Minooka School District 201 Finance Committee August 20, 2009

1. Minooka School District 201Finance CommitteeAugust 20, 2009 Al Gegenheimer, Superintendent Minooka Elementary School (Library?) From 6:00 to 8:00 p.m.

2. August 20, 2009 - Agenda • Welcome • Purpose of Committee • School Finance 101 • Review Enrollment & Facilities Plans • Review Tentative Budget • 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. Education SCHOOL FINANCE 101: • Educate key members of the community on School Finance in general • Educate members on School Finance specific to Minooka School District 201

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

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

7. 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.

8. 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

9. Enrollment Projections Attached

10. Enrollment History

11. Enrollment Projections * Estimated enrollment ** According to Ehler’s Projections

12. “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.

13. What does this mean? • Growth in the community has slowed. • Our student enrollments have grown very quickly in the past several years. • Our student enrollments will continue to grow in the near future. • The growth has required additional staff and classrooms in the past several years.

14. Facilities Status

15. Capacities Prior to Construction • Minooka Jr. High School - ~1100 • Minooka Intermediate School - ~250 • Minooka Elementary School - ~600 • Walnut Trails Elementary School - ~800 • Aux Sable Elementary School – ~800 Total district (maximum) capacity ~3550 full time students Administration is located 304 Mondamin Street, Suites 116, 120 & 124

16. New District Configuration for FY2010! Combined 5-6 & 7-8 Campus • 7th & 8th @ MJHS ~1100 • 5th-6th @ New MJHS ~1100 • Pre-K & Kind. @ MIS ~600 (FY2011) • 1st-4th @ MES ~700 • 1st-4th @ WT ~800 • 1st-4th @ AUX ~800 • 1st-4th @ Jones ~800 • Totals ~5900 Students

17. Estimates: (*Includes $2,593,950 of Life Safety Costs) *New 5th-6th Grade School - $28,147,681 Jones Elementary School - $17,856,474 *Addition to MES - $6,145,385 *Renovation to MIS - $4,844,410 *Total Costs - $57,459,265 Actual Costs: (*Includes Actual and Estimated Life Safety Costs) *New 5th-6th Grade School – $25,273,520 Jones Elementary School - $16,480,737 Addition to MES - $7,016,070 Renovations to MIS - $5,026,806 Total cost - ~$53,797,133 Construction Costs

18. Construction Costs (continued) • Total estimated costs = $57,459,265 • Total actual (and estimated) costs = $53,797,133 • Estimated under(over) budget = $3,662,132

19. Minooka School District 201FY2010 Tentative Budget Presented by Al Gegenheimer, Superintendent Presented to the Minooka School Community August 20, 2009

20. Welcome Thank you all for coming!

21. School Budgets • Budget must be approved by the end of the first quarter annually (September 30, 2009) • Tentative Budget must be placed on public display for at least 30 days (approved at the July Board Meeting) • District must hold a public hearing after budget is displayed for 30 days prior to approving the final budget

22. FY2010 Minooka 201 Budget • FY 2010 Budget is based on FY2009 experience & we have some good news and some not so good news • We had an operating surplus in FY2005, FY2006, FY2007, FY2008, & FY2009 • We will experience a large deficit this year and much of the deficit will not be easily resolved

23. Four Major Parts to Budget There are four major parts to the Budget: • Revenues • Expenditures • Budget Summary • Cash Summary

24. Funds The budget money received and expended gets divided up into nine (9) major funds: Education (10) Operations & Maintenance (20) Debt Service (30) Transportation (40) IMRF/Social Security (50) Capital Projects (60) Working Cash (70) Tort (80) Fire Prevention & Safety (90)

25. Revenues • The major sources of Revenue are: • Local Sources (1000) • Flow-Through (2000) • State Sources (3000) • Federal Sources (4000)

26. Expenditures • Sorted by Fund, Function, & Object: • FUND - Money is spent by FUND (nine major funds covered earlier) • FUNCTION – This identifies the program that money is being expended for (rows) • OBJECT – This identifies the type of expense (columns)

27. Budget Summary • Summarizes • Starting Fund Balance • Revenues • Expenses • Ending Fund Balance

28. Cash Summary • Summarizes cash: • Starting Fund Balance • Revenues • Expenses • Ending Fund Balance • Can never have “negative cash”

29. Operating Funds • Education Fund (10) • Operations & Maintenance Fund (20) • Transportation Fund (40) • Working Cash Fund (70)

30. The “Bank” – Working Cash (70) • Working Cash is the solution to a school district’s “cash-flow” problems • Why is there a problem? • How does it work? • School Finance experts (IASBO) recommend that the fund balance in the Working Cash Fund be maintained at somewhere between 33% & 50% of the projected operating expenses.

31. Non-Operating Funds • Debt Service Fund (30) • IMRF/Social Security (50) • Capital Projects (60) • Tort Fund (80) • Fire & Life Safety (90)

32. FY2010 Tentative Budget “Generalizations” • Operating Budget has a $4,189,449 deficit due to: • Purchase of school property ($2.4 million) • $950,000 is listed as “Provisions for Contingencies” • Includes increased expenses associated with opening two new buildings and lowering class sizes • Non-Operating Budget has a $27,119,208 deficit due to: • Construction costs associated with building two (2) new schools, putting an addition on Minooka Elementary School, and renovating the old Minooka Intermediate School • Life Safety Work at Minooka Jr. High, Intermediate (old), and Elementary Schools • Most of construction revenue was received in prior year (FY2008)

33. Operating Funds Cash Balances (projected for June 30, 2010) • Education Fund = $9,206,903 • O & M Fund = $2,961,777 • Transportation = $288,314 • Working Cash Fund = $10,528,727

34. Non-Operating Fund Balances(Projected for June 30, 2010) • Debt Service Fund = $2,553,742 • IMRF/SS Fund = $313,743 • Capital Projects Fund = $5,569,598 • Tort Fund = $25,000 • Fire & Life Safety Fund = ($1,087,310)

35. Any questions? Thank you for your time and interest in our schools.