Quincy Reporter

Community Consolidated School District 181 Board of Education Finance and Facilities Committee met Oct. 24.

Here are the minutes provided by the board:

Call of Meeting

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, October 24, 2023.

Roll Call

Finance and Facilities Committee members present were Sinead Duffy, Asim Aleem, Margaret Kleber (remote), Hector Garcia, Mindy Bradford, Mike Duggan, Meg Cooper, Ellen Dunlap, Adam East, Mike Duggan, Nate Lucht, 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 September 12, 2023, Finance and Facilities Committee meeting. Asim Aleem seconded the motion. The motion carried.

Celebrations

Ms. Bradford noted the following celebrations:

● Closed on District Office Building

● Offering an Activities Bus and the Middle Schools

Reminders:

● 2022 Cook County - Extension Received: October 5, 2023

Informational Items

Quarterly Financial Reports

Ms. Bradford presented the Quarterly Financial Reports. She noted the following:

Operating Funds Year to Date:

● Ending Fund Balance $58.6 MM: Trending favorably

● Revenue $29.8 MM: Trending favorably

● Expenses $12.0 MM: Trending favorably

Preliminary Tax Levy Memo

Ms. Bradford shared an update on the preliminary Tax Levy numbers as of October 1. She noted that the State of Illinois Property Tax Extension Limitation Law (PTELL) is designed to limit the increases in property tax extension (total taxes billed) for non-home rule taxing districts. Although the law is commonly referred to as the "tax cap," the use of this phrase can be misleading, she explained. The PTELL does not "cap" individual property tax bills or individual property assessments. Instead, the PTELL allows a taxing district to receive a limited inflationary increase in tax extensions on existing property plus an additional amount for new construction, newly annexed areas, and recovered TIF valuations. The limit slows the growth of revenues to taxing districts when property values and assessments are increasing faster than the inflation rate.

As a whole, property owners have some protection from tax bills that increase only because the market value of their property is rising rapidly. The "limiting rate" is calculated for each taxing district by the county clerk to implement PTELL. The sum of a district’s rates extended for those funds subject to the PTELL cannot exceed this limiting rate. After calculating preliminary rates for the funds, the county clerk will compare the sum of these rates to the limiting rate. If this sum exceeds the limiting rate, the county clerk will reduce each rate proportionally unless instructed by a taxing district to reduce them differently.

Ms. Bradford said that as of October 19, 2023, the District received Preliminary Estimated Equalized Assessed Values (EAV) from DuPage County (which includes Downers Grove and York Townships), which makes up 90.5% of the district’s EAV. She also shared that, unfortunately, Cook County values are not available. Therefore, estimates will be used based on past trends. Based on estimates received from DuPage County and past trends for Cook County, the projected Equalized Assessed Values for the tax year 2023 is estimated to be $3,074,060,962, or an increase of 4.9% from last year’s EAV of $2,929,710,303.

Ms. Bradford said that Cook County and DuPage County have a projected combined new construction decrease from $29,324,143 to $24,860,151 or -15.2%.

She also said the district can project the limiting rate and the extension limit based on the following factors:

● Calculating the Adjusted Extension Base from the previous year’s extension (without debt services) and knowing the CPI of 5.0%

● Projected EAV and New Property (see above)

● Projected Limiting Rate = 2.47%

● Projected Extension Limit = $76,408,544

These numbers are based on preliminary estimated Equalized Assessed Values and estimated new construction amounts. She said she would update the calculations once further information is received from all townships. She did clarify that those numbers are still preliminary. The county does not have all tax exceptions and appeals determined when taxing bodies’ levies are filed on the last Tuesday in December (December 26th). She said it is good practice to ask for slightly more than the estimated extension limit. This allows the district to capture the amount they should receive if any of the estimates change. However, being a PTELL (tax-capped) district, the district will only receive the final extension limit. The projected numbers will be updated in November once the District gets the updated Equalized Assessed Values and New Construction Values. This does not include an abatement amount. She said the amount will be determined in February and filed with the county.

Mr. Mejdrich commented on the District’s history related to the levy.

Full-Day Kindergarten Update

Mike Duggan, Director of Facilities, shared an update on the status of full-day kindergarten from a facilities standpoint.

Mr. Duggan noted that after considering the possibility of full-day kindergarten at the start of the year, the State of Illinois approved a change to the school code to mandate that all school districts offer full-day kindergarten. After it was evident that the State was moving in this direction, the District began to plan for an August 2025 implementation. The framework being followed in the creation of these plans has been to concentrate on the following:

● Plan and rationale

○ Construction decisions based on enrollment trends from the Demographer’s report

○ Location and designs of additions are determined based on existing conditions at each site.

○ Mitigate disruption to existing learning environments

○ Deadline for completion - August 2025

● Timeline

○ Fall/Winter 2023/2024 - Permitting, bidding, and awarding of contracts

○ Summer 2024 Construction - mechanical, electrical, and plumbing systems and interior finishes to the extent possible

○ Summer 2025 - Complete construction, site work, and punch list items. Occupancy August 2025

● Cost Estimates

○ Original = $27.1 MM ($26 MM - FDK + $1.1 MM Oak Renovation)

○ Initial Design Phase = $26.4 MM (Including FDK and Oak Renovation)

○ Costs will be refined at bidding

Committee members commented on the enrollment trends and how they have shifted over the years.

The committee discussed the designs and how they were based on the demographer’s report. They also noted that they will know more about the costs after the bids come in.

Ms. Bradford and Mr. Duggan discussed how the bids may be packaged.

Ms. Cooper asked that the District clarify that the District will be ahead of the Illinois Mandate of requiring Districts to have implemented full-day kindergarten by 2027.

Mr. Lucht commented on the possible changes related to the five-year financial projections following the completion of the District Office and the implementation of full-day kindergarten.

Items for Recommendation

Monthly Financials

Ms. Bradford shared the following information related to the August 2023 Monthly Financial Reports: September Operating Funds Year to Date:

● $58.6 MM: Trending favorably

○ Includes relief to the taxpayers and purchase of district office building

● Revenue $29.8 MM: Trending favorably

● Expenses $12.0 MM: Trending favorably

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

Facilities Master Plan Recommendations

Mr. Duggan shared that the facilities Master Plan was approved by the Board of Education in May 2018 based upon the Facilities Condition Assessment Report (FCAR - 2015- Wight and Company), Educational Adequacy Analysis (Healy Bender), Health Life Safety Surveys (Annually conducted by the ROE), Staff Surveys, Anecdotal

Feedback and School tours by committee members and the District Architect. The 10-year project plans are revised annually after completing that year’s summer projects. The timing of some projects may be moved due to changes in circumstances that would necessitate completing the project sooner or later than planned. Pursuant to the Facilities Master Plan and the needs of the District, the following capital projects are being recommended for implementation during the Summer of 2024.

District Architect Projects:

The District Architect oversees these projects. The Architect prepares all plans, specifications, and bidding documents. Additionally, the Architect makes site visits, prepares and submits all permits and payment requests, and reviews all vendor‘s supporting documents.

Total Cost Estimate

● HMS

○ Settlement Cracks - $59,500

● Madison

○ MRC Remodel - $297,500

● Prospect

○ Resurface North Parking Lot - $302,260

● The Lane

○ Resurface playlot - $119,000

Buying Cooperative / In-House Projects:

Cooperative purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments. District 181 is a member of Sourcewell, a national cooperative purchasing agency. Sourcewell streamlines the procurement process by developing RFPs for national, competitive solicitations that meet or exceed local requirements. These projects are overseen by the Facilities Department, thereby saving the District the soft costs associated with Architect projects.

Total Cost Estimate

● Monroe

○ Moisture Mitigation and Flooring Replacement - $500,000

○ Playground poured in place surfacing being added - $60,000

● Prospect

○ Playground replacement - $300,000

● Madison

○ Playground poured in place surfacing being added to complete the playground - $130,000

● The Lane

○ LED Retrofit and Replacement - $65,000

● Walker

○ Playground replacement - $300,000

● The Lane

○ Playground poured in place surfacing and grading being added to complete this project - $200,000

The committee agreed to bring the Facilities Master Plan Recommendations / Summer 2024 Capital Projects to the Board meeting for approval.

Resolution - Disposition of Surplus Property (Furniture and Equipment)

Mr. Duggan shared that the District is seeking the approval of a resolution authorizing the sale or other disposition of surplus or obsolete property. Each year, the District donates or otherwise disposes of obsolete surplus property. This year, most of this property was donated to SCARCE, a nonprofit organization dedicated to creating sustainable communities. Most donations to SCARCE were textbooks and obsolete equipment. The balance of the property was furniture and other items which were no longer usable.

The committee agreed to bring the Resolution - Disposition of Surplus Property (Furniture and Equipment) to the Board meeting for approval.

Resolution - Disposition of Surplus Property (Electronic Equipment)

Ms. Bradford shared the District has surplus Chromebooks, iPads, MacBooks, network equipment, battery backup units, computer carts, and other miscellaneous technology equipment that has been replaced with newer equipment or is otherwise no longer needed.

The list of devices to resell or recycle includes approximately 600 Chromebooks, 1500 iPads, 550 Macs, and 115 projectors, among other miscellaneous hardware (about 3,000 assets in total). The Technology Department has collected and inventoried all equipment to be re-sold. They solicited proposals for resale of the surplus equipment from different vendors. Vendors are required to be 2013:R2 certified and to provide a certificate of secure destruction of any data on storage media of any equipment. Nine vendors responded with proposals for the equipment.

● Upward Assets - $264,032

● COM2 Recycling - $78,442

● Devine Owens - $25,000

● Tek Trade - $216,000

● Providence Capital - $257,585

● TCG - $160,955

● Coretek LLC - $303,313

● Green Wave - $175,649

● Diamond Assets - $258,120

● Motor City Computer - $173,053

The administration is recommending the surplus equipment be resold through Coretek LLC as they had the highest estimated bid. Ms. Bradford noted that upon evaluation of the physical inventory, the vendor may adjust their bid to a lower amount based on the physical condition of the equipment. Ms. Bradford shared that the District worked with Coretek on last year’s disposition of surplus technology equipment, and they were a great partner in this area. The District estimates a return on the surplus equipment of just over $300,000.

Committee members engaged in a discussion on the replacement cycle and process related to the disposition of electronic equipment. Ms. Bradford said we would provide the answers to these questions and report back to the committee.

The committee agreed to bring the Resolution - Disposition of Surplus Property (Electronic Equipment) to the Board meeting for approval. Ms. Bradford clarified that she would provide the committee with the answers to their questions.

School Maintenance Grant

Ms. Bradford shared that the School Maintenance Grant is a dollar-for-dollar state matching grant program providing awards up to $50,000 to grantees exclusively for the maintenance or upkeep of buildings or structures for educational purposes. There is no limit to the project cost; however, grant awards shall not exceed $50,000.00 per award, and applicants must provide a match from local funds equal to the grant amount requested. All of the steps required to submit a grant application formally have been completed, except for the execution of the grant application by the President of the Board of Education, she said.

Ms. Bradford said that If awarded, grant funds would be applied to the playground replacement at Walker School, a project that is included in the district’s long-term facilities plan. The playground is original to the building. A new playground would be more ADA accessible, would add sensory learning areas, and would meet updated safety standards for students.

The committee agreed to bring the School Maintenance Grant to the Board meeting for approval.

Future Agenda Items

● Full-Day Kindergarten Financing Update

● Tax Levy Presentation

● Fund Balance Strategy Phase One

● HCHTA Contract Discussion

● Monthly Financials

Adjournment

Sinead Duffy motioned to adjourn at 6:10 p.m. Asim Aleem seconded the motion. The motion carried.

https://go.boarddocs.com/il/hccsdil/Board.nsf/files/CX8QDR6872E0/$file/2023_10_24_Fin.%20and%20Fac.%20Com.%20Mtg.%20Min..pdf