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

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

• nly.

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

5-YEAR PROJECTION

OAK PARK AND RIVER FOREST HIGH SCHOOL DISTRICT 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
• f the presentation
• Projection will be updated as additional

information becomes available

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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

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FUND BALANCE WITHOUT PROJECT 2

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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 % .

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 .

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FUND BALANCE WITH PROJECT 2

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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 % .

EXPENDITURE ASSUMPTIONS

• Salaries
• 2.6% - 3.6% range based on bargaining unit negotiated contracts, FTE changes,
• vertime, 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

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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

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