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Minooka School District 201 Finance Committee November 18, 2008

Minooka School District 201 Finance Committee November 18, 2008. Five Year Enrollment Projections, Financial Projections, & Facilities Plan Presented by Al Gegenheimer, Superintendent. November 18, 2008 - Agenda. Welcome Purpose of Committee School Finance 101

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Minooka School District 201 Finance Committee November 18, 2008

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  1. Minooka School District 201Finance CommitteeNovember 18, 2008 Five Year Enrollment Projections, Financial Projections, & Facilities Plan Presented by Al Gegenheimer, Superintendent

  2. November 18, 2008 - Agenda • Welcome • Purpose of Committee • School Finance 101 • Review Updated Enrollment Projections • Review Updated Facilities Plans • Review Updated Financial Projections • Discuss 2008 Levy • Set Next Meeting Date • Adjourn at 8:00 P.M.

  3. Purpose of Committee • Education: The committee will learn about School Finance and the critical issues confronting the school community. • Feedback: The committee will provide feedback to the Board and administration. • Advisory: The committee will serve as an advisory committee to the Board of Education.

  4. School Finance 101 Two very good publications: • “Understanding School Finance” • “Where does the Lottery Money Go?”

  5. Revenue Sources for Schools • Property Taxes • Corporate Personal Property Replacement Tax • General State Aid • Grants & Entitlements • Fees

  6. Expenses at Minooka Schools • 80% to 90% of all expenses can be tied to salaries & benefits. • Remaining 10% to 20% is spent on everything from band-aids to paper clips, electricity to phones, computers to playground balls, etc.

  7. School Funds • 10 Education Fund • 20 Operations & Maintenance Fund • 30 Debt Service Fund (Bond & Interest Fund) • 40 Transportation Fund • 50 IMRF/Social Security Fund • 60 Capital Projects Fund (Site & Construction) • 70 Working Cash Fund • 80 Tort Fund (Rent Fund) • 90 Fire Prevention & Safety Fund

  8. Enrollment Projections Handout

  9. What is a Projection? • A Projection is a best “guess” at what will happen in the future, based on past experience. • All projections are most accurate in the first few years and are considered unreliable after three to five years.

  10. District Enrollment 2002-03 - 1536 2003-04 - 1778 2004-05 - 2245 2005-06 - 2801 2006-07 – 3281 2007-08 – 3637 2008-09 – 3852 2009-10 – 4280* 2010-11 – 4719* 2011-12 – 5262* 2012-13 – 5855* 2013-14 – 6460* Enrollment grew by 215 students from 2007-08 to 2008-09 Enrollments grew by roughly 500 students per year from 2003 through 2007 What does this mean? Rapid growth - “Exploding Enrollments” Despite slowed growth in enrollment over the last two years, projections show enrollment will continue to increase by more than 200 students annually Enrollments and Projection Findings *Projections made using Cohort Survival Methodology

  11. “Exploding Enrollment” • Illinois defined term given to schools subjected to tremendous enrollment growth • Defined as: Schools that are growing at a rate of 10 percent or more of their current population or by 200 or more students annually.

  12. What does this mean? • We need classroom space for an additional projected 2000-2400 full time students.

  13. Facilities Plan

  14. Current Facilities & Capacities • Minooka Jr. High School (Pre-K, 7th-8th) ~1200 • Minooka Intermediate School (5th-6th) ~400 • Minooka Elementary School (k-4th) ~600 • Walnut Trails Elementary School (k-5th) ~800 • Aux Sable Elementary School (k-5th) ~800 Total district (maximum) capacity ~3800 students Administration is located 304 Mondamin Street, Suites 116, 120, & 124

  15. New Configuration Combined 5th-6th & 7th-8th Campus • 7th & 8th @ MJHS ~1100-1200 • 5th-6th @ New School ~1100-1200 • Pre-K & K @ MIS ~600 • 1st-4th @ MES ~600 • K-4th @ WT ~800 • 1st-4th @ AUX ~800 • K-4th @ New ~800 • Total ~6000 students

  16. Where are we now? A review of the past gives us insight into the future Financial History + Assumptions = Financial Projections

  17. Assessed Value History

  18. Historic Total Tax Rates & Total Extensions

  19. Historic Education Fund Revenue

  20. Historic Education Fund Expenses

  21. Revenues/Expenses History(amount is per $1,000,000)

  22. Surplus/Deficit FY2002-FY2008(amount is per $1,000,000) ?

  23. Financial Projections November 18, 2008

  24. What is a Projection? • A Projection is a best “guess” at what will happen in the future, based on past experience. • All projections are most accurate in the first few years and are considered unreliable after three to five years.

  25. Significant Assumptions: • All costs will increase at an average rate of ~5% annually. • Assessed valuation will grow at a rate of ~5% per year. • Other Revenue will continue to grow at a rate of 1% per year. • Levy revenue recognized will be 50% of the current year and 50% of the prior year levy. • Other expenses will continue to run at an average of 46% of salary and benefit costs. • Benefits as a percentage of salary costs will increase ½ of 1 percent per year. • Education Fund includes: Tort Levy, Lease Levy, and Special Education Levy. • Assumes increased operating (staffing) costs associated with opening two new schools in the Fall of 2009.

  26. Assessed Value Projections * Actual

  27. Total Tax Rate Projections(Tax rate will be less than $2.9643.)

  28. Projected Education Fund Revenue

  29. Projected Education Fund Expenses

  30. Revenues/Expenses Projections(amount is per $1,000,000)

  31. Surplus/(Deficit)(In Millions)

  32. Debt vs. Deficit • There is a difference between debt and deficit and it’s important to know the difference. • A deficit occurs when expenses exceed revenues in a given year. • A deficit does not necessarily mean you have debt. • Continued deficit spending leads to debt. • You have debt when you do not have enough money to operate. • Both can be bad things but Minooka 201 does not have debt; we have a projected deficit in the Education Fund that will not go away without changing what we are doing or how we are funded.

  33. What does all of this mean? • We have addressed the enrollment projections (district-wide). • Class size has been addressed and maintained (lowered) throughout the projections. • The financial projections include adding and staffing two new schools in the Fall of 2009. • We will experience a significant deficit in FY2010 and beyond, but prior to FY2010 the budget will be balanced. • Cash balances in the Education Fund will carry the district throughout the life of these projections. • We will need to monitor the deficits and be prepared to address the projected deficits.

  34. Any questions? Thank you for your time.

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