Oak Park and River Forest High School District 200 201 North - PDF document

Oak Park and River Forest High School District 200 201 North Scoville Avenue  Oak Park, IL 60302-2296 TO: Board of Education FROM: Cyndi Sidor, Chief Financial Officer DATE: June 25, 2020 RE: Preliminary Budget FY2021 BACKGROUND: Attached is a presentation of the FY2021 Preliminary Budget. This budget is provided for discussion and will be updated when the Tentative Budget is presented in August. The budget is a snapshot, at this point in time, based on information currently available to us. When we present the tentative budget, the numbers will be closer to actual. SUMMARY OF FINDINGS: Per the Board of Education’s request, this budget shows an increase within CPI (1.8%). Other budget highlights to note: The Administrative District for The Collaboration For Early Childhood Development (Oak Park School District 97) has notified us that they are skipping the next two scheduled contributions for July 1, 2020 and January 1, 2021 as they have determined that there is sufficient cash. The contribution amount the District will not pay next year will be $447,310.92, which has been removed from the preliminary budget. The State budget will be flat, based on the State calculations. Due to COVID-19, it is estimated that school districts will spend $1.5 million or more to address staff and student safety. The cost of COVID-19 is not included in the preliminary budget. RECOMMENDATION: For the Board of Education to review the Preliminary Budget for FY2021 which is for discussion at this time. The next step will be to present the Tentative Budget for FY2021 in August. Strategic Plan: Priority 4 Board Goal: District Policy: 4:10 TEL: (708) 383-0700 WEB: www.oprfhs.org TTY/TDD: (708) 524-5500 FAX: (708) 434-3910

Preliminary Budget June 2020

“ Board recommended us to stay within CPI allowance of 1.9% over prior year’s budgeted expenditures. ” Our expenditure increase is 1.8% from FY2020 budget. 2

Summary of Preliminary Budget - Revenues ▰ Tax Increment Financing (TIF) Surplus is gone ▰ Decrease in Corporate Personal Property Replacement Tax (CPPRT) ▰ Flat Evidence-Based Funding (EBF) ▰ Lower Interest rates ▰ Flat Federal & State Grants ▰ Lower Real Estate Tax Collections 3

Summary of Preliminary Budget - Expenditures ▰ Overall Expenditures increase within CPI – 1.8% ▻ Salaries/Benefits increase by 2.5% ▻ Salaries are mandated by current collective bargaining agreements. The non-affiliated staff is the only group that the Board annually controls and approves salary increases. ▻ Purchased Services/Supplies increase by 1.7% ▻ Capital/Non-capital Equipment decrease by 37% ▰ Construction paid from fund balance ▻ Project 1 = $10M ▻ Life Safety = $500k ▻ 10-year Maintenance = $4.13M 4

COVID-19 Impact on Budget ▰ Revenue Impact: ▻ Lower Real Estate Tax Collections (97.5%) ▻ Decrease in Corporate Personal Property Replacement Tax ▻ Flat Evidence-Based Funding ▻ Lower Interest Rates ▻ Flat Federal & State Grants ▰ Expenditure Impact is NOT in budget ▻ Estimating at least a $2M increase for PPE/Cleaning/Additional FTE ▻ Potential cost savings to consider ▰ District will continue to monitor impact on finances 5

Preliminary Budgeted Revenues – All Funds Preliminary Unaudited Unaudited Unaudited Budget Budget Actual Actual Actual SOURCE FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Real Estate Taxes $ 74,600,000 $ 59,298,000 $ 65,685,000 $ 65,927,000 $ 70,478,000 Other Local Revenues $ 6,614,000 $ 8,157,000 $ 7,839,000 $ 9,347,000 $ 7,535,000 EBF* $ 6,210,000 $ 6,210,000 $ 6,210,000 $ 2,460,000 $ 1,503,000 Other State-Aid $ 1,599,000 $ 1,560,000 $ 1,562,000 $ 2,448,000 $ 2,081,000 Federal Grants $ 3,286,000 $ 3,022,000 $ 2,952,000 $ 3,013,000 $ 3,145,000 Total Revenues $ 92,309,000 $ 78,247,000 $ 84,248,000 $ 83,195,000 $ 84,742,000 *Evidence based funding prior known as general state aid 6

Preliminary Budgeted Revenues by Source Federal Grants - 3% Other State-Aid - 2% EBF (GSA) - 7% Other Local Revenues - 7% Real Estate Taxes - 81% 7

Preliminary Budgeted Expenditures – All Funds Preliminary Unaudited Unaudited Unaudited Budget Budget Actual Actual Actual SOURCE FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Salaries $ 49,571,000 $ 48,540,000 $ 48,328,000 $ 46,447,000 $ 44,592,000 Benefits $ 12,360,000 $ 11,877,000 $ 11,369,000 $ 11,400,000 $ 12,089,000 Purchased Services $ 7,692,000 $ 8,298,000 $ 7,150,000 $ 7,100,000 $ 6,923,000 Supplies & Materials $ 4,974,000 $ 4,154,000 $ 3,998,000 $ 4,050,000 $ 3,622,000 Capital Equipment $ 383,000 $ 1,560,000 $ 5,136,000 $ 2,390,000 $ 1,152,000 Building Maintenance Capital $ 4,000,000 $ 3,650,000 $ 3,260,000 $ 3,410,000 $ 5,084,000 Non-Capital Equipment $ 595,000 $ - $ - $ - $ - Out-of-District Tuition & Other $ 5,955,000 $ 5,956,000 $ 5,934,000 $ 5,500,000 $ 5,202,000 Debt Service $ - $ - $ - $ 1,007,000 $ 2,426,000 Total Expenditures $ 85,530,000 $ 84,035,000 $ 85,175,000 $ 81,304,000 $ 81,090,000 8

Preliminary Budgeted Expenditures by Object SPED Tuition & Other - 7% Equipment - 1% Building Maintenance Capital - 5% Supplies & Materials - 6% Purchased Services - 9% Salaries - 58% Benefits - 14% 9

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Potential Additional Expenditures Related to COVID-19 TECHNOLOGY: SERVICES & SUPPLIES: SALARIES/SERVICES: ▰ Mask/Shields/Gloves ▰ Additional ▰ Student Chromebook/Repairs Faculty/Staff ▰ Cleaning Solution ▰ Transportation ▰ Staff Laptops/Repairs ▰ Disinfecting Wipes ▰ Training ▰ Hot Spots ▰ Thermometers ▰ Cameras ▰ Plexiglas ▰ Remote Office Solutions ▰ Signage ▰ Air Quality Equipment 12 COVID-19 known expenditures will be added in to the Tentative Budget

Budget Timeline March – June Board of Education is presented with the next fiscal year preliminary budget August 11, 2020 Board of Education reviews tentative budget, authorized placement of the tentative budget on display and calls for a public hearing on the budget on September 24, 2020 August 20, 2020 Tentative budget goes on display in District office and notice of public hearing scheduled for September 24, 2020 September 24, 2020 District holds public hearing on the budget and the Board of Education adopts the final budget September 25, 2020 The approved adopted budget is filed with the Illinois State Board of Education 13

Questions?

Addendum 1: Strategic Plan Details