Minooka School District 201

Finance Committee
January 19, 2012
Updated Financial Projections
Presented by Al Gegenheimer, Superintendent

January 19, 2012 - Agenda

Welcome
Purpose of the Committee
2011 Levy Abatement
Review Updated Financial Projections
Set Next Meeting Date
Adjourn at 8:00 P.M.

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.

Where are we now?

A review of the past gives us
insight into the future
Financial History
+ Assumptions
= Financial Projections

Assessed Value
History
Levy Year

EAV

% Increase

2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

$350,908,619
$446,728,329
$492,048,449
$546,660,396
$578,047,798
$665,802,675
$807,459,788
$876,709,777
$891,881,592
$842,805,535

23.04%
21.45%
9.21%
9.99%
5.43%
13.18%
17.54%
7.9%
1.7%
-5.82%

Historic Total Tax Rates

& Total Extensions
Levy Year

Total Tax Rate

Extension

2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

$2.9704
$2.8053
$2.7908
$2.9643
$2.9344
$2.8518
$2.8184
$2.8684
$2.9295
$2.9544

$10,423,389
$12,532,069
$13,732,088
$16,204,654
$16,962,234
$18,987,360
$22,757,446
$25,147,571
$26,127,968
$24,983,642

Historic Education Fund Revenue

Academic
Year

Education
Fund Levy

Other
Revenue

Total
Revenue

2001/02

$5,647,127

$1,720,328

$7,367,455

2002/03

$6,298,106

$2,628,485

$8,926,591

2003/04

$8,057,236

$3,242,222

$11,299,458

2004/05

$9,214,231

$3,832,931

$13,047,162

2005/06

$10,540,853

$4,615,904

$15,156,757

2006/07

$11,079,629

$4,945,267

$16,024,896

2007/08

$13,082,776

$8,262,826

$21,345,602

2008/09

$13,764,572

$6,298,303

$20,062,875

2009/10

$13,865,248

$6,859,400

$20,724,648

2010/11

$13,183,832

$7,390,876

$20,574,708

Historic Education Fund Expenses

Academic Salaries and
Year
Benefits
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11

$5,695,060
$6,185,142
$7,168,754
$8,069,080
$8,871,932
$10,998,055
$12,762,620
$14,092,210
$16,384,095
$15,736,253

Other
Costs

Total
Expenses

$1,556,982
$2,285,940
$2,705,387
$3,595,256
$3,959,300
$4,724,985
$5,538,332
$5,252,670
$6,474,058
$6,838,674

$7,252,042
$8,471,082
$9,874,141
$11,664,336
$12,831,232
$15,723,040
$18,300,952
$19,344,880
$22,858,153
$22,574,9278

Revenues/Expenses
History

(amount is per $1,000,000)

$25.00
$22.57

$22.86
$21.35
$20.06

$20.00

$20.72 $20.57

$20.13
$16.02

$15.00

$15.15
$12.83
$13.05

$18.30

$15.72

Revenues

$11.30

$10.00

Expenses

$11.66
$8.93$8.47
$7.37
$7.25

$9.87

$5.00
$0.00

FY2002

FY2004

FY2006

FY2008

FY2010

Surplus/Deficit FY2002-FY2011
(amount is per $1,000,000)

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Financial Projections
January 18, 2012

11

Significant Assumptions:
1.
2.
3.
4.
5.
6.
7.
8.
9.

All costs will increase at an average rate of ~3% annually.

Assessed valuation will lay flat for three years then grow at a
rate of ~3% per year.
Other Revenue will increase at a rate of 1% per year, due
primarily to GSA funding formula.
Levy revenue recognized will be 50% of the current year and
50% of the prior year levy.
For projection purposes other expenses will continue to run at
an average of 47% of salary and benefit costs.
Benefits as a percentage of salary costs will increase of 1
percent per year.
Education Fund includes: Tort Levy, Lease Levy, and Special
Education Levy.
Increase in Tort revenue due to refinancing.
Gradual increase in the total tax rate after 2011 levy.
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Assessed Value
Projections
Levy Year
2011
2012
2013
2014
2015

EAV
$842,805,535
$842,805,535
$842,805,535
$868,089,701
$894,132,392

% Increase
0%
0%
0%
3%
3%

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Total Tax Rate Projections

Tax rate will be less than $2.9643 for five years (2007-2011).

Levy Year
2011
2012
2013
2014
2015

Total Tax Rate

~$2.9600
~$2.9600?
~$2.9600?
~$2.9600?
~$2.9600?

Extension
~$25,000,000
~$25,500,000
~$25,830,000
~$26,860,000
~$27,920,000

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Projected Education Fund

Revenue
Academic
Year

Education
Fund Levy

Other
Revenue

Total
Revenue

2011/12
2012/13
2013/14
2014/15
2015/16

$15,275,260
$16,261,933
$16,350,427
$16,595,684
$17,093,554

$7,464,785
$7,539,433
$7,614,827
$7,690,975
$7,767,885

$22,740,045
$23,801,365
$23,965,254
$24,286,659
$24,861,439

15

Projected Education Fund

Expenses
Academic Salaries and
Year
Benefits
2011/12
2012/13
2013/14
2014/15
2015/16

$16,321,075
$16,932,630
$17,572,468
$18,242,248
$18,943,744

Other
Costs

Total
Expenses

$6,706,889
$6,908,096
$7,115,339
$7,328,799
$7,548,663

$23,027,965
$23,840,726
$24,687,807
$25,571,047
$26,492,407

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Revenues/Expenses
Projections

(amount is per $1,000,000)

$30.00
$25.00
$20.00
Revenues

$15.00

Expenses

$10.00
$5.00
$0.00

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

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Surplus/Deficit

(amount is per $1,000,000)

$0.00

($0.04)

($0.50)

($0.29)
($0.72)

Surplus/
Deficit

($1.00)
($1.28)

($1.50)
($1.63)

($2.00)

FY2011
($2.00)

FY2013

FY2015

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Debt vs. Deficit

There is a difference between debt and deficit
and its 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 (yet); 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.
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What does all of this mean?

1. Although significantly smaller, we are still experiencing

a deficit in each year of this projection.

2. The last two years we created (and implemented) a
deficit reduction plan that has helped the current
projections (district-wide).
3. Cash balances in the Education and Working Cash
Funds will carry the district throughout the life of these
projections (5 years).
4. How do we address the deficits?
a)
b)

Only two ways to eliminate the deficit Increase Funding or

Decrease Spending
Can we eliminate the deficit by cutting staff and programs
without harming the academic program?

i.
ii.
c)

Efficiencies?
Bright Star Award

Do we start planning other means to increase funding?

i.
ii.
iii.

Grants
State Funding
Local Funding

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Next Meeting Topic,

Date, and Time?
Topic: School Fees & Legislative Update
Date: February 15, 2012
Time: 6:00 to 8:00 P.M.

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Any questions?
Thank you for your time.

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