Oak Park and River Forest High School

District 200
201 North Scoville Avenue Oak Park, I L 60302-2296

TEL: (708) 383-0700 WEB: www.oprfhs.org TTY/TDD: (708) 524-5500
FAX: (708) 434-3910


TO: Board of Education

FROM: Tod Altenburg, Chief School Business Official

DATE: June 26, 2014

RE: Presentation of Preliminary Budget for FY 2015

BACKGROUND

This report was presented to the Finance Committee at the June 19th Special Finance meeting at
which time the vote was 3-0 to recommend to move the Preliminary Budget for FY 2015 to the Board
of Education for discussion at the June 26th meeting.

Attached is the Preliminary Budget for FY 2015. The primary purpose is for the Board to review a
first draft of the 2014-2015 school years spending plan.





EXECUTIVE SUMMARY

The Tentative Budget will be presented at the August Board of Education meeting for action to have
it placed on display for 30 days and to be adopted at the September Board Meeting.





RECOMMENDATION

Information only at this time.






Preliminary FY15 Budget
Oak Park and River Forest High School D200
Those Things That Are Best
June 19, 2014
Revenues by Fund
Fund Amount
Education $47,528,835
Operations & Maintenance 8,106,839
Transportation 1,588,958
IMRF/Social Security 2,083,128
Capital Projects 267,500
Bond & Interest 1,000
Tort 992,450
Life Safety 368,290
Working Cash 761,543
TOTAL $61,698,543
Total Revenue by Source
Source Amount %
Property Taxes $48,622,157 78.8%
Other Local Sources 6,993,369 11.3%
State Sources 3,888,728 6.3%
Federal Sources 2,194,289 3.6%
TOTAL $61,698,543 100.0%
Total Revenue by Source
Property Taxes
$48,622,157
79%
Other Local Sources
$6,993,369
11%
State Sources
$3,888,728
6%
Federal Sources
$2,194,289
4%
Total Revenue FY 2015
FY15 Preliminary vs. FY14 Amended
Total Revenue
Source
FY15
Preliminary
FY14
Amended
$
Change
%
Change
Property Taxes $48,622,157 $63,139,071 ($14,516,914) -22.99%
Other Local * $6,993,369 $7,009,796 ($16,427) -0.23%
State $3,888,728 $3,813,756 $74,972 1.97%
Federal $2,194,289 $2,247,550 ($53,261) -2.37%
TOTAL $61,698,543 $76,210,173 ($14,511,630) -19.04%
* This assumes complete receipt of TIF allocations.
Property Tax Revenues
Why are property tax revenues in
the FY15 Preliminary Budget down
$14.5 million when the December
2013 levy reduction was $10 million?
Property Tax Revenues (cont.)
In many Illinois counties, the tax levy overlaps
into two fiscal years.
In addition to this, Cook County utilizes an
unequal tax billing system that can result in
unusual year-over-year fluctuations.
Because the final EAV and tax rates are not yet
known at the time of the first installment, the
first installment (Spring) is an estimate based on
the prior years (in this case, 2012) levy.
The second installment (Fall) adjusts for actual
EAV, CPI, new construction, referenda, etc.
When there are abnormal changes in the levy
(debt service, referendum, intentional reduction
in the levy), it causes multiple year impacts.
Property Tax Revenues (cont.)
How do we arrive at the $48,622,157 in
anticipated property tax revenue for the FY15
Preliminary Budget?
Start with the Spring 2014 collection. The
Spring 2014 collection (which was counted
in the FY14 Budget not the FY15 Budget)
was approximately 55% of the prior years
(2012) levy extension (we use 53% to
account for the 2% that is uncollectable):
$33,771,083
Property Tax Revenues (cont.)
The Fall 2014 collection (which is the
first installment counted in the FY15
Budget) is the 2013 levy extension
minus what was received in the Spring
2014:
$53,851,791 2013 levy extension
- $33,771,083 received in Spring 2014
$20,080,708 Fall 2014 collection
Property Tax Revenues (cont.)
The Spring 2015 collection (which is the
second installment counted in the FY15
Budget) is 55% of the 2013 levy extension
(we use 53% to account for the 2% that is
uncollectable) regardless of what the Board
adopts for a 2014 Tax Levy:
$53,851,791 2013 levy extension
x 53% 55% estimate minus 2%
$28,541,449 Spring 2015 collection
Property Tax Revenues (cont.)
When the two figures are added
together, that is the amount that is used
in the FY15 Preliminary Budget.
$20,080,708 Fall 2014
+ $28,541,449 Spring 2015
$48,622,157 Property Tax Receipts
in FY15 Budget
This is the levy collection model that
PMA uses as well.
Expenditures by Fund
Fund Amount
Education $57,828,940
Operations & Maintenance 6,056,930
Transportation 1,852,082
IMRF/Social Security 2,452,722
Capital Projects 5,615,930
Bond & Interest 2,499,946
Tort 980,990
Life Safety 0
Working Cash 0
TOTAL $77,287,540
Expenditures by Function
Function Amount
General Instruction $27,877,454
Special Education 6,126,216
Vocational Programs 331,615
Interscholastic Programs 2,605,257
Summer School 310,987
Drivers Education 795,028
Other Instructional 4,974,934
Support Serv. Pupil 9,837,776
Support Serv. Admin. 16,312,397
Construction 5,615,930
Debt Service 2,499,946
TOTAL $77,287,540
FY15 Preliminary vs. FY14 Amended
Expenditures
Function
FY15
Preliminary
FY14
Amended
$
Change
%
Change
General Instruction $27,877,454 $24,854,044 $3,023,410 12.16%
Special Education 6,126,216 6,145,598 (19,382) -0.32%
Vocational Programs 331,615 256,687 74,928 19.19%
Interscholastic Programs 2,605,257 2,523,445 81,812 3.24%
Summer School 310,987 284,070 26,917 9.48%
Drivers Education 795,028 857,799 (62,771) -7.32%
Other Instructional 4,974,934 3,614,529 1,360,405 37.64%
Support Serv. Pupil 9,837,776 9,555,107 282,669 2.96%
Support Serv. Admin. 16,312,397 16,304,951 7,446 0.05%
Construction 5,615,930 7,516,826 (1,900,896) -25.29%
Debt Service 2,499,946 8,012,602 (5,512,656) -68.80%
TOTAL $77,287,540 $79,925,658 ($2,638,118) -3.30%
Summary Bottom Line
FY15 Preliminary Budget Totals
Revenues $61,698,543
Expenditures 77,287,540
Sources of Funds * 7,877,535
Uses of Funds * (7,877,535)
Change in Fund Balance (15,588,997)
Beginning Balance July 1, 2014 (unaudited) $127,098,260
Estimated Ending Balance June 30, 2015 $111,509,263
* Further explanation on next slide
Sources of/(Uses of)
Transfer of $5,348,430 from Operations
& Maintenance Fund to Capital Projects
Fund for Construction Projects.
Transfer of $2,529,105 from Working
Cash Fund to Bond & Interest Fund to
pay abatement of the B & I Levy for the
2013 tax year.
Next Steps
Date Action
June 19 (Tonight) Presentation of Preliminary FY15 Budget to Finance
Committee
June 26 Presentation of Preliminary FY15 Budget to Board of
Education
August 19 Presentation of Tentative FY15 Budget to Finance
Committee
August 19 Special Meeting of Board of Education to Adopt the
Resolution to place the Tentative FY15 Budget on Display
for 30 Days and set the date/time of the public hearing
August 28 Regular Board of Education Meeting (not 30 days before
Tuesday, September 23 Board Meeting, thats why August 19
Special Meeting is needed)
September 23 Public Hearing and Adoption of Final FY15 Budget
Within the next 30 days after
September 23
1. Post Adopted FY15 Budget on OPRFHS website
2. File Budget with County Clerk
3. File Budget with Regional Office of Education
4. File Budget with ISBE