Fiscal Year School Year. Township High School District 113. Deerfield and Highland Park High Schools

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1 Fiscal Year School Year Township High School District 113 Deerfield and Highland Park High Schools

2 Executive Summary FY18 budget drafted using a 0.7% (CPI) increase. The budget is balanced Next year good news CPI is 2.1% for FY19 The referendum payment in FY19 estimate of $1.5 Million to make fund balance whole Developing a balanced budget is easy. Ending the year in good financial standing takes teamwork. 2

3 Fund Balance & Tax Revenue Estimated Operating Fund Balance for the start of FY18 is 45%. Local taxes are projected to increased 1.2% in FY18. New EAV increased 0.5% in FY18. Total estimated new revenue in FY18 is $1,012,993 3

4 Goals for FY18 Meet and confer to reach an agreement with the Transportation, CSMG & Teacher Aide groups. Continue to identify expenditure savings for FY18 and plan for FY19. Analyze positions with Human Resources. Develop a long range capital projects plan utilizing the Perkins+Will facility assessment. 4

5 Continued Goals FY18 Work with PMA to ensure realistic financial projections utilizing a 5-year time frame. Monitor the impact of tax appeals. Stay informed of possible state pension shift, property tax freeze and other funding changes. Update board quarterly on budget variances. Software conversion for Finance & Human Resources. Goal per the agreement is to either use the Healthcare Fund Balance and/or modify the plan to keep the cost of health care flat. 5

6 Past Financial Accomplishments Rated Aaa by Moody s and AAA by Standard & Poor s. Moody s rating was reaffirmed for the Bond sale on April 15, All staff salaries tied to a CPI range. Projected to finish on budget in FY 17. Investments for FY17 will earn more than budgeted. 6

7 Anticipated Enrollment of Students Current overall district student enrollment is estimated to decrease by 16 students in FY18. We use the October enrollment numbers to verify annual projections. Over a 5-year period, total student enrollment is projected to decrease by 462. The next slide shows the enrollment projections used by the district. Enrollment and class registrations typically drive teacher FTE. 7

8 Enrollment Projections Annual Rolling DHS HPHS Total Delta Change FY FY FY FY FY FY FY

9 Budget Variables to Monitor for FY18 Revenues State, Federal and Grant funding allocations. Tied to FY16 State GSA (General State Aide) funding formula. PTAB (Property Tax Appeal Board) cases and uncollected local taxes. State supported Special Education claims. Potential property tax freeze legislature. Expenditures Unanticipated expenses throughout year (Breaks and Repairs). Insurance declarations by staff from Single to Family and new FTE. Energy costs and colder winters/warmer summers. State and Federal mandates which are not reimbursed. Potential TRS Pension cost shift to districts (1% = $ 450,000). 9

10 Revenue and Expenditure Summary TOWNSHIP HIGH SCHOOL DISTRICT NO Estimation REVENUE AND EXPENDITURE SUMMARY-ALL FUNDS I Actual Audit Fund Balance Balance FY 16 Projected Total Total Total Estimated Delta From Balance Revenue Notes Amount Expenditures Balance Previous FUND 7/1/2017 FY 2018 Available Budgeted 6/30/2018 Fiscal Year $51,206,855 Education $39,292,247 $75,501,046 $114,793,293 $76,649,560 $38,143,733 ($1,148,514) PTAB $0 ($300,000) $0 $0 $0 ($401,578) Operations $1,500,000 $13,982,927 $15,482,927 $13,401,617 $2,081,310 $581,310 $0 Bond & Interest $0 $7,224,877 $7,224,877 $7,060,391 $164,486 $164,486 $1,938,702 Transportation $1,938,702 $3,346,769 $5,285,471 $3,099,078 $2,186,393 $247,691 $457,525 IMRF/Soc Sec $457,525 $2,803,781 $3,261,306 $2,590,005 $671,301 $213,776 $3,735,128 Working Cash $3,735,128 $60,375 $3,795,503 $0 $3,795,503 $60,375 ($13,030) Tort $0 $50,376 $50,376 $170,000 ($119,624) ($119,624) $0 Fire Protection $0 $50,500 $50,500 $50,000 $500 $500 Captial Projects/Refere $19,772,160 ndum $6,000,000 $11,023 $6,011,023 $950,000 $5,061,023 ($938,977) Transfer $0 $76,695,762 TOTAL $52,923,602 $103,031,674 $0 $155,955,276 $103,970,651 $51,984,625 ($938,977) Matched FY 18 Revenues $103,970,651 Matches FY18 Expenditures $950,000 From Life Safety projects Note: This draft does change prior to submitting the state budget 10

11 CPI Drives total Revenues 11

12 FY 2018 Revenue Summary Projected Revenue Description Budget FY 17 FY 18 Increase % Increase Education Fund ($73,816,560.39) ($75,501,045.66) ($1,684,485.27) 2.28% Federal Revenue ($2,331,999.60) ($2,119,003.98) $212, % Local Revenue ($70,264,957.48) ($71,760,938.19) ($1,495,980.71) 2.13% Other Revenue ($50,101.35) ($30,101.34) $20, % State Revenue ($1,169,501.96) ($1,591,002.15) ($421,500.19) 36.04% Operations/Bldg Maintenance Fun ($13,045,736.77) ($13,982,927.09) ($937,190.32) 7.18% Local Revenue ($13,011,736.49) ($13,700,926.73) ($689,190.24) 5.30% Other Revenue ($4,000.17) ($4,000.18) ($0.01) 0.00% State Revenue ($30,000.11) ($278,000.18) ($248,000.07) % Bond / Interest Fund ($7,753,526.64) ($7,224,877.36) $528, % Local Revenue ($6,958,526.53) ($6,674,877.18) $283, % Other Revenue $0.00 $0.00 #VALUE! State Revenue ($795,000.11) ($550,000.18) $244, % Transportation Fund ($3,149,079.53) ($3,346,769.40) ($197,689.87) 6.28% Local Revenue ($2,119,079.17) ($2,152,769.04) ($33,689.87) 1.59% Other Revenue $0.00 $0.00 #VALUE! State Revenue ($1,030,000.36) ($1,194,000.36) ($164,000.00) 15.92% IMRF/Social Security Fund ($2,753,274.96) ($2,803,781.36) ($50,506.40) 1.83% Local Revenue ($2,753,274.96) ($2,803,781.36) ($50,506.40) 1.83% Capital Projects Fund ($5,626,000.53) ($1,001.18) $5,624, % Local Revenue ($125,000.18) ($1.00) $124, % Other Revenue ($5,500,000.17) $0.00 $5,500, % State Revenue ($1,000.18) ($1,000.18) $ % Sanders Site / Const 2007 ($10,000.16) ($10,001.16) ($1.00) 0.01% Local Revenue ($10,000.18) ($10,001.18) ($1.00) 0.01% Other Revenue $0.02 $0.02 $ % Working Cash Fund ($49,513.41) ($60,375.36) ($10,861.95) 21.94% Local Revenue ($49,513.41) ($60,375.36) ($10,861.95) 21.94% Tort Immunity Fund ($49,513.25) ($50,376.00) ($862.75) 1.74% Local Revenue ($49,513.25) ($50,376.00) ($862.75) 1.74% Fire & Prevention Fund ($50,013.43) ($50,500.36) ($486.93) 0.97% Local Revenue ($50,013.43) ($50,500.36) ($486.93) 0.97% Total ($106,303,219.07) ($103,031,654.93) Note: This draft does change prior to submitting the state budget 12

13 Revenue FY17 vs FY18 13

14 Revenue Estimate Overview Total operating revenues for FY18 increased by 1.02%. State and Federal revenues are budgeted to be flat. Our major concern is the lack of a state budget and the potential lack of a state budget for several more years. We are assuming 100% General State Aid and four (4) categorical payments. 14

15 Projected Expenditures FY 2018 Expenditure Summary Fund Budget FY 17 FY 18 Increase % Increase Education Fund $74,299, $76,649, $2,350, % Capital Outlay $115, $534, $418, % Employee Benefits $7,569, $8,158, $588, % Other Objects $918, $451, ($467,146.84) % Purchased Services $4,295, $4,483, $187, % Salaries $49,959, $51,271, $1,311, % Supplies/Materials $3,914, $4,002, $87, % Tuition $7,526, $7,748, $222, % Operations/Bldg Maintenance Fun $13,182, $13,401, $219, % Capital Outlay $386, $6,322, $5,935, % Employee Benefits $915, $1,038, $123, % Other $5,500, $0.00 ($5,500,000.17) % Other Objects $280, $121, ($159,001.33) % Purchased Services $967, $1,052, $85, % Salaries $4,718, $4,322, ($395,488.90) -8.38% Supplies/Materials $415, $545, $129, % Bond / Interest Fund $7,752, $7,060, ($692,274.88) -8.93% Bond $7,752, $7,060, ($692,274.88) -8.93% Transportation Fund $3,130, $3,099, ($31,672.63) -1.01% Capital Outlay $225, $75, ($150,000.00) % Employee Benefits $382, $415, $32, % Other Objects $10, $10, $ % Purchased Services $790, $840, $49, % Salaries $1,373, $1,409, $35, % Supplies/Materials $349, $349, ($0.03) 0.00% IMRF/Social Security Fund $2,562, $2,590, $27, % Employee Benefits $2,562, $2,590, $27, % Capital Projects Fund $38,950, $5.00 ($38,949,995.85) % Construction $38,950, $5.00 ($38,949,995.85) % Sanders Site / Const 2007 $3,500, $950, ($2,550,000.00) % Construction $3,500, $950, ($2,550,000.00) % Working Cash Fund $0.16 $0.16 $ % Other Objects $0.16 $0.16 $ % Tort Immunity Fund $140, $170, $29, % Tort Immunity Fund $140, $170, $29, % Fire & Prevention Fund $100, $50, ($50,000.29) % Capital Outlay $50, $25, ($25,000.18) % Purchased Services $50, $25, ($25,000.11) % Total $143,617, $103,970,

16 Expenditure FY17 vs FY18 Note: This draft does change prior to submitting the state budget 16

17 Spending from other Funds/Buckets (10) (20) (30) (40) (50) (60) (70) (80) (90) Educational Operations & Maintenance Debt Service Transportation Municipal Retirement/ Social Security Capital Projects Working Cash Tort Fire Prevention & Safety WC to Ed is Abolish or Abate WC to all other funds with Abate Illinois State Laws restrict which funds can be spent for certain items along with how and when they can be transferred. It is all about spending from the CORRECT BUCKET Transfers both ways Transfers follow the arrows 17

18 Expenditure Estimate Overview Total expenditure increase for FY18 is estimated at 1.8%. Estimated Expenditure change for each fund: Education total expenditures increased by 3.16 %. Operations/Building/Grounds/Maintenance increased by 1.66%. Bond and Interest decreased by 8.93%. Transportation decreased by 1.01%. IMRF/Social Security pensions increased by 1.01%. Fund balance of $1M applied to capital projects for FY18 to support referendum plan. FY19 is projected to budget $1.5 Million. The FY17 budget used $.5 M from fund balance. The FY18 budget will use $1 M from fund balance. The FY19 budget will transfer $1.5 M from operations to fund balance. $5-$7 Million is a customary amount to allocate for Capital Projects. 18

19 Capital and Preventative Maintenance Long Range Facility Plan. Large capital projects Needs a review task force of the Perkins and Will facility needs assessment. Phases after the Referendum to be determined. Determine a funding plan. Preventative Maintenance. Normal and customary. Belts, filters, painting, cleaning and repairs. Life spans of devices/hvac/lighting. Replacing items that get worn due to use. Items that may break. HVAC units that freeze. (much less after referendum work) Items broken due to use or accidents. 19

20 Bond and Interest Fund FY18 Bond and Interest Payment is $7.1 M. Bond payments are calculated and collected by the county per law. Goal is Tax rate/cost should reduce annually. New/Added/Increased EAV lowers rate. Keep costs constant. Let NEW EAV drive rate down for all taxpayers. 20

21 Debt Chart Bond and Interest Estimated Rates trend lower FY FY FY FY FY FY

22 Referendum and Capital Projects Update The project finished on time and on budget. Budget of $114 M has $113M paid to date. Summer of 2017 estimates $1M of construction. HPHS Tennis Courts DHS pool There is an estimate of $950K in Life Safety work for the summer of

23 Referendum Funding Source of Annual Budget for $ 25 M Total Contributions Starting in FY 14 we allocated $ 4 M in the balanced budget which was an increase of $500 K annually to reach $ 5 M on average over 5 years. FY14=$4M, FY15=$4.5M, FY16=$5M, FY17=$5.5M($ 500K from fund balance) For FY17=$6M which will be a transfer to Capital expenditures This was recommended by our Auditor and Legal team. This strengthens our financial records This avoids any foot notes needs for a negative balance in Capital accounts Projected for FY19 $1.5 M from Operating budget to fund balance Fund balance will be made whole in FY 2019 with this plan with a transfer if necessary, of $ 1.5 M from operations to operations fund balance We will monitor fund balance, reoccurring costs, projected capital accounts and other details The additional $ 1M is NOT coming from the educational programs (Teachers/Class size/course offerings) 23

24 Future Capital Funding Plan It is NORMAL and Customary for a district of our size, age and budget to allocate $5-$7 Million annually to Capital Projects and preventive maintenance. The district will be keeping track in projections of future projected capital accounts/expenditures. With the goal of a full analysis of the Perkins-Will Capital assessment plan the funding also needs to be a key component. 24

25 Tax Cap Applications Revenues from the local real estate taxes are capped at CPI or 5%, whichever is LESS. CPI for FY18 is 0.7%. CPI for FY19 is 2.1% (If no tax cap law passed) CPI for FY20 is estimated to be 2.3%. 96% of our revenue is from local real estate taxes. Need to plan now for FY19. PTAB (Property Tax Appeal Board) and foreclosures reduce taxes collected. 25

26 Additional Comments District 113 continues to win awards for financial planning and stewardship. District 113 plans for the future while addressing the current needs of students and the community. District 113 continues the mission of reducing expenditures while keeping quality programs. The current financial projection shows the end of this fiscal year of FY17 to finish on budget There will be some accrual accounting with the auditor that will not be known until the audit is done. 26

27 Comparable to 10 other Lake County High School Districts Number of schools District 113 Ranking of District Dist. No. Lake Co. 6th Day Enroll.* Fall Student Enroll.** Average Daily Attend. *** 2015 Equalized Assessed Valuations 2015 EAV per Pupil (ADA) 2015 Educatio n Fund Tax Rate 2015 Total Tax Rate Total Net Operating Expend's Operatin g Expend's per Pupil (ADA) Per Capita Tuition Charge+ Long-term Debt as of 6/30/16++ Shortterm Debt as of 6/30/ Grayslake Comm.**** ,278, , ,524,609 17, , ,289, Zion-Benton Twp.*** ,143, , ,437,355 14, , ,687, Community H.S ,056,680, , ,884,775 16, , ,375, Grant Community ,109, , ,677,587 13, , ,505, Adlai E. Stevenson ,218,571, , ,031,311 18, , ,569, Mundelein***** ,199,872, , ,534,697 15, , ,995, Community H.S.***** ,779,670, , ,441,749 22, , ,135, Warren Township*** ,919,298, , ,213,692 14, , ,552, Township H.S.***** ,988,727,499 1,258, ,466,226 24, , ,840, Lake Forest***** ,832,696,494 1,855, ,232,901 24, , ,245,

28 Larger EAV lowers Tax Rates 28

29 EAV still not rebounded from

30 Conclusion Please any budget questions to Barry. Barry and Ali will respond to all questions via the Thursday packets. Questions should be received prior to Friday, June 30, The posting of the tentative FY18 budget will be an action item at the Board of Education meeting on July 10, The budget hearing and the Board action to adopt the budget will occur at the Board of Education meeting on August 14,

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