Quincy Reporter

Community Consolidated School District 181 Board of Education Finance and Facilities Committee met Sept. 12.

Here are the minutes provided by the committee:

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 5:00 p.m. on Tuesday, September 12, 2023.

Roll Call

Finance and Facilities Committee members present were Sinead Duffy, Asim Aleem, Margaret Kleber, Hector Garcia, Mindy Bradford, Meg Cooper, Ellen Dunlap, Adam East, Mike Duggan, Rich Giltner, Jerry Mejdrich, Lois Mejdrich, and Catie Norton.

Pledge of Allegiance

Mindy Bradford led the Pledge of Allegiance.

Public Comment

No public comments.

Approval of Minutes

Sinead Duffy made a motion to approve the minutes from the June 20, 2023 Finance and Facilities Committee meeting. Asim Aleem seconded the motion. The motion carried.

Introductions

Dr. Garcia welcomed Ms. Mindy Bradford and the new committee members. He thanked them for their time and willingness to serve on the committee.

Celebrations

Ms. Bradford noted the following celebrations:

● Meritorious Budget Award - July 2023

● Summer Projects completed on schedule

● Facilities ready for the first day of school

● Transportation start-up was successful

Informational Items

Budget Year-End

Ms. Bradford presented the unaudited budget year-end for FY23. She noted that the FY23 unaudited total fund balance ended at approximately $50.2MM compared to last year at $45.1MM. The FY23 unaudited operating fund balance ended at approximately $40.0MM compared to the previous year at $39.4MM.

Unaudited Year End - Revenue

The total year-to-date revenue came in favorably at approximately $82.3MM. The revenue included roughly $78.0MM in local sources, $3.0MM in-state sources, and $1.4MM in federal sources.

● Revenue Variance (Account line items > $100,000)

○ Local Revenue

■ $855,200 over in Interest on Investments: Due to higher than anticipated interest rates

■ $543,100 over in CPPRT Revenue: Due to improvement in economic conditions

■ $434,900 over in Property Taxes: Due to some continued early tax receipts

■ $408,000 over in Other Local Revenue: Primarily due to the positive change in the market value of investments

○ State Revenue

■ $189,300 under in Transportation Reimbursement: Due to low revenue in FY23 vs. historical trend data. FY2024 Transportation Claim is higher and in line with historical trends.

○ Federal Revenue

■ $183,200 over in ARP IDEA: Due to timing of receipts. Funds received in early FY2023 related to Summer 2022 work. The FY2023 budget reflected the phasing out of the grant.

■ $51,000 over in ESSER III: Due to timing of receipts. Funds received in early FY2023 related to Summer 2022 work. The FY2023 budget reflected the phasing out of the grant.

■ $172,400 under in IDEA Flow-Through: Due to timing of receipts. A significant reimbursement was received in August 2023 (Recorded in FY2024) for work done in FY2023. That payment was approximately $333,000.

Unaudited Year End - Expenses

Ms. Bradford shared that the total year-to-date expenses were favorable at approximately $77.3 MM. This included roughly $57.4MM in salaries and benefits, $7.0MM in purchased services, and $13.0MM in other expenses.

● Expenses Variance (Account line items > $100,000)

○ Salaries and Benefits Expenses

■ $320,700 under in Certified Salaries

■ $264,100 under in Classified Salaries

■ $2.0MM over in Benefits: Due to an increase in insurance premiums, reserve payment to new insurance co-operative, a significant annual renewal rate increase, and insurance run-out payments

○ Purchased Services Expenses

■ $247,200 under in Professional Services: Due to a less-than-expected need for professional services across the district

■ $221,800 under in Regular Education Transportation: Due to lower-than-expected need for services (including route consolidation due to driver shortage)

■ $128,300 under in Preschool Transportation: Due to lower-than-expected route needs

■ $412,800 over in repairs and maintenance: Due to unanticipated concrete repairs at several schools, fees for furniture storage and moving, and ongoing HVAC maintenance

○ Total Other Expenses

■ $5.2MM under in Capital Improvements: Primarily due to a shift in the timing of the purchase of the district office building and the related renovations

■ $342,500 under in Textbooks: Due to a shift in the timing of textbook purchases (post-COVID)

■ $171,100 under in Private Tuition: Due to a decrease in outplaced students

Committee member Giltner asked about the overage of $543,100 in CPPRT Revenue. Ms. Bradford noted that the CPPRT will come down this year and shared that the state provides the number each year during September. She also said that CPPRT is a separate tax that is assessed.

Mr. Giltner noted that this was the first time he had seen this much volatility.

Ms. Bradford said she would research and find more information on the history.

She also said she would find out more information on investment interest rates.

Mr. Aleem asked if there was a way to estimate transportation costs. Ms. Bradford said that since the District finalizes the budget in the spring, they still need the final transportation costs. Therefore, they can’t complete the numbers for transportation until the summer.

Mr. Gilnter commented on the increase in insurance premiums. Ms. Norton said the most significant expense was for paid claims, not premium costs.

Mr. Giltner asked for a breakdown of the four categories of insurance. He also requested that if an expense is a lot higher or lower and if there is an offsetting revenue, they could add to the information (percentage to budget).

Summer Capital Projects Summary

Mike Duggan, Director of Facilities, shared the summary of the Summer 2023 Capital Projects:

Capital Projects - Summer 2023

Clarendon Hills Middle School

Walk-in Cooler Replacement and Related Kitchen Work

In conjunction with the District Architect and Quest Food Management Services, the 20 plus year-old cooler at CHMS was at the end of its life cycle and needed replacement. The existing cooler was too small and was prone to breakdown. Additionally, this replacement was identified on the Facilities Master Plan. Healy Bender prepared specifications and bidding documents for this project. A public bidding was held on January 26, 2023. The most responsible low bidder was Metropolitan Corp. of Dyer, IN, in the base bid amount of $157,000. The work was completed on schedule and on budget. The life span for this project is 15-20 years.

Elm School MRC and Surrounding Classroom Remodel and The Monroe MRC Remodel

Remodel completed of nine classrooms and offices surrounding the MRC at Elm. These rooms were constructed with temporary metal walls, which were not soundproof. It was determined that they should be replaced while remodeling the MRC. Healy Bender prepared plans and specifications for the remodeling of the classrooms and offices as well as the ceilings of the classrooms and the MRC and painting throughout.

At the same time, the Administration worked with its Sourcewell contractors for flooring, painting, and furnishing of the MRCs at Elm and Monroe (including the Monroe entry and learning commons). A public bidding for the Architect run portion of the work at Elm on March 3, 2023. Lite Construction was the lowest responsible bidder, resulting in a final contract amount of $619,739.00 for that portion of the work. At the same time, the Sourcwell contractor's portion of the work at Elm and Monroe was awarded in the amount of $407,000.00. All work was completed on schedule and approximately $20,000 over budget. The lifespan for these projects is 15 to 20 years.

Monroe and The Lane Door and Hardware Security Upgrade

Monroe and The Lane had some original hardware in the buildings from the 1920s and the 1950s when the schools were respectively constructed. These two schools and Prospect were the only District schools left to require this security upgrade. Healy Bender prepared specs and bidding documents for this project. A public bidding was held on January 26, 2023. The most responsible low-bidder was R.L. Sohol General Contractors, Inc. of Plainfield, IL, with a base bid of $565,000.00. All steel doors and related hardware have been installed and painted. Due to delays in obtaining the wood doors at both locations, the installation of the doors and hardware will be completed during the week of November 20, 2023, when no students are in the buildings. It is expected the project will be completed on budget. The lifespan for these projects is 50+ years.

Oak School Roof Rehabilitation

This section of the Oak roof was nearly 20 years old and at the end of its warranty. The rehabilitation will extend the warranty for an additional 20 years. Healy Bender prepared specifications and bidding documents for this project, and a public bidding was held on January 26, 2023. The lowest responsible bidder was Malcor Roofing Inc. of Saint Charles, IL, in the amount of $228,000.00. Including change orders, this project was $1,800 under budget and was completed and inspected on time. In addition, funds received from the FY23 ISBE School Maintenance Grant for $50,000 were used to defray the cost of this project.

The Lane and Madison School - Playground Replacement

Pursuant to an initiative to replace the older playground equipment in the district, a great deal of research was completed into possible replacement structures. It was determined to seek equipment that met national fitness standards, and which was inclusive and fun. The administration worked with the principals and provided the plans to the PTOs along with a menu of items that they could contribute that were from the same manufacturers with the exact specifications. The PTO generously donated complimentary pieces that have enhanced the basic layout. By utilizing the District’s cooperative purchasing agreement, the following work was completed:

● Demolition of existing structures, installation of new and engineered wood fiber $397,000

● Concrete $95,000

● Poured in Place, surfacing $97,000

● Excavation and grading $40,000

● Total $629,000

Mr. Duggan said that both projects will need to be fully completed next summer, but they could open for the start of school. The projects ended up being $79,000 over budget due to the required earthmoving and hauling costs associated with the restoration of the old playground area at The Lane and extensive grading and concrete curbing, which was needed to provide for the “poured-in-place” surface and to maintain drainage across the property. The lifespan for these projects is 15-20 years.

The Lane School Flooring Replacement

Utilizing the cooperative purchasing agreement, Consolidated Flooring of Chicago was awarded a contract for the installation of new LVT flooring and walk-off carpeting in the halls and classrooms of The Lane School in the amount of $480,000. The project was completed on time and within the budgeted amount. The life span for this project is 30+ years.

Board member Duffy thanked Mr. Duggan and his team for all the hard work. She asked that the District provide before and after pictures of the projects when presenting.

District Office Update

Ms. Bradford provided an update on the District Office. She shared the history and the plan to ultimately close on a property at 133 Ogden Ave., Hinsdale, IL A proposed agreement was reached on September 8, 2023, between the parties with respect to the waiver of the first-floor tenants' 5-year option for a lease extension. The District’s waiver of Due Diligence is contingent upon the agreement being entered into with the negotiated terms. The plan is to close on or before 14 days from the expiration of the due diligence period (unless mutually agreed otherwise).

Mr. Giltner asked what the budget was for renovation. Mr. Duggan said the District has budgeted approximately $1.3 million for renovation, but the building is in “good shape.” The interior will need renovation, but the bathrooms, elevators, and roof are in good condition.

Mr. Giltner asked that the District provide a cost comparison for renovation (breakeven and rental). Per a question, Ms. Bradford confirmed that the District has reserve funds to use for the renovation.

Items for Recommendation

Monthly Financials

Ms. Bradford shared the following information related to the August 2023 Monthly Financial Reports:

● Operating funds Year to Date:

○ $45.1 MM: trending favorably

■ Includes relief to the taxpayers

○ Revenue $6.5 MM: trending favorably

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

○ Expenses: $5.3 MM: trending favorably

The committee agreed to bring the Monthly Financials to the Board meeting for approval.

Future Agenda Items

● Quarterly Financials

● Preliminary Tax Levy Update

● Discussion of Financing for Full-Day Kindergarten

● Fund Balance Strategy: Phase One

● Facilities Master Plan Recommendations

● Resolution - Disposition of Surplus Property

● School Maintenance Grant

Adjournment

Sinead Duffy motioned to adjourn at 6:03 p.m. Asim Aleem seconded the motion. The motion carried.

https://go.boarddocs.com/il/hccsdil/Board.nsf/files/CWSJK34D7EA8/$file/2023_09_12_Fin.%20and%20Fac.%20Com.%20Mtg.%20Min.%20.pdf