Butler School District 53

Budget Hearing Presentation

Board of Education Meeting

September 17, 2018

Presentation Overview 2

I. Legal Requirements for Budget Adoption & Budget Development Process

II. Overview of Revenues and Expenditures

III. Budget Highlights

IV. Budget Summary

V. Peer Group Comparisons

Section I 3

Legal Requirements for Budget

Adoption

Legal Requirements for Budget

Adoption 4

• School Districts must adopt a Budget by the end of the

first quarter of the fiscal year

• Prior to adoption, a School Board must:

1. Place the Tentative Budget on Public Display for at

least 30 days

2. Schedule a date and time for a Public Hearing on the

Proposed Budget

3. Publish a “Notice of Public Hearing” in a newspaper

of general circulation within the District

4. Conduct a Public Hearing on the date and at the time

specified in the “Notice of Public Hearing”

Budget Development Process 5

Reflects Board of Education & District Goals

Utilizes a Zero-based Budgeting Model

Incorporates Longitudinal Data & Projections

Maintains Strong Educational Services

Supports Instruction, Technology & Professional Development

Supports Special Education Services

Maintains our S & P AAA Bond Rating

Allocates Resources for Capital Improvements

Goal: A “balanced” budget

Section II 6

Overview of Revenues and

Expenditures

Overview of Revenues 7

Revenues allocated to District Funds based on

Accounting Standards

Revenues are derived from four sources:

◼ Local

◼ Taxes, Payments in Lieu of Taxes (CPPRT), Tuition, Fees, Earnings on

Investments, Food Service, Activities, Textbooks, Other

◼ Flow Through

◼ State or Federal

◼ State

◼ General State Aid (Unrestricted) or Categorical Aid (Restricted)

◼ Federal

◼ Unrestricted or Restricted

Major Revenue Sources 8

Operating Funds – Ed, O&M, Trans, IMRF, WC

Budgeted Revenue Allocation by Source

Federal Revenue Other State Revenue 0%Evidence Based

1%Funding Flow-Through 3%

Revenue 0%

Other Local Revenue

8%

Property Taxes 88%

Local Property Taxes--CPI

Year CPI Determined CPI Rate

9

2017 2.1%

2016 2.1%

2015 0.7%

2014 0.8%

2013 1.5%

2012 1.7%

2011 3.0%

2010 1.5%

2009 2.7%

2008 0.1%

2007 4.1%

2006 2.5%

Two Years

Used to

Generate

FY19

Property Taxes

Historical Perspective 10

Percent of Change in December CPI-U for the Last 10 Years

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

0.1%

2.7%

Last 10 yr Average CPI-U for this period is 1.6%

3.0%

Last 5 yr average CPI-U is 1.4%

2.1% 1.7%

1.5% 1.5%

0.8% 0.7%

2.1%

Other Revenue Details 11

88% from Property Taxes (Collected 58.1% in FY18 for 2017 Levy)

Limited $s from State Grants: Transportation, Special Education

EBF Model—Tier 4 (3% of our total revenue)

Funds from Federal Grants at Historic Levels—Title I, Title II & Title IV

Interest Income—Budgeted @ FY18 Level (up slightly from prior year)

Estimated Corporate PPRT in Ed Fund—@FY18 Levels

Contributions from Newsletter Sponsors

Revenue Student Registration, Tech & Kindergarten—Fee Increase

Technology Repair Fees

PTO $25,000 toward New Playgrounds

Transferred $1,000,000 from the Education Fund to Operations & Maintenance, and then to the Capital Projects Fund (legal requirement)

Revenue by Fund 12

Revenue Allocation by Fund

IMRF / SS Capital Projects Working Cash

0%

Fire Prevention & Safety 1%

Educational 85%

Debt Service

Transportation 4%

1% 0%

Tort 0%

0%

O & M 9%

Overview of Expenditures 13

Expenditures allocated to District Funds based on

Accounting Standards

Expenditures are classified by one of 8 objects:

◼ Salaries

◼ Benefits

◼ Purchased Services

◼ Supplies

◼ Capital Outlay

◼ Other Objects (Including Debt and Tuition Payments)

◼ Non-Capitalized Equipment

◼ Termination Benefits

Major Expenditures 14

Operating Funds – Ed, O&M, Trans, IMRF, WC

Budgeted Expenditure Allocation by Object

Non-Capitalized Other Objects Equipment

Termination Benefits 5% 0% 0%

Provision for Capital Outlay Contingencies 2%

3%

Supplies And Materials

5%

Purchased Services 17% Salaries

57%

Benefits 11%

Expenditure Allocation by Fund

15

Education Fund

Operations & Maintenance

Transportation

IMRF/SS

Debt Services

Section III 16

Budget Highlights

Ed Fund Expenditures Highlights 17

Faculty Salary and Benefits 18

New collective bargaining agreement with OBEA.

Average salary increase over five year is 3.5%

Ed Fund Expenditure Highlights 19

Commitment to:

Professional Development $67,600

Commitment to Special Education $1.8M

Instructional Technology $650K ◼ Site Licenses

◼ STEM Lab at Brook Forest

◼ Network Upgrades

◼ Projectors

◼ Chromebooks

Legal Fees $150,000

New Financial Software—Skyward & Transition $82,000

Health Insurance Premiums—10% increase budgeted with 1/1/19 renewal; Insurance “reset” for faculty members & support staff

O&M Fund Expenditure Highlights 20

Architect Fees $140,000 (estimate)

Renovation Account $50,000

Immediate Needs for Repairs & Furniture

Snow Removal $15,000 (purchased service)

Cleaning Contract Renewed for 3 Years at 5%

Fixed Increase for Full Term (Yr. 2)

Parking Lot Reseal & Striping $30,000

Transportation Fund Expenditures 21

Rebid Transportation Spring 2017

Increase of 3% for FY19

Increased fees in FY19

Total transportation expenses increased $100,000

in FY18 over FY17

Capital Project Fund 22

BF New Playground $85,947

BJH New Playground $21,017

BJH Faculty Lounge Remodel $65,000

Projects and Funding Source

Date FY Project & Amount Amount Funding Source

7/18 FY19 Prepare for Summer 2019 $1,000,000 Transfer

6/19 FY20 BJH Air Conditioning, Doors, Electrical

Upgrades, New Chillers, Door Safety

Equipment & Related Work

BF—Door Safety Equipment

$ 1.9M

$1,000,000 Transfer

6/19 FY21 BF Safety Improvements, Tuck Pointing

BJH Tuck Pointing $700,000

$1,000,000 Transfer

2021 FY22 BJH Roof Replacement $1.455M $1,800,000 Bonds

2022 FY23 BJH Boiler Replacement $500,000

TOTAL: $4,555,000 $4,800,000

Section IV 24

Budget Summary

Budget Overview 25

Funds Revenue Expenditures Difference

Education $9,200,875 ($9,975,771) ($774,895)

O&M $1,989,772 ($2,366,574) ($376,802)

Bond & Interest $178,165 ($198,417) ($20,251)

Transportation $398,288 ($524,500) ($126,212)

IMRF $63,672 ($252,273) ($188,600)

Capital Projects $1,030,000 (173,000) 857,000

Working Cash $5,000 --- $5,000

Life Safety $10 --- $10

TOTALS $12,865,783 ($13,490,536) ($624,752)

Contingencies 26

Account Amount

Special Education $100,000

Faculty Salaries $65,000

Education Fund $100,000

O&M Fund $200,000

Transportation Fund $40,000

IMRF/FICA $5,000

TOTAL $510,000

Change in FY18 Property Tax Revenue 27

Property Taxes | Year Over Year Change (%)

10.00%

6.94%

0.00%

1.49%

2.91% 1.88%

-11.90%

-10.00%

-5.00%

0.00%

5.00%

-15.00%

2014 2015 2016 2017 2018 2019 2020

Budget Summary Excluding Transfers 28

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Revenues Expenditures

Historical Year-End Fund Balances 29

$10.57

$8.82

$6.92 $6.65

$6.10

$5.21

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Mil

lio

ns

Year End Fund Balances

Capital Projects30

Budget Summary with Planned Capital Projects

Butler Compared to Peer School Districts

31

Student Spending & Performance 32

D53

Lincolnshire-

Prairieview

Northbrook 27

Entire State… 33

District 53

Budget Goals & Summary 34

Monitor Ed Fund Expenditures & Revenues

Continue to Evaluate Educational Needs Each Year & Adjust Spending

Evaluate Program Offerings, Instructional Staff in Light of Enrollment

Monitor Investments

Monitor Plan for Building Infrastructure Improvements

Continue Preventative Maintenance

Use of “in house” Staff for Repairs/Renovations Plan for the Future with Flexibility

Monitor Capital Improvement Plan

Continue to Align Expenditures to Revenue

The Administration recommends that the FY19 Budget be approved as presented.

Butler School District 53

Budget Hearing Presentation

Board of Education Meeting

September 17, 2018