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LaGrange School District 105

Fiscal Year 2019 – 2020

Tentative Budget

July 22, 2019

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Budget Plan

A school budget is a plan of District 105’s financial operations which express the estimate of proposed expenditures for a fiscal year ( FY20) and proposed means of financing them.

The purpose of a budget is to: provide a forecast of revenue and expenditures and measure the actual financial operation against the forecast (audit)

We will update the STRAT Plan again when we approve the final budget.

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Overview - Revenues

State and Federal grant funding have been included in FY20 District revenue at FY19 levels

2018 levy will include a Cost of Living (CPI) increase of 1.9%. This will result in a minor increase in overall revenues.

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Revenue by Source

Local Property Taxes 80.6%

CPPRT 3.9%

State 8.5%

Federal 3.8%

Other Local Revenues 3.2%

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Overview - Expenditures

Our contractual agreements with certified staff and non-certified staff will increase salaries at 3%.

The premium rates for the employee medical plans are cost neutral for FY 20, due to a shift from a Co-op plan to a stand alone plan.

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Overview – Purchase Services

Transportation Fund expenses are budgeted to increase by 4%.

Our professional development purchase services funded with grants and local revenue will not change.

Our overall special education purchased services (LADSE, tuition, transportation) will increase/decrease to reflect student needs.

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Overview – Supplies & Materials

Supplies & Materials are expected to remain at FY 19 level.

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Overview – Equipment

Technology costs will increase due to ageing equipment and instructional needs.

Other fixed asset purchases are expected to remain stable.

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Overview – Capital Project Fund

Operations & Maintenance /Life Safety projects will remain under $ 300,000 with majority of the budget directed to address issues identified in the power study.

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Overview – Debt Payment

Debt service obligations for FY 20 include $1,595,000 in principal and $1,221,464 in interest. Part of the payments will be offset by Build American Bond interest reimbursement.

Our overall debt service obligation in FY 20 will be $3,000 more than FY 19. We will make transfers from other operating funds to service our debt.

Our continuing debt service is the pressure area of the budget.

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FY 20 TENTATIVE BUDGET

Revenues: $ 27,029,704

Expenditures: 25,754,270

Surplus(deficit)before debt service $ 1,275,434

Debt Payment(net of subsidy) 2,596,676

Surplus(deficit) after debt service $ (1,321,241)

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Next Steps

We will be monitoring legislation from Springfield that may affect the budget: property tax extension freeze, pensions, consolidations, or other possible mandates.

Continue to review each budget line and make adjusted as needed.

FY 19-20 Budget Hearing and Adoption is scheduled for August 26, 2019. The budget will be available for public inspection on July 23, 2019.