DeKalb CUSD #428 Tentative Budget FY 2019-2020 August 6, 2019 - PowerPoint PPT Presentation

DeKalb CUSD #428 Tentative Budget FY 2019-2020 August 6, 2019 Board of Education Meeting UPDATED Presented by: Cynthia Carpenter Director of Business and Finance, CSBO

FY2019-2020 Budget Process Timeline Date Action August 6, 2019 Approve Tentative Budget for Public Inspection (At lease 30 calendar days prior to adoption) August 16, 2019 Notice to local newspaper stating Budget available for Public Inspection and publish date of Public Hearing for Budget August 16 -September Budget available for Public Inspection 17, 2019 September 17, 2019 Public Hearing on Budget Board Adopts Final FY 2020 Budget Budget posted on District web site after formal adoption 2

Budget � A budget is a financial plan (plans can change) � Used as a tool for projections, planning and to monitor spending � Estimate of revenues to be received and expenditures to be spent 3

Modified Accrual Basis � Record revenue when received � Expenses when paid In addition at Fiscal Year End - You account for revenue up to 60 days after the year has closed that belong in the prior fiscal year (typically includes funds due from the State of Illinois) . - You defer property tax revenue to correct fiscal year (i.e. property tax dollars received in May and June 2019 (FY18- 19) recorded as revenue in July 2019 (FY19-20) ). - You record expenses paid out after 60 days if they pertain to prior fiscal year. 4

State Payments Categorical and Grant Payments As of July 25, 2019 – Vouchers Awaiting Processing by the • Comptroller for FY18-19 for the district = $1,297,121 (Last year the amount was $1,355,575) This amount represents categorial reimbursements (special • education and transportation) and PreK Grant funds Last year waited until September 2018 to receive most funds • owed from the prior fiscal year Evidenced Based School Funding (EBF) The district has received 100% of the EBF amount of • $28,666,660 for FY18-19 FY19-20 budget includes this total but no additional funding; • should know by August 10 th what additional funding will be UPDATE : FY19-20 EBF calculations released on August 5 th – • Additional $2,880,149 in funding 5

State School Funding Formula FY19-20 - DeKalb 428 Adequacy Level = 60% = Tier 1 Progression of EBF Funding FY16-17 $ 20,169,345 General State Aid $ 1,531,287 Special Ed Personnel Reimbursement $ 863,110 Special Ed Funding for Children $ 94,238 Special Ed Summer School $ 205,745 Bilingual (English Learners) $ 22,863,725 Total FY16-17 Funding FY17-18 Initial FY17-18 Base Funding Minimum $ 22,863,725 Additional Tier 1 Allocation $ 2,819,824 Total FY17-18 EBF $ 25,683,549 FY18-19 Initial FY18-19 Base Funding Minimum $ 25,683,549 Additional Tier 1 Allocation $ 2,983,111 Total FY18-19 EBF $ 28,666,660 FY19-20 Initial FY19-20 Base Funding Minimum $ 28,666,660 Additional Tier 1 Allocation $ 2,880,149 Total FY19-20 EBF $ 31,546,809 6

SUMMARY BY FUND AND SOURCE Tentative EDUCATION FUND (INCLUDES TORT FUND) Budget Local Sources $ 43,633,790 FY 2019-2020 Tentative State Sources $ 30,815,412 Federal Sources $ 5,591,816 Revenue Budget – All TOTAL EDUCATION $ 80,041,018 Funds OPERATIONS AND MAINTENANCE FUND Local Sources $ 5,354,618 State Sources $ 2,750,000 TOTAL O&M FUND $ 8,104,618 DEBT SERVICE FUND Local Sources $ 3,727,207 TOTAL DEBT SERVICE FUND $ 3,727,207 TRANSPORTATION FUND Local Sources $ 2,365,096 State Sources $ 3,789,076 TOTAL TRANSPORTATION FUND $ 6,154,172 MUNICIPAL RETIREMENT FUND Local Sources $ 2,098,937 TOTAL MUNICIPAL RETIREMENT FUND $ 2,098,937 CAPITAL PROJECTS FUND Local Sources $ 15,000 TOTAL CAPITAL PROJECTS FUND $ 15,000 WORKING CASH FUND Local Sources $ 200,000 TOTAL WORKING CASH FUND $ 200,000 LIFE SAFETY FUND Local Sources $ 618,372 7 TOTAL LIFE SAFETY FUND $ 618,372 TOTAL ALL FUNDS $ 100,959,324

Operating Budget Projected Revenues FY19-20 Federal Sources $96,598,745 $5,591,816 5.79% -Title Grants -National School Lunch Program Reimbursement (free/reduced lunch) State Sources Local Sources $37,354,488 $53,652,441 38.67% 55.54% -Evidenced Based Funding (f/k/a GSA) -State Funded Grants - Property Taxes (including -Special Education Reimbursement Corporate Personal Property Tax) -Transportation Reimbursement -Student Fees (Including lunch money collected) -Donations Education, Tort, O&M, Transportation, IMRF, Working Cash 8

SUMMARY BY FUND AND OBJECT Tentative EDUCATION FUND (INCLUDES TORT FUND) Budget SALARIES $ 45,540,418 FY 2019-2020 BENEFITS $ 13,932,615 Tentative PURCHASE SERVICES $ 7,058,981 MATERIALS $ 1,624,159 Expenditure CAPITAL OUTLAY $ 1,357,130 OTHER (includes Tuition) $ 5,077,742 Budget – All TOTAL EDUCATION FUND $ 74,591,045 Funds OPERATION AND MAINTENANCE FUND SALARIES $ 2,788,277 BENEFITS $ 574,951 PURCHASE SERVICES $ 1,803,035 MATERIALS $ 1,766,688 CAPITAL OUTLAY $ 1,494,686 OTHER $ 178,331 TOTAL O&M FUND $ 8,605,968 DEBT SERVICE FUND BOND INTEREST $ 2,261,496 BOND PRINCIPAL $ 12,650,809 BOND FEES $ 5,000 TOTAL DEBT SERVICE FUND $ 14,917,305 TRANSPORTATION FUND SALARIES $ 53,239 BENEFITS $ 15,814 PURCHASE SERVICES $ 6,001,826 MATERIALS $ 490,758 CAPITAL OUTLAY $ 25,000 TOTAL TRANSPORTATION FUND $ 6,586,637 TOTAL MUNICIPAL RETIREMENT FUND $ 2,580,051 CAPITAL PROJECTS FUND $ 200,000 9 TOTAL LIFE SAFETY FUND $ 600,000 TOTAL ALL FUNDS $ 108,081,005

Operating Budget Projected Expenditures FY19-20 Capital Outlay $92,363,700 $2,876,816 Other (includes 3.11% Tuition) $5,256,073 Capital Outlay Amounts paid for the acquisition of fixed assets 5.69% or additions to fixed assets. Other Materials Amounts to reimburse other educational $3,881,605 agencies for services rendered to students. 4.20% Materials Classroom, cleaning supplies, maintenance/custodial utilities. Salaries Purchased Services $48,381,934 $14,863,842 52.38% 16.09% Salaries Purchased Services Wages paid to district employees. Example: First Student, Aramark, Benefits Legal, liability insurance. $17,103,431 Benefits 18.52% Health, dental, TRS, vision, IMRF, payroll taxes. Education, Tort, O&M, Transportation, IMRF, Working Cash 10

Tentative Budget Summary by Fund FY 2019-2020 Est. Adj. Est. Surplus or Fund Adjusted Beg. Balance End Balance SUMMARY BY FUND Revenue Expenditures (Deficit) Transfers Surplus/(Deficit) 7/1/19 6/30/20 Education Fund (includes Tort) $ 80,041,018 $ 74,591,045 $ 5,449,973 $ - $ 5,449,973 $ 18,282,203 $ 23,732,176 Operations and Maintenance Fund $ 8,104,618 $ 8,605,968 $ (501,350) $ - $ (501,350) $ 2,267,582 $ 1,766,232 Transportation Fund $ 6,154,172 $ 6,586,637 $ (432,465) $ - $ (432,465) $ 1,670,533 $ 1,238,069 Municipal Retirement Fund $ 2,098,937 $ 2,580,051 $ (481,114) $ - $ (481,114) $ 1,497,712 $ 1,016,598 Working Cash Fund $ 200,000 $ - $ 200,000 $ (10,000,000) $ (9,800,000) $ 15,003,149 $ 5,203,149 TOTAL OPERATING FUNDS $ 96,598,745 $ 92,363,700 $ 4,235,045 $ (10,000,000) $ (5,764,955) $ 38,721,178 $ 32,956,223 Debt Service Fund $ 3,727,207 $ 14,917,305 $ (11,190,098) $ 10,000,000 $ (1,190,098) $ 1,775,910 $ 585,812 Capital Projects Fund $ 15,000 $ 200,000 $ (185,000) $ - $ (185,000) $ 1,035,303 $ 850,303 Life Safety Fund $ 618,372 $ 600,000 $ 18,372 $ - $ 18,372 $ 507,792 $ 526,164 GRAND TOTAL $ 100,959,324 $ 108,081,005 $ (7,121,681) $ - $ (7,121,681) $ 42,040,182 $ 34,918,501 Est. Ending Operating Fund Balance as a % of Expenditures = 35.68% Note: Fund transfer from Working Cash to Bond & Interest Fund represents amount allocated to pay down bond principal when 2010 bonds are restructured 11

Dekalb CUSD #428 History Revenue, Expenditures, and Fund Balance Operating Funds (Education, Tort, O&M, Transportation, IMRF, Working Cash) Surplus/ Fund Balance % of Fiscal Year Revenue Expenditures (Deficit) Transfers Fund Balance Expenditures 2013 $ 70,179,762 $ 70,439,899 $ (260,137) $ - $ 26,679,228 37.88% 2014 $ 71,549,003 $ 73,583,147 $ (2,034,144) $ - $ 24,645,084 33.49% 2015 $ 76,313,058 $ 77,902,752 $ (1,589,694) $ - $ 23,055,390 29.60% 2016 $ 78,913,074 $ 79,134,401 $ (221,327) $ (347,169) $ 22,486,894 28.42% 2017 $ 85,933,699 $ 81,123,901 $ 4,809,798 $ 27,296,692 33.65% 2018 $ 89,953,791 $ 81,721,605 $ 8,232,186 $ 35,528,878 43.48% 2019 BUDGET-ADJ $ 92,097,365 $ 87,155,065 $ 4,942,300 $ (1,750,000) $ 38,721,178 44.43% 2020 PROJECTED $ 96,598,745 $ 92,363,700 $ 4,235,045 $ (10,000,000) $ 32,956,223 35.68% * Includes one-time spending of construction grant dollars on technology (classroom equity and 1:1 pilot program) 2014 = $1,080,737 2015 = $490,867 12

Budget Considerations • Additional State EBF allocation for FY2019-2020 is not yet known UPDATE: Add’l $2.8 million • Teacher contract negotiations in process • Property Tax Freezes (Consideration for future budgets) • Pension Payments – Cost Shift (Consideration for future budgets) • Illinois Comptroller Total Delayed Payments – ($6.3 billion backlog as of 7/25/19; was $7.3 billion last year at this time); District waiting for $1.3 million from FY18-19 state categorical payments 13