Quincy Reporter

Community Consolidated School District 181 Board of Education Finance and Facilities Committee met April 11.

Here are the minutes provided by the board:

The Board of Education Finance and Facilities Committee meeting of Community Consolidated School District 181, DuPage and Cook Counties, Illinois, was called to order by Board Member and Finance Committee Chair Sinead Duffy at 5:03 p.m. on Tuesday, April 11, 2023.

Roll Call

Finance and Facilities Committee members present were: Sinead Duffy, Asim Aleem, Margaret Kleber, Michael Martin, Rick Engstrom, Mike Duggan, Jerry Mejdrich, Lois Mejdrich, and Catie Norton.

Pledge of Allegiance

Richard Engstrom led the Pledge of Allegiance.

Public Comment

No public comments.

Approval of Minutes

Sinead Duffy made a motion to approve the minutes from the February 7, 2023, Finance and Facilities Committee meeting. Asim Aleem seconded the motion. The motion carried.

Celebrations and Reminders

Mr. Duggan highlighted the following:

● Arunas Svinkunas, Deliver Personnel, is retiring on May 1, 2023.

● Danial Vava is replacing Arunas.

Reminder

● Tentative Budget in May with approval in June

Quarterly Financials Report

Operating Funds Year to Date:

● $31.7 MM: Trending favorably

○ Includes relief to the taxpayers

● Revenue $40.4 MM: Trending favorably

○ Note: Due to the timing of tax payments, revenue will be less than budget prior to audit adjustment

● Expenses $44.8 MM: Trending favorably

D181 Business and Operations Highlights

Mr. Engstrom shared the following highlights:

Profile Score

Financial Profile Score

● Pursuant to the authority provided by Section 1A-8 of the School Code, the Illinois State Board of Education developed this score to help monitor the finances of a school district.

● This score includes five indicators that are individually scored and weighted in order to arrive at a Total Profile Score.

● The indicators include Fund Balance to Revenue Ratio, Expenditure to Revenue Ratio, Days Cash on Hand, Percent of Short-Term Borrowing Ability Remaining, and Percent of Long-Term Debt Margin Remaining.

● Each indicator is calculated, and the results are slotted into categories of four, three, two, or one, with four being the highest and best category possible.

● The category designation includes Financial Recognition (3.54-4.0), Financial Review (3.08-3.53), Financial Warning (2.62-3.07), and Financial Watch (1.0-2.61).

● District 181 has done an exemplary job of maintaining Financial Recognition status over the last five years.

Fund Balance to Revenue Ratio:

● The Fund Balance to Revenue Ratio reflects the impact of additional revenues on the existing fund balances of the district. Fund Balances, to a district, can be viewed as savings or checking account balances to the average citizen. A ratio of .25 or greater scores 4, between .25 and .10 scores 3, between .10 and zero scores 2, and a negative fund balance to revenue ratio scores 1.

Expenditure to Revenue Ratio:

● The Expenditure to Revenue Ratio represents how much the school district spends for every dollar they bring in as revenue. Equal to or less than $1.00 has a score of 4, between $1.00 and $1.10 scores 3, between $1.10 and $1.20 scores 2, and spending of greater than $1.20 scores 1.

● One-time expenditures made by the district, including construction costs, are included in this ratio. Upon review of the remaining fund balance when deficit spending occurs, the indicator score may be adjusted.

Days Cash on Hand:

● Days Cash on Hand reflects the number of days a school district could pay its average bills without additional revenues. 180 days or greater scores 4, between 90 and 180 scores 3, between 30 and 90 scores 2, and less than 30 days of cash on hand scores 1% of Short-Term Borrowing Max. Remaining Based on Tax Anticipation Warrants, this represents how much short-term debt the district may incur

The % of Long-Term Debt Margin remaining represents how much long-term debt the district may incur.

Meritorious Budget Award

● The District received the ASBO International Meritorious Budget Award for the second year in a row for FY 2023.

● The District’s budget document contains excellent spreadsheets, charts, and graphs to help the reader fully grasp the data presented while providing abundant data to meet varied readers' needs.

● Overall, the award commends the district’s commitment to excellence in best budget presentation practices in school districts.

Fiscal Control

Over the last three years, D181 made it their fiscal responsibility to continuously review opportunities to control revenue and expenses without affecting any parts of the learning environment. During that time frame, the District has been able to either increase revenue or decrease expenses by approximately $5MM. The District has raised revenue through grant utilization, contributions, incentive programs, facility usage fees, and the District’s investment strategy. Additionally, the District has decreased expenses by paying off callable bonds, managing projects in-house, utilizing cooperative purchasing, and thorough review of all contracts/agreements.

Committee members noted the importance of these accomplishments and suggested sharing these awards with the community.

Action Items

Resolution Designating the Existence of Safety Hazards

Engstrom shared that Illinois School Code requires the Board of Education to adopt a resolution reaffirming that the conditions still exist that initially qualify each location as a serious safety hazard.

In 2017, a thorough review of the existing 12 approved Illinois Department of Transportation (IDOT) Serious Safety Hazards was conducted. There have been no changes in the existing safety hazards.

The committee agreed to bring this item to the Board meeting for approval.

Application for Waiver or Modification of State Board Rules and/or School Code Mandates for the ASA Mr. Engstrom shared that Illinois School Code Section 10-17 (105 ILCS 5/10-17) requires school districts/joint agreements to complete the Annual Statement of Affairs (ASA) and publish it in a local newspaper each year. The ASA contains information from the Annual Financial Report (AFR), salary, and demographic information. The Illinois State Board of Education allows districts to apply for a waiver or modification of school code to avoid posting the required elements of the ASA in a local newspaper. If the state accepts the application, the district will save $2,500 per year, excluding increases in the cost to publish it in the newspaper and staff time spent preparing the data.

The committee agreed to bring this item to the Board meeting for approval.

Vendor Contract Approval

Transportation Request for Proposal

Bid proposals were opened on April 6, 2023. The lowest responsible bidder was First Student.

Bid highlights:

● GPS software system used to communicate with families of the district

● Drivers that only drive for the District

● A dedicated communication coordinator

● Two dedicated permanent substitute bus drivers

● Contractor training of 4 District employees per year for the Driver Instruction Program

● The bus driver will take daily attendance of students on board and provide weekly ridership reports

● The contractor will be charged a 50% penalty if more than 10 minutes late without proper notification

● If no service of a scheduled route, the district will be credited the cost.

● Development of an incentive program for those assigned to the District

Mr. Engstrom noted that there would be an 18.5% increase in the first year, but the next two years have a 3.5% increase.

The committee agreed to bring this item to the Board meeting for approval.

Middle School Yearbook Request for Proposal

Engstrom shared that bid proposals were opened on April 3, 2023. The lowest responsible bidder was Herff Jones.

Bid highlights:

● A web-based e-design system with resources and supports throughout the design process

● Customizable layout with designs to suit any situation

● Resources and support for the educators leading the process, with curricular lessons to help teach students relevant life skills

● High-quality, color yearbooks with image enhancement options

● Timely delivery and support during distribution

The committee agreed to bring this item to the Board meeting for approval.

Electric Supply Agreement between CCSD 181 and Direct Energy (Century Energy Solutions, LLC) Mr. Duggan shared the following:

Highlights:

● Supply of electricity to the District

● The current 15-month agreement expires in June 2024

○ Fixed agreement at $0.08490/kWh

○ Based upon 6,000,000 kWh annual usage

● The proposed extension of the agreement starting June 2024

○ 3-year term

○ The ceiling of $0.0615/kwh

○ Annual Savings - $140,000

Following a brief discussion, the committee recommended that the Administration contact other electric brokers. This item will be brought back to the next meeting.

Monthly Financials

Mr. Engstrom shared the following information:

● Operating funds Year to Date:

○ $31.7 MM: trending favorably

■ Includes relief to the taxpayers

○ Revenue $40.4 MM: trending favorably

■ Due to the timing of tax payments, revenue will be less than budgeted

○ Expenses: $44.8 MM: trending favorably

The committee agreed to bring this item to the Board meeting for approval.

Future Agenda Items

● Budget Presentation

● Cash Flow Outlook/Investment Update

● Approval of the Tentative Budget for Public Display

● Resolution Approving Treasurer's Bonds

● Resolution Appointing School Treasurer and Fixing Treasurer’s Compensation

Adjournment

Sinead Duffy motioned to adjourn at 6:04 p.m. Asim Aleem seconded the motion. The motion carried.

https://go.boarddocs.com/il/hccsdil/Board.nsf/files/CRGRSL6F67CC/$file/2023_04_11_Fin.%20and%20Fac.%20Com.%20Mtg.%20Min..pdf