Minooka School District 201 Finance Committee September 17, 2008

1. Minooka School District 201Finance CommitteeSeptember 17, 2008 Al Gegenheimer, Superintendent Aux Sable School Library From 6:00 to 8:00 p.m.

2. September 17, 2008 - Agenda • Welcome • Purpose of Committee • School Finance 101 • Review Enrollment & Facilities Plans • Review Preliminary 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 * Actual as of 8/18/08 ** 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.

14. Facilities Status

15. Current Facilities & Capacities • Minooka Jr. High School - ~1100 • Minooka Intermediate School - ~400 • Minooka Elementary School - ~600 • Walnut Trails Elementary School - ~800 • Aux Sable Elementary School – ~800 Total district (maximum) capacity ~3700 full time students Administration is located 304 Mondamin Street, Suites 116, 120 & 124

16. Building Construction • February 2008 – Passed Referendum to Build: • New 5th-6th Grade Center • New Elementary School • Addition to Minooka Elementary School • Renovations to Minooka Intermediate School

17. 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 • 1st-4th @ MES ~700 • 1st-4th @ WT ~800 • 1st-4th @ AUX ~800 • 1st-4th @ New ~800 • Total ~5900 students

18. New 5th-6th Grade School - $28,008,841 New Elementary School - $17,856,474 Total New School cost - $45,865,315 Addition to Minooka Elementary School - $6.5 million Renovations to Minooka Intermediate School - $2.5 to $5 million Total cost - ~$54,865,315 Construction Costs

19. Minooka School District 201FY2009 Tentative Budget Presented by Al Gegenheimer, Superintendent Presented to the Minooka School Community September 17, 2008

20. Welcome Thank you all for coming!

21. School Budgets • Budget must be approved by the end of the first quarter annually (September 30, 2008) • 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. FY2009 Minooka 201 Budget • FY 2009 Budget is based on FY2008 experience & we have some good news • We had an operating surplus in FY2005, FY2006, FY2007, & FY2008 • We will be very close but this year we will again have a balanced budget

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) • Tort Fund (80)

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) • Fire & Life Safety (90)

32. FY2009 Tentative Budget “Generalizations” • Operating Budget has a $469,347 deficit due to: • Includes increased expenses associated with lowering class sizes • $950,000 is listed as “Provisions for Contingencies” • Non-Operating Budget has a $55.2 million deficit due to: • Construction costs associated with building two (2) new schools and putting an addition on Minooka Elementary School • Life Safety Work at Minooka Jr. High, Intermediate, and Elementary Schools • Purchase of school property • Most of construction revenue was received in prior year (FY2008)

33. Operating Funds Cash Balances (projected for June 30, 2009) • Education Fund = $10,216,061 • O & M Fund = $5,981,306 • Transportation = $452,426 • Tort Fund = $587,426

34. The “Bank” – Working Cash(Projected fund balance on June 30, 2009) Working Cash - $10,039,941 • The district’s total Operating Budget is $26,221,190 • If we were to follow IASBO (Illinois Association of School Business Officials) standards we should allow this fund to accumulate to a number between $8,740,397 and $13,110,595

35. Non-Operating Fund Balances(Projected for June 30, 2009) • Debt Service Fund = $5,950,895 • IMRF/SS Fund = ($109,741) [w/o $200k] • Capital Projects Fund = $4,648,140 • Fire & Life Safety Fund = $583,889

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