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Financial Projections

January 18, 2024

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Agenda

Presentation Number 1: The Citizen Finance Advisory Committee will be presenting the District’s financial projections.

Presentation Number 2: Bob Lewis from PMA Securities Inc. will be presenting on Bonds for the District

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SUMMARY OF PRESENTATION

This presentation will show:

information regarding the process used to create financial projections
a mid-year budget update for the 2023-2024 school year showing we are on track compared to previous years
financial projections that show fund balances for the district projected to be maintained within the board policy of 30-50% for the next five years

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STRATEGIC PLAN

Fiscal Stewardship and Facility Planning - District 57 prioritizes fiscal stewardship and facility planning to ensure that resources are utilized efficiently and effectively. By investing in these areas, the district can continue to provide a safe and nurturing learning environment for its students.

Strategic Plan Objective E: Maintain Fiscal Responsibility

Investigate opportunities to collaborate with local municipalities for cost-sharing opportunities
Maintain balanced district budgets each year
Utilize financial projections each year to proactively plan for financial needs of the district.

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Financial Projection Process

The Citizen Finance Advisory Committee (CFAC) was formed in the spring of 2022. Parents, teachers, students and community members were invited to fill out a form to express interest. The committee includes:

One former student
One teacher
Twelve parents/community members
One Board Member
Superintendent and Assistant Superintendent

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CFAC Timeline

October 26: CFAC reviewed last year’s presentation and began to plan for this year’s presentation
November 30: CFAC hears presentation from PMA regarding school bonds
December 14: CFAC finalized the presentation to Board including information on bonds and financial projections
January 18: Presentation at the Board Meeting

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Definitions

Consumer Price Index (CPI): The Consumer Price Index measures the overall change in consumer prices based on a representative basket of goods and services over time. Revenue in a school district is dependent on CPI to a max of 5%.
Equalized Assessed Valuation (EAV): The value of real property within the district’s boundaries after county and state equalization are performed
Expenditure: Money spent
Fiscal Year (FY): A one-year period of time that a company or government uses for accounting purposes and preparation of its financial statements. The district’s fiscal year is July 1 to June 30
Fund: The school district’s accounting records, budgets and financial reports are organized and reported on a fund basis.
Fund Balance: The amount of money a district has at a specific moment in time.
Revenue: Money received

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MID-YEAR 2023-2024 budget Update

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Revenue Budget 2023-2024

SOURCE DESCRIPTION	BUDGET
Local Source	$32,589,837
State Source	$2,088,500
Federal Source	$803,007

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Interest earnings continue to be higher than expected

Instructional fees are collected prior to the school year while food service, activity and Kids’ Corner fees are collected throughout the year

Revenue Report Year to Date:

DESCRIPTION	OFFICIAL FY24 BUDGET (ESTIMATED REVENUE)	YEAR TO DATE (ACTUAL REVENUE)	BALANCE AS OF NOVEMBER 30,2023	PERCENT OF BALANCE REMAINING 23-24	PERCENT OF BALANCE REMAINING 11/30/22
Property Taxes	$29,955,437	$4,929,128	$25,026,309	83.50%	75.90%
CPPR Taxes	$912,000	$498,854	$413,146	45.30%	-1.70%
Kids' Corner & Circle of Friends	$715,000	$334,284	$380,716	53.20%	44.00%
Transportation Fees	$300,100	$318,737	-$18,637	-6.20%	-3.30%
Instruction Fees	$236,000	$230,340	$5,660	2.40%	4.20%
Interest Earnings	$169,600	$235,327	-$65,727	-38.8%	-69.00%
Activity Fees	$100,600	$85,151	$15,449	15.40%	32.60%
Other Local Revenues	$201,100	$109,099	$92,001	45.75%	-90.01%
Sub-Total Local	$32,589,837	$6,740,920	$25,848,917	79.30%	93.70%
Evidence Based Funding Formula (GSA)	$2,000,000	$783,527	$1,216,473	60.80%	51.90%
Other State Revenues	$88,500	$74,682	$13,818	15.61%	-33.91%
Sub-Total State	$2,088,500	$858,209	$1,230,291	58.90%	48.80%
Special Education	$586,193	$494,027	$92,166	15.70%	47.00%
Other Federal Revenues	$216,814	$172,985	$43,829	20.22%	13.93%
Sub-Total Federal	$803,007	$667,011	$135,996	16.90%	34.30%
Total	$35,481,344	$8,266,140	$27,215,204	76.70%	68.70%

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Expenditure Budget

DESCRIPTION	OFFICIAL FY 24 BUDGET
Salaries	$ 19,939,844
Employee Benefits	$ 5,782,640
Purchased Services	$ 3,323,663
Capital Outlay	$ 2,035,000
Other Objects	$ 1,626,050
Supplies & Materials	$ 1,339,900
Non-Capitalized Equipment	$ 775,100
Termination Benefits	$ -

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On track compared to the previous five years
During the pandemic years, financials were not significantly impacted

Expenditures by Object

OBJECT	DESCRIPTION	OFFICIAL FY24 BUDGET (ESTIMATED EXPENDITURES)	YEAR TO DATE (ACTUAL EXPENDITURES)	BALANCE AS OF NOVEMBER 30, 2023	% OF BALANCE REMAINING NOVEMBER 30, 2023	% OF BALANCE REMAINING 5-YEAR AVERAGE
100	Salaries	$19,939,844.00	$5,843,058.71	$14,096,785.29	70.70%	68.95%
200	Employee Benefits	$5,782,640.00	$1,742,868.53	$4,039,771.47	69.86%	65.82%
300	Purchased Services	$3,323,663.00	$1,424,233.80	$1,899,429.20	57.15%	58.76%
500	Capital Outlay	$1,339,900.00	$493,040.69	$846,859.31	63.20%	43.07%
600	Other Objects	$2,035,000.00	$586,983.63	$1,448,016.37	71.16%	62.70%
400	Supplies & Materials	$1,626,050.00	$993,168.55	$632,881.45	38.92%	57.73%
700	Non-Capitalized Equipment	$775,100.00	$475,103.14	$299,996.86	38.70%	44.35%
	TOTALS	$34,822,197	$11,558,457	$23,263,740	66.81%	64.32%

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Financial Projections

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Purpose of Financial Projections

Financial projections help the district plan for the future. It allows the district to look forward at one moment in time with the understanding that finances will change throughout the year based on both internal (e.g. facility needs not planned for) and external (e.g. a change in interest rates) factors.

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Fund Balance - Board Policy 4:20

The School District seeks to maintain a year-end operating fund balance no less than 30% and no greater than 50% with a target of 40% of the annual operating expenditures. The operating fund shall consist of the educational, operations & maintenance, transportation, municipal retirement/social security, working cash, and tort funds.

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Assumptions Include…

REVENUE

$5M annual in new growth to EAV
4% of CPI for 2024 Levy and 2% remaining years
No change to federal and state support
99.5 % expectation of tax levy collection rate

EXPENDITURE

$2M Annual facility maintenance per year
Estimated staffing

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Key takeaways from previous slide

Fund balance continues to increase in first two years due to high CPI. (2022 and 2023 at 5% and 2024 estimated at 4%)
With the expected decline of CPI over the following three years, fund balance percentages decline as well. (remaining years estimated at 2% based on previous ten year average)
Fund balance is expected to stay within board policy limits with current assumptions.

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Thank you to our CFAC committee:

Vicki Chung
John Ciok
Ryan Collins
Andy Costello
Alan Deitch
Mary Gorr
Edward Henriquez
Laura Hollis

Velida Kadiric
Brian Kasper
Scott Martin
Sara McDonagh
Kelly Morales
Jason Mulligan
Bruce Pulitini
Fred Schafer
Robert Taylor

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Next Steps

As the Board of Education has further conversations, the committee will be available to offer guidance on

Bond opportunities at the end of 2024
Financial impact on the facility needs, including implementing full day kindergarten, which will have an impact on the financial projections

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Questions

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Appendix

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HISTORICAL CPI

HISTORICAL NEW GROWTH to EAV

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CPI
2011	1.5%
2012	3.0%
2013	1.7%
2014	1.5%
2015	0.8%
2016	0.7%
2017	2.1%
2018	2.1%
2019	1.9%
2020	2.3%
2021	1.4%
2022	5.0%
2023	5.0%

New Growth
2011	$1,072,633
2012	$1,081,593
2013	$1,976,175
2014	$120,774
2015	$719,035
2016	$33,280,707
2017	$2,895,580
2018	$934,126
2019	$11,889,855
2020	$3,978,875
2021	$1,220,072
2022	$6,115,827