levied in December of the current year for the budget in the following fiscal year. 186

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196 Alternative Tax Collections Corporate Personal Property Tax Until 1979, Illinois Law allowed the taxation of the personal property of businesses. The revenue source was eliminated in 1979 and replaced with an alternative tax on Illinois businesses. The Corporate Personal Property Tax (CPPRT) imposes a state collected tax on the net income of the business (corporations, partnerships, and trusts) and an invested capital tax on utilities. The proceeds of this tax is distributed to local taxing bodies in preparation to the relative share of personal property taxes received by these local taxing bodies prior to The CPPRT is directly influenced by the State s economy. The District records the CPPRT revenue in the Education fund and a portion in the Municipal Retirement/Social Security/Medicare Fund as required. $1,200,000 Corporate Personal Property Replacement Tax $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Year CPPRT $945,348 $989,481 $910,940 $915,000 $924,150 $933,392 $942,

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198 Enrollment Methodology The District periodically contracts with a demographer to project demographic trends and enrollment projections. The last study was completed in November The basic methodology used to make the three series of enrollment projections is a modified cohort survival procedure. Average survival progressions were computed for each grade transition for the past four years. The average survival progressions were adjusted for inconsistencies in any given year and then applied to compute baseline enrollment projections for the District. The projected enrollments each year in grades 1 through 12 are adjusted for new residential development. The three series are then projected based on Series B-current housing trends, Series A-anticipated lower housing trends, and Series-C housing trends that exceed estimates. The District has been following the Series B through FY Since FY 2009, the economic outlook for development has declined thus putting the District between Series B and Series A projections. The District also projects enrollment based on current enrollment. This is completed using the cohort survival method and is projected for four years. The District total enrollment, based on the fall housing report, decreased in by 10 students and by 42 students. The total district enrollment for is 5,717, a decrease of 43 students. This is a decrease over the last three years of 85 students with enrollment projected to continue declining to through This decrease could affect staffing and programs in the future Enrollment projections based on enrollment history provides a better estimate of enrollment for the near future. These enrollment projections are NOT predictions. These figures are a best estimate based upon historical and current information. As the future differs from the past, the reliability of these projections will be directly affected. Changes in the economy, sociological patterns of behavior, and state and/or federal legislative educational reform initiatives, could significantly alter the assumptions that trigger these projections. The following graph illustrates the changes in District 304 enrollment levels over the past decade. Enrollment during this time initially experienced a gradual increase. We currently are in the seventh year of a period of gradual enrollment decline, which is projected to continue. 190

199 Enrollment Tables by District and By Building HISTORICAL ENROLLMENT (BASED ON ISBE FALL HOUSING REPORT DATA) Year K TOTAL , , , , , , , , , , , ,717 PROJECTED ENROLLMENT based on Kasarda Report November 2011 Year K TOTAL , , , , ,441 HISTORICAL ENROLLMENT BY BUILDING Year Geneva High School Geneva Middle School South Geneva Middle School North Coultrap Elementary Harrison Street Elementary Western Avenue Elementary Millcreek Elementary Heartland Elementary Williamsburg Elementary Fabyan Elementary Total These tables do not include Pre-School enrollment. 191

200 Personnel Geneva School District 304 is the third largest employer in Geneva with approximately 736 Teachers and Administrators, Educational Support Staff, Custodial, Grounds and Maintenance staff, and Bus Drivers. For the school year total staffing increased by 14.0 FTE. Additional teachers were added based on enrollment and program changes. A Science Instruction Facilitator was added to assist teachers with the new standards for science. To better serve our students who need social and emotional support, a 1.0 FTE Psychologist was added at the elementary level. The District also had 24 certified staff retire for a cost savings of $808,000. This offset the additional staff added for Increases in staffing since 2007 is due to the increase in enrollment. In 2009, an additional elementary school was built to accommodate the increased enrollment. 192

201 Contract Salary Increases and Length of Contract The Geneva Education Association (GEA) is the teachers union and the District has a three-year contract through The percentage change is 3.65% as negotiated by the Board of Education and the GEA The percentage change is 3.65% as negotiated by the Board of Education and the GEA The percentage change is 1% plus the ten year rolling CPI average as negotiated by the Board of Education and the GEA The increase for and is a step increase of 2.65% and an annualized increase of 1% on the base salary rate for The support personnel group is non-union and has an agreement as follows: The Education Support Personnel includes clerical and instructional assistant positions. The district has a two-year agreement with this group. An hourly rate schedule is adopted by the Board of Education. The and the percentage change is 3.5% each year The Geneva Support Staff Association (GSSA) is a union formed this year for Special Education Assistants, Kindergarten Assistants, and Library Assistants. The District is currently in negotiations with the The Custodians, Grounds, Maintenance, and Security Staff Working Conditions Agreement include all positions within the Operations and Maintenance department. The district has a threeyear agreement through The percentage change is 3.5% increase for all Operations personnel The percentage change is 3.5% increase for all Operations personnel The percentage change is 1% plus the 10 year rolling average of the Consumer Price Index (CPI) for all Operations personnel The Transportation Working Agreement includes all Transportation personnel including drivers. The district has a three-year agreement through Rather than an increase in rate of pay, the drivers opted for holiday pay. The District will provide two holidays per year for six paid holidays. Field Trip Rates were increased in the first year of the agreement. 193

202 Outstanding Bonds The District has issued debt approved by voter referendum, to construct several new schools to accommodate enrollment and projected enrollment growth. In the past 7 years, the District has added one additional middle school and two additional elementary schools as well as completely renovating two elementary schools. The debt for these projects is scheduled to be paid over the next fifteen years through Each year, the District reviews the outstanding debt issues to identify areas of refunding for a cost savings to the District. A refunding occurred in December 2016 that brought significant savings to the District. This is the sixth year for debt service abatement. To date, the amount transferred from the Education fund to the Debt Service fund for abatement is approximately $28 million. These funds are then abated against the debt service payment to keep the increase as level as possible. The refunding in December 2016 and December 2017 will level debt payments to approximately $15 million per year. Standard and Poor s assigned District 304 with a bond rating of AA+ Stable. The assignment of the AA+ rating with a positive outlook reflects the district s strong financial position with stable reserves and revenues, a large tax base within the Chicago metropolitan area, and manageable debt burden. Current and Long Term Debt General Obligation Bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds currently outstanding are as follows: Series 2001A General Obligation Building Bond issued June 1, 2001 are due in annual installments through 2021, with a face amount of $19.5 million. Series 2004 General Obligation Building Bond issued December 1, 2004 are due in annual installments through 2019, with a face amount of $41.2 million. Series 2007A Site and Construction and Refunding Bond issued July 1, 2007 are due in annual installments through 2027, with a face amount of $85.8 million. Series 2007B Refunding Bond issued July 1, 2007 are due in annual installments through 2021, with a face amount of $7.5 million. Series 2008A Site and Construction Bond issued January 1, 2008 are due in annual installments through 2027, with a face amount of $14.6 million. Series 2010 Refunding Bond issued March 3, 2010 are due in annual installments through 2024, with a face amount of $2.6 million. Series 2011 Refunding Bond issued November 39, 2011 are due in annual installments through 2019, with a face amount of $8.8 million. Series 2012 Refunding Bond issued January 31, 2012 are due in annual installments through 2018, with a face amount of $4.2 million. According to the Illinois School Code, school districts maintaining grades K through 8, or 9 through 12 shall become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate not exceeding 6.9% on the value of the taxable property. Unit (K-12) districts shall not 194

203 become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding 13.8% on the value of the taxable property. General Obligation Bonds Payable At June 30, 2016, the District s annual cash flow requirements for retirement of bond principal and interest were as follows: Fiscal Year Ending June 30 Principal Interest Total ,317,295 15,653,645 21,970, ,710,201 13,780,349 23,490, ,015,476 15,166,006 24,181, ,107,240 17,397,069 24,504, ,237,704 16,566,248 24,803, ,355,000 18,734,631 96,089, ,295, ,375 18,752,375 Total $136,037,916 $97,755,323 $233,793,239 On July 31, 2007, the District issued General Obligation Refunding School Bonds to partially advance refund a portion of the September 9, 1998 Building Bonds, the June 1, 2001 Working Cash Bonds and the December 1, 2004 Building Bonds. Proceeds of $45,958,302 were used to purchase state and local government securities. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded debt. As a result, these bonds are considered defeased and the liability has been removed from the general long-term debt. There was no economic gain recognized. On March 2, 2010, the District issued General Obligation Refunding School Bonds to partially advance refund a portion of the May 1, 2004 Building Bonds. Proceeds of $2,831,703, along with the $500,000 remitted by the District were used to purchase state and local government securities. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded debt. As a result, these bonds are considered defeased and the liability has been removed from the general long-term debt. There was no economic gain recognized. On November 29, 2011 and January 31, 2012, the District issued General Obligation Refunding School Bonds to partially advance refund a portion of the May 1, 2004 Building Bonds. Proceeds of $14,241,605 were used to purchase state and local government securities. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded debt. As a result, these bonds are considered defeased and the liability has been removed from the general long-term debt. There was no economic gain recognized. As of June 30, 2015, the outstanding debt considered defeased is $28,348,325. The District is subject to the Illinois Compiled Statutes, which limits the amount of bond indebtedness, including tax anticipation warrants and the installment contracts, to 13.8% of the most recent available equalized assessed valuation of the District. As of June 30, 2016, the statutory debt limit for the District was $177,623,507 providing a debt margin of $59,458,198 after taking into account $17,872,607 available in the Debt Service Fund. 195

204 Operations and Maintenance Loan The District has a bank loan related to the operations and maintenance of district buildings (Modular Classrooms). Annual principal and interest payments are required at 2.70% and are due annually on November 1 through fiscal year ended At June 30, 2016, the District s annual cash flow requirements for retirement of the operations and maintenance loan s principal and interest were as follows: Fiscal Year Ending June 30 Principal Interest Total ,648 7, , ,776 13, , ,198 10, , ,714 7, , ,664 3, ,057 Total $650,000 $41,925 $691,925 The District is always reviewing the outstanding debt and in February 2014, approved a Debt Reduction Plan. The plan will take into consideration abatement, refunding, and defeasance as well as setting aside additional funds to pay down bond balances and to flatten out the bond payments and levy rate so they remain more consistent every year. Over the past six years, the District has abated approximately $27.8 million. This year the district refunded callable bonds for a cost savings to the district. This refunding along with the abatements lowered the tax rate by $.71 from the original rate. Debt Service Rates T a x R a t e Levy Rate Reduced Rate after Abatement 196

205 Bonded Debt Amortization Schedules Debt Service Fund Impact Statement The schedules below illustrate future debt payments from the Debt Service Fund. State law provides for a separate tax to be levied for payment of bonds approved through a voter referendum as well as providing for limited non-referendum debt. 197

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207 Benchmark Data The cost to educate a student is difficult to correlate with the education of the student. There are many costs that fluctuate with time and cannot be directly related to student achievement. The District does have a higher achievement rate for its students compared to the State, with the State incurring a higher instructional cost per student than the District. Instructional Cost per Student 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, District 6,972 6,899 6,807 6,649 6,393 State 7,712 7,419 7,094 6,974 6,824 District to State Data shows the District performing higher than the State with about the same number of staff to pupil ratio but with a higher-class size as seen in the charts that follow. Average Class Size Average class size is comparable to the State class size with approximately a 1-student difference. The District is committed to keeping class size lower in the primary grades. In many cases, a Teacher Aide is added when the class size begins to increase over 23. District to State Data shows the District performing higher than the State with about the same number of staff to pupil ratio but with a higher-class size. 199

208 Average Class Size 22 Disrict State Graduation Rate District State Ready for College PARCC % 77 District State District State District State Met Exceeded Did not Meet 24.2 ACT Scores 20.8 Pupil to Teacher Ratio 17 District State District State Elementary Secondary 200

209 Performance Results A key factor in continuous improvement is to draw upon past successes and strengths in an effort to meet the continually changing demands of our modern world. As a high-achieving school district, we work to continually recognize and build on these strengths, which we refer to as our Tradition of Excellence. At the foundation of these strengths is a supportive and involved community. The people living in Geneva recognize the historic yet thriving nature of our community and are dedicated to excellence in education and support of our students. This community support is also evident in the many partnerships with local governmental bodies and other entities. Geneva Community Unit School District 304 was ranked 12 th best school district in Illinois by Niche.com, placing Geneva in the top 3% of school districts in the country. Geneva High School placed among the top 8% of public high schools (1,645 out of 19,908) in the nation, according to U.S. News & World Report s 2016 edition of Best High Schools. The School Report Card, published annually by the State of Illinois, provides comparative data that can be used as indices of academic effectiveness. The School Report Card provides important information pertaining to school and District achievement compared to State levels. The School Report Card documents Geneva Community Unit District 304 s excellence in key areas of performance and accountability. The current Report Card shows that the District s graduation rates and ACT (American College Testing) scores continue to exceed state averages. District State ACT Composite Graduation Rate 85.6% 85.5% Source: 2016 Illinois School District Report Card College preparedness benchmark scores for Geneva High School students average 30% higher than State scores. The following graph shows the ACT results for Geneva High School as well as the Illinois average. 201

210 Composite ACT Scores CUSD 304 State of Illinois Geneva Community Unit School District 304 provides programming to meet the varying needs of students, including regular, intervention, accelerated/enrichment, honors, and AP programs for its students. All Geneva High School Students are enrolled in a seven-period academic day and must earn 20.5 credits in order to be eligible for graduation. Students may select from over 210 courses in the program of study, which includes course offered on-site at Geneva High School as well as courses made available through the Fox Valley Career Center. In addition, GHS students have the opportunity to register for dual, articulated, and virtual for-credit courses. Students have the opportunity to enhance their academic experience and Grade Point Average through Honors, AP, and other weighted capstonetype courses. 202

211 PARCC The district administered Partnership for Assessment of Readiness for College and Career Readiness (PARCC) in the school year. This exam is tied to Illinois new, more rigorous academic standards for the areas of English Language Arts and Math. It is important to note that the PARCC exam is a new test that assesses new standards in a new way. While we know that no one assessment score can ever capture the fullness of a child s potential or breadth of abilities, we recognize that these results provide an important piece of information for us to consider as we strive to provide the very best education to our students. Below you can see Geneva 304 s overall results from the administration of the PARCC exam. 203

212 MAP The Measures of Academic Progress (or MAP) tests are intended to help determine each student s instructional level and measure academic growth over time in the areas of reading and math. MAP tests are unique in that they are adaptive tests that students take on a computer. In an adaptive test, each question to which a student responds is based upon her/his response to previous questions. This adaptive model not only ensures that students take assessments customized to their personal learning levels, but also provides more individualized information about each child s learning to her or his teacher. Below is the Dynamic Maps Assessment results. 204

213 Other Information Low-income students come from families receiving public aid; live in institutions for neglected or delinquent children; are supported in foster homes with public funds; or are eligible to receive free or reduced-price lunches. In FY 2016, the District approved 313 low-income applications serving free lunch to all. This is 5.4% of the total student population. This amount has been reduced to 282 for FY 2017 or 4.9%. Limited-English-proficient students are those students eligible for transitional bilingual programs. IEP students are those students eligible to receive special education services. Chronic truants are students who are absent from school without valid cause for 18 or more of the last 180 school days. Mobility rate is based on the number of times students enrolling or leave a school during the school year. Parental contact, which is ranked at 99.6% for the District versus the State at 95.3%, includes parentteacher conferences, parental visits to the school, school visits to home, telephone conversations, and written correspondence. Teacher Retention Rate remains steady at 92% compared to the State at 86%. 205

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