Quincy Reporter

Community Unit School District 200 Board of Education met Jan. 22.

Here are the minutes provided by the board:

The Committee of the Whole meeting for the month of January of the Board of Education of Community Unit School District 200, DuPage County, Illinois, was called to order at the School Service Center, 130 W Park Ave, Wheaton, IL, by Board Vice President Julie Kulovits, on Wednesday, January 22, 2025, at 7:00 PM.

ROLL CALL

Upon the roll being called, the following were present:

Board Members: Ms. Julie Kulovits

Mr. Dave Long

Ms. Angela Blatner

Mr. Erik Hjerpe

Mr. Brad Paulsen

Mr. John Rutledge

Absent: Mr. Rob Hanlon

Also in Attendance: Dr. Jeff Schuler, Superintendent

Ms. Alyssa Barry

Mr. Matt Biscan

Ms. Melissa Murphy

Dr. Brian O’Keeffe

Dr. Chris Silagi

Mr. Jason Spencer

PLEDGE OF ALLEGIANCE

Board Secretary Dave Long led the Board in the Pledge of Allegiance.

SUSPEND THE RULES AND ADJOURN TO A WORKSHOP SETTING

MOTION

Member Paulsen moved, Member Rutledge seconded to suspend the rules and adjourn to a workshop setting. Upon a roll call vote being taken the vote was: AYE 6, NAY 0. The motion carried 6-0.

Business Services

Middle School Capital Projects

Mr. Michael Dolter of Perkins & Will, the lead architect for the middle school capital projects, provided the Board of Education with an update on the projects. The PowerPoint presentation included information on the following:

● Schedule Update - Project Phases

o Pre-Design/Programming, Schematic Design, Design Development, Contract Documents, Bidding/Negotiation, Construction

● A 3-Issuance Approach

o Issuance 1: Enabling Work (Monroe/Franklin), Monroe Standard Classrooms; Bid - Feb/Mar 2025, Built - Summer 2025

o Issuance 2: Building Additions & Associated Projects All Three Schools; Bid - May/June 2025, Built - Summer 2025-26

o Issuance 3: Bulk of Work All Three Schools; Bid - Oct/Nov 2025, Built - Summer 2026-27; (*Issuance 3 may be broken out or extended if needed)

● Project Timeline - Design, Bidding, BOE Approval, Permitting, Construction, Project Closeout, Design Budget Review for Issuances 1, 2-A/B, and 3 from 2024 through 2028 o Issuance 1: Enabling Work/Monroe; Board Action - March 2025

o Issuance 2A/B: Building Additions; Board Action - May & June 2025, Nov/Dec 2025

o Issuance 3: Bulk of Work

● Renovation Scope Example

o Monroe, Edison, Franklin for Summer 1 (2025), 2 (2026) and 3 (2027)

o 1) Prioritize Sequential/Linked Projects, 2) Each School will begin the Academic Year with No Loss of Classrooms, 3) Look to Complete Backfill Projects in Line with Additions; 4) Heavy Renovation Work & Additions Summer Work

● Additional Engagement

o Internal Groups (Executive Team - Weekly Calls, Building Teams - Edison /Franklin/ Monroe, Science Lab Classroom User Group, General Classrooms User Group, Building Operations Group, Visual Arts & Electives User Group, Library Learning Centers User Group, Performing Arts (Music/Theatre) User Groups, Essentials Program User Group, P.E./Athletics User Group, Student Services/Wellness User Group)

o External Groups (City of Wheaton - Engineering, City of Wheaton - Planning, Regional Office of Education, Wheaton Park District, Wheaton Fire Department, Wheaton Police Department, DuPage County)

● Design Update - Plan Development Examples

o Monroe Middle School: Concept Design - Highlighted Improvements: 1) Locker Room Addition & Renovation, 2) South Entry Expansion

o Monroe Middle School: Planning Updates - Highlighted Improvements: 1) Locker Room Interior Renovation (Eliminates building addition; Takes advantage of existing interior space); 2) South Entry Reconfiguration (Eliminates building addition, Improves internal traffic flow)

o Edison Middle School - Proposed Second Floor Improvement Plan - Highlighted Improvements: 1) Performing Arts/Music Practice & Ensemble Room

Reconfiguration/Expansion

o Edison Middle School - Proposed Second Floor Improvement Plan - Highlighted Improvements: 1) Performing Arts/Music Practice & Ensemble Room Renovation (Eliminates building addition, takes advantage of underutilized mechanical space)

There was additional information/comments on the following:

● A reminder this is a continuation of the discussion that will take place over several meetings. The Board will be given an update on the timeline - when action is expected to come in front of the Board, when the work will actually be done, and will also provide an update on the high-level design changes.

● Provided a synopsis of some planning work being done to look for some additional efficiencies within the plans in some targeted areas.

● The broader design presentation will come to the Board in February.

● Each phase of the design process has a checkpoint to ensure the design is going in the right direction from all of the drivers developed from the District side, and that the project is in a good financial position overall.

● We are currently in the contract document stage with some of the project (for issuance one), in the design development phase with some of the project, and have wrapped up the schematic design with the other portions of the project.

● From an individual classroom standpoint, the building systems at Monroe are in good enough shape and will be updated as part of the first issuance.

● The enabling work in issuance one is to allow for the projects in issuance two, expediting the work upfront.

● The current plan is for the work to be completed in summer 2027. However, issuance three could be broken out or extended into multiple packages, based on timing, scope, or budget.

● It is an aggressive schedule overall.

● Perkins & Will is working with the District to develop prototype classrooms in Monroe so that both furniture and technology approaches can be tested. A districtwide middle school classroom user group has provided feedback on current and future conditions and will serve as a sounding board for how the prototype classrooms are working.

● The goal is to distribute feedback and ideas to the first classrooms that are done at Monroe, gain some input, and further refine and be able to implement and shape future classrooms in issuance three.

● Issuance two is divided into two sub-issuances. The early package (2A) covers the building additions (building infrastructure) and can be bid in time for an early summer start. The goal of issuance two is to get the buildings enclosed before winter, avoiding exposure to winter conditions.

● Issuance 2B is scheduled to come a month later, and that will be the rest of the building additions.

● There is more complexity at Monroe and Franklin for the building additions as part of issuance two. Edison work/addition - focus on that work in the spring so students can be outside for classes (involves taking down their main gym, doing the expansion work, and having the least impact on education in the building when possible).

● The goal is to complete phase two by the beginning of the 2026-27 school year and phase three by the end of summer 2027.

● Heavy construction will occur during the summer of 2026, including completing all new spaces at all three buildings and a heavy renovation across all three schools. Putting this on the Board’s radar, and we will have to look carefully to ensure there is enough time in the summer of 2026 to complete projects and not carry over work into the school year. There may be a need to revisit the start date of the summer of 2026-27 school year.

● Internal user groups are organized by school and District; we will continue to receive feedback on designs throughout the process.

● Design decisions have been made to simplify the project and avoid unnecessary extensive work. We worked with the building teams to understand the impact, ensure we are on the right path with these approaches, and improve the educational environments for students as much as possible. The presentation highlighted the plan development examples.

There were questions and/or additional discussion on the following:

● Conversations with the ROE (Regional Office of Education) and the City of Wheaton on stormwater, development, and zoning processes. No red flags at this point. Will also have conversations on the timeline/processes with Wheaton Police and Fire on the projects.

● Conversations with the Wheaton Park District regarding Edison and the extension planned for the gym as it relates to the lease agreement and the basketball courts, as well as facilities usage. A formal action will be required to ask the park district to break that lease agreement based on the gym expansion.

● Outdoor basketball courts at Edison - Due to expansion, there will still be basketball courts, but they will not be the size of the current space. From a school perspective, there will still be court space for students.

● Defining and distinguishing between the concept design, schematic design, design development, and contract document phases.

● Clarify that the 3-issuance approach for this is for the issuance of the bid packages and is separate from the debt issuances.

● City approvals regarding the schedule and drop-off dates; ROE contact for approval of permit applications.

● “As of rights” on the sites - what is allowed within the zoning ordinance on any site; requests for relief of those requirements if needed (due to the tightness of the sites or reduction in parking).

● Appreciation for all of the work involved in the accelerated schedule.

● Based on the proposed schedule, Monroe’s work could potentially be completed by the end of summer 2026. Also, the construction of new spaces has been accelerated—the goal is for the new performing arts spaces to be occupied by the 26-27 school year.

● Sherman Dergis (SD) work for summer 2026: We might consider that work in the context of this major work and tweak the SD work targeted.

● Summer school: At least one of the middle schools houses the ESY (extended school year) program, which plans to relocate from Monroe to Bower for the summer. The parents and community will be notified. Wheaton Park District is also aware of the construction plans and will relocate some summer camp programs that occupy the spaces.

● The impact of planning updates and elimination of small expansions/additions on the project cost/budget. Will know more when we get to the full SD budget. The goal was to gain efficiencies.

● The location of Monroe teacher’s lounge and multipurpose flex space based on the planning updates. Leveling out the floor in the area at Monroe.

● The challenge of future-proofing the work and uncertainty of what educational environments will look like in twenty years. Any concern with displacing flexible space for purpose-built space? Noted the sheer size of the multipurpose space at Monroe; redefining the feel of that space.

● Edison space and using an acoustic consultant for the performing arts and music spaces who will provide feedback.

● The aim is to see some efficiency gain by improving mechanicals in these buildings, therefore decreasing operating costs. Developing an energy model with engineers to give a reasonable understanding of what the energy usage of the existing stock and the new stock will look like.

● Monroe space - do not like the idea of cutting the multipurpose space; removing the lockers that act as a sound barrier. Location of lockers; number of lockers needed vs. currently have at all buildings; lockers grouped by grade-level vs. co-horting; reliance on lockers has decreased overall; sound buffers at Monroe between the cafeteria and academic spaces; sound buffers for staff/teachers lounge.

● Monroe entrances: A new entrance is located north of the auditorium, and Essentials students will use the front entrance.

● The Monroe commons space is not cut in half; it will have more square footage than the Hubble commons space.

● Noise level in cafeteria/lunchroom spaces: Is there a way to dampen the sound in the lunchrooms? We are trying to increase the volume in the spaces as much as possible and look at materials in there as well.

● Ensuring plans are good for students now and in the future.

● Appreciation for how many moving parts there are.

● A communication plan for stakeholder groups and the broader student and parent groups will keep them informed about the progress and how these plans are adjusted. Early and frequent communication is critical, as is receiving feedback. Dr. Schuler and Dr. O’Keeffe are meeting with each of the three middle schools at their faculty meetings to update staff. They have also updated the maintenance/custodial staff at the three buildings to ensure they are regular points of contact.

● The actual construction inside the buildings is compressed into a couple of summers. When school is out for the summer, the kids leave, and the contractors go in immediately to begin work, ensuring classrooms are packed up efficiently.

● On the community side of communication, the site used during the referendum will be used to communicate with the broader community as we progress through the projects. As we enter the deeper phases of construction, there will be a regular communication cadence.

● Monroe - the potential to repurpose the multipurpose space lost in the front of the building; prototype classrooms as it relates to instructional technology and furniture with teachers being able to sign up to teach in those spaces to evaluate and see what challenges may arise and provide feedback.

● Monroe courtyard outside of the science labs - developing that space? Currently houses an Eagle Scout project; opportunities for programming within that courtyard.

● Monroe is trying to get some natural light in those inboard classrooms. A two-pronged approach—a skylight and solar tube approach—is pending a cost review. Other types of lighting are also being considered. The scope is to find the least impactful solution with the highest impact on the classroom. Getting some natural light into the classrooms should be high on the priority list.

Five-Year Financial Forecast

The Business Office presented the first iteration of the five-year financial forecast to the Board of Education. Dr. Brian O’Keeffe provided a PowerPoint presentation on the Five-Year Financial Forecast that included information on the following:

● Financial Planning Analytics

o A powerful financial planning tool used for the development of a multi-year financial plan, scenario comparisons and “what-if” analysis, detailed budget and performance analysis, budget prep and upload to accounting system, budget distribution and stakeholder reporting

● Financial Forecasting

o What is a Five Year Financial Forecast? A comprehensive, interactive planning process that can be updated to assist CUSD 200 in making important financial decisions as assumptions change

o How Do We Use the Plan? Budget planning, tax levy determination, scenario & trend analysis, annual update & reassessment

● Fiscal Metrics

o CUSD 200 Operating Expense Per Student - $18,510; continues to be below the state average

o FY24 Fund Balance (from an accrual perspective): 31.04%; within range of the Board’s 25-40% fund balance policy

o Standard & Poor’s Bond Rating: AA+; stable outlook

o State Board of Education Designation for FY24 - Financial Recognition (highest possible); ninth consecutive year

o FY25 Balanced Budget - 15th consecutive year of a balanced operating budget Open Session Minutes – January 22, 2025 Page 5

● Data Elements

o FY26 Budget

o Annual Financial Reports (AFR) for the past five years

o Consumer Price Index (CPI)

o Tax Levy/Extensions/Rates

o Equalized Assessed Valuations and New Construction

o Evidence-Based Funding (EBF) and Categorical Reimbursements

o Salary and Benefits Information

o Enrollment/Staffing

o Additional District Assumptions

● Revenue Assumptions

o CPI (What CPI measures, CPI capped at 5%, historical averages are used to formulate CPI > 3-yr avg = 3.7%, 5-yr avg = 3.5%, 10-yr avg = 2.7%

o Consumer Price Index (CPI) & New Property Growth

o Major Revenue Fund Assumptions - CPPRT, Interest Income, EBF, State MCAT, Federal Grants

● Expenditure Assumptions

o Major Expenditure Assumptions - Salaries (WWEA, CEA, Non-CEA Clerical/Admin), Lane Changes/Microcredentials, Retirement/Resignation Reductions), Medical/Dental, Purchased Services/Supplies (Ed Fund & O&M Fund), Purchased Services (Transportation Fund)

● Future Considerations

o Potential Revenue Growth - Cost Sharing Opportunities (Return of Registration Fees to Pre-pandemic Levels; City of Wheaton TIF #3, Community Partnerships) o Potential Expense Growth - Revenue Reductions (Union Contract Negotiations, High School Athletic Field Updates, State of Illinois FY26 Budget, Tier II

Membership - State Pension System Adjustments)

● CUSD 200 Funds

o 10 (Educational), 20 (Operations & Maintenance - O&M), 30 (Debt Service), 40 (Transportation), 50 (Municipal Retirement/Social Security - IMRF/SS), 60 (Capital Projects), 70 (Working Cash), 80 (Tort), 90 (Fire Prevention & Safety)

● Projection Summary - Operating Funds

o For FY2025 Budget and Projected for FY2026 - FY2030

o Operating Funds include Educational (10), O&M (20), Transportation (40), and Working Cash (70)

● Fund Balances - Historical and Projected (Operating Funds)

o By Fund for FY2020 - FY2025 and projected for FY2026 - FY2030

● Projection Summary - All Funds

o For FY2025 Budget and Projected for FY2026 - FY2030

o Includes Educational (10), O&M (20), Debt Service (30), Transportation (40), IMRF/SS (50), Capital Projects (60), and Working Cash (70)

● Projection Summary - Debt Service Fund

o For FY2025 Budget and Projected for FY2026 - FY2030

● Fund Balances - Historical and Projected (All Funds)

o By Fund for FY2020 - FY2025 and Projected for FY2026 - FY2030

There was additional information/comments on the following:

● All AFR information for the District from prior fiscal years gets loaded into the system. Looking at this specifically from the lens of an accrual basis, as that is the method used from an accounting practice perspective.

● CPI has the largest impact on your total District revenue as that is driven by the tax levy.

● The CPI for LY25 will be capped at 2.9%, the December CPI number released last week. The model projects a CPI of 2.5% moving forward.

● Fed funds overnight rates - one vs. two adjustments this calendar year.

● Revenue assumptions - CPI and New Property Growth: data from the assessors’ offices impact the number for EAV. In April/May, we will get a preview of where we were in estimation for LY24 when we receive the first draft of the extension for LY24.

● Revenue assumptions are a snapshot in time that is monitored throughout the year.

● CPPRT - IL Dept of Revenue provides an estimate of what they think it is going to be throughout the state; this has never been correct.

● Interest Income - shows the biggest change we will see; noted past vs. current practice regarding checking account vs. money market account for funds. We are earning more now (4.6%) than what was being earned. The impact on the projections based on the change in practice, the future practice (based on interest rates), and consideration of short-term CDs or commercial paper if those investments are greater than the overnight investment rate through the IL daily funds. As of December, we have almost met the budget for the whole year in interest income, and we have six months left.

● EBF as it relates to the FY26 Illinois budget; will know more in a few weeks.

● MCATs will be the biggest challenge moving forward, based on the uncertainty of the state's ability to balance its budget. What makes up MCATs? Anything related to transportation we paid for last year and are getting reimbursed this year is prorated (approximately 80%). The same is true for private student facility tuition (prorated approximately 70%).

● What are we being reimbursed for in prior year expenditures compared to the total spend in transportation? The average for DuPage County is about .40 cents on the dollar for what we spend in a full transportation fund from the state.

● Federal grants - ESSER revenue falling off.

● Expenditure assumptions - 75% of every dollar is spent on salaries and benefits.

● The CEA (classified employees) contract expires at the end of June 2025; the District is currently negotiating with the CEA.

● Retirements were bumped up in FY27 and 28 (based on retirement letters received from WWEA staff). We will monitor this going forward.

● Medical/Dental - should have preliminary medical renewal for 9/1/25 sometime next week; hearing some good things on the PPO side; we are currently undergoing a full pharmacy benefit manager review.

● Being cautious about purchased services and supplies.

● Potential revenue growth - the return of registration fees to pre-pandemic levels - would represent roughly a million dollars in revenue.

● Wheaton TIF #3 is the last TIF (the courthouse TIF); it expires at the end of 2028. If Wheaton follows the pattern of TIF #2, it will close out in calendar year 2028. We can estimate the incremental increase in EAV and the benefit to the District. If the city projects a surplus, the District represents roughly 70% of that surplus. Any revenue from this is not included in the five-year projections.

● FY25 budget includes an identified surplus/deficit (-$2.9 million) for two major board actions that took place - TIF #3 surplus payment that was not used in FY24 and used 75% for our safety/security updates throughout our schools, and the projected output of costs in advance of the referendum specific to Perkins & Will (P&W). Noted we will also reimburse ourselves for those P&W expenditures prior to the fiscal year-end and after the debt issuance is closed.

● The operating surplus/deficit line on the projection summary is the baseline for the board policy as it relates to a balanced budget. If that number is in black, we have a balanced operating budget that meets the policy.

● The “other financing uses” line includes anticipated Sherman Dergis (SD) spending on capital work and playground replacements.

● Operating funds are funds 10 (Educational), 20 (Operations & Maintenance), 40 (Transportation) and 70 (Working Cash).

● The impact of the debt service fund for FY26 on the projection summary for all funds is due to the last debt service payment (as of now) on 10/1/25. It is the timing of the debt payment compared to when the revenue comes into the system.

● There are no major Board-driven long-term decisions that we have to address at this time.

There were questions and/or additional discussion on the following:

● Money market account used - funds are collateralized.

● Revenue assumptions - many unknowns, many variables, and very conservative projections going forward.

● All-day Kindergarten income based on the state mandate to provide ADK by 2027-28; the ADK revenue has been backed out of FY28.

● Finance committee discussion - conservative view on both the revenue and expense side; CPI fluctuations and the impact on the projections; this year’s projections vs. last year’s (this year’s show we are in better shape); continued strong fiscal management by the district; HS athletic field updates and funding as it relates to potential expense growth; another possible tax abatement opportunity in the future.

● Facilities committee discussion - an opportunity to review and tweak the approach going forward as it relates to capital improvements to ensure we have a good, updated plan that reflects current conditions; reassessment of buildings and reforecast what to do in coming years; the possibility of less Sherman Dergis (SD) work in summer 2026 due to volume of middle school construction and how this impacts the upcoming budget.

● Inflation and the 5% cap on CPI.

● HS athletic field updates: timeline for when this is necessary, age of turf and average lifespan, replacing turf, aging bleachers, and press boxes.

● The unpredictability of the state as it relates to funding and payments to the District; should have a better perspective when the “State of the State” address is presented; EBF and MCAT’s; the state has done a good job of paying obligations on time in the last five years.

● Through the SD approach, the Board has gained some flexibility within an individual year regarding how we can respond to a state situation. For example, the Board can hold off on a capital project if necessary rather than being reactionary.

● CEA negotiations - if the numbers change slightly, we can absorb that.

● The projections do not reflect the debt issuance slated for March. This information will need to be updated, as it will impact working cash and debt payments.

PUBLIC COMMENTS – Agenda Items & Non-Agenda Items

None

ADJOURNMENT

MOTION

There being no further business to come before the Board in Open Session, Member Paulsen moved, Member Hjerpe seconded to adjourn the meeting. Upon a voice call being taken, all were in favor. The motion carried 6-0.

The meeting adjourned at 8:54 PM.

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