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, CFO/CSBO DATE: November 21, 2019 RE: Five-Year Financial Projections BACKGROUND: This report was presented to the Committee of the Whole at its November 12 meeting for discussion only. The five-year projection provides an indication of how the District will perform financially over the next five years. It builds a predictive model, which helps the District make sound decisions using various assumptions concerning future revenues and expenditures. SUMMARY OF FINDINGS: On November 4, 2019, the Community Finance Advisory Committee (CFAC) voted in favor of the Five-Year Projection without Project 2. This projection shows that the District will have a balanced budget while spending down fund balance to pay for Project 1. Using $32.5 million to pay for Project 1 will lower the fund balance aligning the District to be consistent with Board Policy 4:20 Fund Balance 25% to 75%. Attached are materials to assist in the discussion including: 1) Historical comparison of actual tax extension to maximum allowable extension 2) Components of the levy 3) A comparison of the projected revenues versus expenditures without Project 2 taking CPI and not taking CPI 4) A comparison of the projected revenues versus expenditures with Project 2 taking CPI and not taking CPI RECOMMENDATION: For information only. Strategic Plan: Priority 4 Board Goal: District Policy: 4:20 TEL: (708) 383-0700 WEB: www.oprfhs.org TTY/TDD: (708) 524-5500 FAX: (708) 434-3910

5-Y EAR P ROJECTION O AK P ARK AND R IVER F OREST H IGH S CHOOL D ISTRICT 200

5-YEAR PROJECTION ASSUMPTIONS • Detailed assumptions were approved by Community Finance Advisory Committee (CFAC) at November 5, 2019 meeting • Includes 2019 Estimated Levy to be approved in December 2019 • Assumptions & limitations are detailed at the end of the presentation • Projection will be updated as additional information becomes available 2

5-YEAR PROJECTION WITHOUT PROJECT 2 D I S T R I C T P RO J E C T E D TO R E M A I N W I T H I N AC C E P TA B L E F U N D B A L A N C E R A N G E A F T E R FAC I L I T I E S M A S T E R P L A N - P RO J E C T 1 3

FUND BALANCE WITHOUT PROJECT 2 P E R P O L I C Y 4 : 2 0 , T H E D I S T R I C T W I L L TA R G E T A N OV E R A L L F U N D B A L A N C E B E T W E E N 2 5 % A N D 7 5 % . T H E D I S T R I C T R E C O M M E N D S M A I N TA I N I N G F U N D B A L A N C E B E T W E E N 4 0 % A N D 7 5 % . 4

5-YEAR PROJECTION WITH PROJECT 2 R E M A I N D E R O F P RO J E C T 2 TO B E C O M P L E T E D A F T E R F Y 2 5 . 5

FUND BALANCE WITH PROJECT 2 P E R P O L I C Y 4 : 2 0 , T H E D I S T R I C T W I L L TA R G E T A N OV E R A L L F U N D B A L A N C E B E T W E E N 2 5 % A N D 7 5 % . T H E D I S T R I C T R E C O M M E N D S M A I N TA I N I N G F U N D B A L A N C E B E T W E E N 4 0 % A N D 7 5 % . 6

EXPENDITURE ASSUMPTIONS • Salaries • 2.6% - 3.6% range based on bargaining unit negotiated contracts, FTE changes, overtime, retirements • Benefits • 3.2% - 5.3% range based on historical averages • Purchased Services • 3.0% – 4.0% based on current contracts & historical averages • Supplies • 1.75% based on expectation • Capital • .05% based on expectation • Project 1 and Life Safety construction cost are included • Project 2 Projection - design to begin in FY24 and continue past FY25 • Tuition • 5.5% Based on historical averages 7

ASSUMPTION LIMITATIONS • No property tax freeze • No TRS cost shift • Project 2 Projection • No official plans have been approved for Project 2 • Capital campaign donations • Debt not in model • Project 2 design begins in FY24 and construction in FY25 8