Ottawa Elementary District #141 Fiscal Year 2019 Budget

Education Fund The Education Fund is the largest fund. It represents 68% of the district’s total expenditures in FY19. It pays all salary, benefits, textbook, materials, supplies, and equipment costs associated with students during the teaching and learning process. Total revenues (minus working cash abatement) for the year is estimated to be $17,305,776, a decrease of $645,075 (-3.7%) from last year. Reason for decrease: -MCAT’s will total fewer revenues in FY19 due to: -Late/discontinued FY17 MCAT payments received in FY18 Total expenditures for the year are estimated to be $17,331,368, a decrease of $47,064 (<1 % ) from last year. Reasons for decrease: -Multiple retirements in FY18; -Reduction of 1 teaching section. Note: An abatement of working cash to the Ed Fund at the close of FY19 is not anticipated.

Education Fund Year Revenues Expenditures Difference 2019 Projected 17,305,776 17,331,368 (25,592) 2018 17,950,851 17,378,432 572,419 2017 16,122,303 17,112,154 (989,851) 2016 15,843,956 17,419,962 (1,576,006) 2015 15,604,323 17,558,680 (1,954,357) 2014 16,466,277 17,492,658 (1,200,000) 2013 16,509,609 17,391,934 (882,324)

Operations and Maintenance Fund The O&M pays custodial and maintenance salaries, as well as all material, supply, and equipment costs associated with building and grounds maintenance. Total revenue for the year is estimated to be $997,952, an increase of $33,935 (3.5%) from last year. Total expenditures for the year are estimated to be $2,242,183, an increase of $770,506 (52%) from last year. Reasons for the increase: -Boiler project at Jefferson -Parking lot upgrades earmarked for this year -Bat guano clean up Note: Working cash bonds earmarked for capital projects will cover the bulk of the boiler project costs

Operations & Maintenance Year Revenues Expenditures Difference 2019 Projected 997,952 2,242,183 (1,244,231) 2018 964,017 1,471,677 (507,660) 2017 946,337 1,327,393 (381,056) 2016 964,816 1,515,472 (550,657) 2015 931,227 2,115,047 (1,183,820) 2014 1,242,104 1,606,228 364,124 2013 1,665,194 1,391,793 273,401

Debt Service Fund The Debt Service (Bond and Interest) Fund was created to allow school districts to pay off bonds issued for allowable purposes. The levy is determined by the amount due for bonds. We currently have 3 bond issues outstanding: -2017 Working Cash Bond -2015 Life Safety Bond -2010B Building Bond Total revenue for the year is estimated to be $3,003,518, a decrease of $132,584 (4.4%) from last year. Reason: -We issued the 2017 working cash bond at a lower rate than the previous bond in 2015. Total expenditures for the year are estimated to be $3,004,518, a decrease of $142,013 (4.7%) from last year.

Debt Service Year Revenues Expenditures Difference 2019 Projected 3,003,518 3,004,518 (1,000) 2018 3,136,102 3,146,531 (10,429) 2017 3,123,702 3,147,358 (23,656) 2016 2,128,056 2,129,791 (1,735) 2015 2,039,613 2,040,563 (950) 2014 3,766,830 3,845,523 (78,694) 2013 2,295,293 2,303,388 (8,095)

Transportation Fund The Transportation Fund pays all driver and maintenance salaries, as well as all material, supply, and equipment costs associated with transporting regular and special education students to and from school and co-curricular field trips and events. Total revenue for the year is estimated to be $1,426,042, a decrease of $50,846 (3.5%) from last year. This is our best estimate of receipt of categorical payments. Total expenditures for the year are estimated to be $1,530,805, a decrease of $407,178 (27%) from last year. Reason for decrease: - Six new buses were purchased outright through the working cash abatement in FY18.

Transportation Year Revenues Expenditures Difference 2019 Projected 1,426,042 1,530,805 (104,762) 2018 1,476,888 1,937,984 (461,095) 2017 1,345,967 1,332,438 13,529 2016 1,443,947 1,256,699 187,247 2015 1,176,567 1,331,072 (154,505) 2014 1,407,935 1,335,716 72,219 2013 1,341,698 1,321,777 19,921

IMRF/SS Fund The Illinois Municipal Retirement Fund pays the support staff pension, social security contributions and teacher Medicare contribution. These contribution rates are established for us and then we are allowed to levy a tax rate to meet our estimated obligations. Currently, our contribution rates are: IMRF (Calendar) 2018 (11.57 %) 2019 (9.59%), Social Security (6.20%); and, Medicare (1.45%). Total revenue for the year is estimated to be $923,210, an increase of $2,938 (<1%) from last year. Total expenditures for the year are estimated to be $892,079, a decrease of $10,822 (1.2%) from last year.

IMRF/Social Security Year Revenues Expenditures Difference 2019 Projected 923,210 892,079 31,131 2018 920,273 902,901 17,371 2017 917,747 919,308 (1,561) 2016 976,073 926,870 49,203 2015 1,007,598 994,010 28,686 2014 979,559 969,866 9,693 2013 982,790 980,120 2,670

Working Cash Fund The Working Cash Fund dollars are generated by the 5 cent levy or through issuing bonds. This year the fund estimated revenues are $187,501 (Levy $141,909) The estimated expenditures/abatement are $750,000. This represents an abatement to the Operation and Maintenance Fund. We issued a 3 year $6,278,645 working cash bond in November 2017

Working Cash Year Beginning Balance Revenues Abatements/Loans Anticipated Balance Projected 2019 6,312,742 187,501 750,000 5,750,243 2018 3,349,927 6,462,540 3,499,724 2017 4,762,464 157,462 1,570,000 2016 1,912,212 5,000,253 2,150,000 4,762,465 2015 3,729,855 139,215 1,950,000 1,911,262 2014 5,134,700 145,155 1,550,000 2013 5,877,660 145,403 900,000 5,123,063

Tort Fund The Tort Fund is taxes that are levied for tort immunity or tort judgment purposes. The Tort Fund is designed to protect the school operating budgets from unexpected legal costs, such as lawsuit settlements. Tort funds can also be used for risk management purposes. This year our anticipated revenues are $563,054. This is a $2,186 increase (<1%) over last year. Our expenditures are anticipated to be $550,607, or an increase of $47,378 (9%).

Tort Year Revenues Expenditures Difference Projected 2019 563,054 550,607 12,447 2018 560,868 503,229 57,639 2017 419,170 396,382 22,789 2016 418,619 400,513 18,106 2015 398,487 444,441 (45,954) 2014 413,070 471,702 (58,632)

Life Safety Fund This fund is established to provide funds needed to address building repair and renovation projects that are deemed to life safety hazards by the District’s Architect and the Illinois State Board of Education. The projects must meet standards for safety and energy conservation. Funding is obtained by two local taxing sources: the regular $.05 levy; and through the issuance of Life Safety Bonds. Total revenue for the year is $1,000 based on interest income. We elected not to levy for Life Safety last year because we believe that we have enough money for Jefferson roof repair banked through previous levies. Total expenditures for the year are estimated to be $2,000. This includes possible architect fees and “what ifs”.

Life Safety Year Beginning Balance Revenues Expenditures Difference Projected 2019 451,282 1,000 2,000 (1,000) 2018 336,482 137,485 22,684 114,800 2017 476,402 133,015 291,500 (158,485) 2016 1,612,871 129,324 1,265,792 1,136,468 2015 359,238 2,030,715 2,246,600 (215,885) 2014 224,930 134,308 2013 83,353 145,403 2,825 142,577

Budget Expenditure % by Fund

End of Year Fund Balances 2013 2014 2015 2016 2017 2018 2019 Projected Education 35,298 63,799 58,589 39,426 246,075 2,557,211 2,551,619 O & M 465,094 451,025 17,205 21,250 25,194 517,535 23,304 Debt Service 52,390 (26,303) 29,245 0.42 (30,484) (31,484) (41,912) Trans 123,619 201,018 46,513 237,685 251,213 562,628 457,865 IMRF 5,405 15,098 76,686 125,889 112,826 118,698 149,817 Working Cash 5,123,062 3,729,855 1,911,262 4,762,465 3,349,926 6,312,742 5,750,244 Tort 42,472 549 18,655 41,444 61,216 118,854 131,301 Life Safety 224,930 359,238 1,611,626 476,402 336,482 451,282 450,282

Local Revenue Sources Property Taxes Our main source of income is property taxes. This year, we approximate that 31% of our revenues (minus CPPRT and Bond and Interest levy) will be collected from property taxes.

Corporate Personal Property Replacement Tax Considered a local revenue Established in 1979 Replaced personal property tax on businesses Tax on the net income of businesses and on invested capital of utilities Proceeds distributed based on relative share of pre-1979 personal property taxes This year we anticipate receiving approximately ($1,383,075) from CPPRT or 16% more than last year (1,190,638).

Interest on Investments Interest rates remain low

Property Taxes/Levy Extension Fund 2012 2013 2014 2015 2016 2017 2018 Ed 7,127,596 6,764,920 6,479,151 5,849,401 5,959,096 6,197,015 6,357,557 O & M 771,382 732,134 701,206 652,834 665,078 691,631 709,549 Debt Service 2,284,836 2,302,914 2,325,426 2,146,051 3,145,365 3,145,040 3,002,018 Trans 370,263 351,424 336,579 313,360 319,237 331,983 340,583 IMRF/SS 615,563 765,021 765,045 825,026 765,026 765,027 765,035 Working Cash 154,276 146,426 140,241 130,567 133,015 138,326 141,910 Tort 370,020 370,012 370,001 500,005 500,022 Life Safety Totals 11,848,455 11,579,285 11,257,901 10,417,807 11,619,837 11,907,369 11,816,657

Evidence Based Funding Consolidation of Grants EBF Formula consolidates and replaces 5 previous grant programs -General State Aid -Special Education Personnel -Special Ed Funding for Children -Special Ed Summer School -English Learner Education Result: MCAT payments that were often received after the close of the fiscal year are now tied into the monthly payment formula previously referenced as GSA. This makes budgeting more predictable and reliable. Gross Base Funding Minimum Guarantees that the amount of EBF revenues are not less than the previous fiscal year Tier funds allot revenue in addition to the Gross Base Funding Minimum. In FY18 the total EBF = $6,213,326 OES is scheduled to receive an additional $238,750 as compared to FY18 for a total of $6,452,076 in FY19

General State Aid/Evidence Based Model 2019 Projected EBF 6,452,076 (22 payments) 2018 EBF 6,213,326 2017 GSA 5,043,505 2016 4,884,268 2015 4,436,809 2014 4,458,023 2013 3,930,150

Education Fund Resources & Trends

Education Fund Revenue Source 2013 2014 2015 2016 2017 2018 2019 Projected State 5,665,848 6,286,685 6,199,553 6,294,914 6,678,841 7,098,438 7,329,989 Federal 1,418,976 1,362,052 1,441,281 1,456,452 1,638,439 1,574,622 1,610,835 Local (Levy/Extension) 6,559,924 6,479,151 6,039,051 5,849,401 5,959,096 6,197,014 6,357,557

Education Fund FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY2019 Expenditure Source FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY2019 Projected Salaries and Benefits 14,818,660 14,823,351 14,800,238 14,494,179 14,549,062 14,470,308 14,489,378 Contracted Labor and Supplies 1,791,054 1,712,256 1,745,163 1,735,386 1,882,694 1,894,600 1,766,586 Capital Outlay and Tuitions 782,219 895,100 1,018,576 1,190,397 1,052,283 1,248,745 1,075,404 Totals 17,391,933 17,430,707 17,563,977 17,419,962 17,484,039 17,613,653 17,331,368

Operations & Maintenance Expenditure Source FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY2018 FY2019 Projected Salaries & Benefits 1,156,496 1,209,449 1,189,910 1,154,671 1,019,438 1,049,325 1,072,633 Contracted Labor and Supplies 177,631 221,900 288,600 197,585 267,700 245,800 333,250 Capital Imprvmts 57,666 261,000 797,989 141,487 131,300 178,176 836,300

Contracted Labor and Supplies Transportation Expenditure Source FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY2018 FY2019 Projected Salaries & Benefits 827,195 845,127 884,051 866,287 891,549 896,795 1,005,705 Contracted Labor and Supplies 379,219 402,040 418,525 276,157 293,625 297,215 290,100 Capital Outlay 115,363 165,000 185,000 114,255 264,519 941,064 235,000

FY 19 Budget Overview The budget is our best estimate of revenues and expenses for FY19 – a guide to our anticipated financial outcomes. The budget meets all Illinois Code provisions The budget reflects anticipated receipts and expenditures in eight funds Overall, receipts are expected to decrease $7,200,970 as compared to FY18. The main reason for the large decrease in revenues is the issuance of the 2017 working cash bond in FY18. Overall expenditures are expected to increase $191,121 as compared to last year (O&M projects factor into the increase).

Scenarios/Reasons for Fund Revenue Increases Third consecutive increase in EAV 2009 317,148,209 2010 318,641,713 2011 308,553,195 2012 292,853,750 2013 280,482,728 2014 264,009,458 2015 261,133,987 2016 266,031,067 2017 276,652,437 2018 283,819,523 State/Local Sources EBF is providing more revenue Previous high - revenue MCAT’s are now included in EBF EAV continues to trend upward EAV lowest since 2006-2007 (248,000,000)

FY 19 Summary Sheet Fund Unaudit begin Balance Unaudit Revenue Unaudit Expend. Rev – Exp Abate Unaudit Proj. Balance Education $2,557,211 $17,305,776 $17,331,368 ($25,592) $2,531,619 O/M $517,535 $997,952 $2,242,183 ($1,244,231) $750,000 $23,304 Debt Ser. ($40,912) $3,003,518 $3,004,518 ($1,000) (41,912) Trans. $562,628 $1,426,042 $1,530,805 ($104,763) $457,865 IMRF/SS $118,685 $923,210 $892,079 $ 31,131 $149,817 Working Cash $6,312,742 $187,501 - (750,000) abate $5,750,244 Tort $118,854 $563,054 $550,607 $12,447 $131,301 Life Safety $451,282 $1,000 $2,000 ($2,000)   $450,282 Total $10,598,026 $24,407,156 $25,490,151 ($1,082,995) $9,452,520

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