001Please. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> Should we recall the roll? >> Schmidt >> here. >> Boehner. Casper [clears throat] Dunlop Came Lloyd here Barry >> here 3.1 five-year financial forecast >> all right so I have a presentation if we can audience here my time in the chair was very short All right. So, this is the annual five-year financial forecast. And the idea here is to get a a big picture look at how the district is doing. Um, so I'm going to go through the assumptions first that we used to build the report and then I'll show the actual report with some conclusions at the end. Okay, so uh
002in the budget timeline, this is where we are. We usually do this report sometime in the spring. Um and just an overview of our revenue. Uh you can see the biggest chunk of our revenue is property taxes which is 72% of the total this year. The second biggest is uh evidence-based funding EBF. Just five years ago the property tax amount was about 80% of our total and statebased funding was about 5%. So you can and the others have stayed relatively the same. So you can see how over time uh just over the last five years the the amount has really shifted um it's still majority local property taxes but um more now from the state. So with property taxes being the biggest part of it, we look at the consumer price index that determines how
003much um additional revenue we can get from one year to the next. So here we have five years of history uh the current year in the middle and then five years of projections. So you see the two spike years during the high inflation in the past. Um and remember our property taxes are limited to 5% or CPI. So the years that it was higher we only got 5%. Um so the projection for next year or the the amount we're receiving th during this calendar year is the 2.9%. We already know next year's number 2.7% and then we're using for the projections 2.5% which is our our long-term average. So the numbers are much lower than they have been in in the recent couple of years. As far as evidence-based funding, you could see the the
004four years in a row that we got new additional funding, and that that's cumulative. So, it it works out to $5.3 million of additional funding every year going forward. Um, the district is in tier three. There are four tiers for evidence-based funding. Tier one is the lowest funded schools. They get 90% of all new money. Tier two gets 9%. So um with us being in tier three, it will generate about $50,000 uh which is not much on our $50 million budget. Um and then also I'm using small increases in transportation reimbursements because our costs are going up and all other state revenues are being held flat. So on the revenue side again, it's Whoops. Uh are you doing that or am I doing uh it's essentially two and a half% for the biggest chunk of
005our revenue and the rest is very small amounts. Okay. Now the next one um interest revenue was $2.5 million last year. We're projecting it to be $2 million this year and forward. Um, essentially that's because interest rates are a little bit lower now than they were a year ago at this time and our fund balance is going to stay mostly flat over the next five years. Um, all other revenues were holding flat. And then you could see the abatement history here. Um, each time we got a property tax relief grant, we had to abate for two years. So those numbers are in the history. And then we have uh 2.2 two million in in the final year of the two years of abatement and we're going to do an extra million dollars to step down
006the abatements. Uh ready for the next one. On the expense side, uh as is the case for most school districts, salaries and benefits are the biggest portion. That's twothirds of our total. And then everything else is um smaller. And just as far as the assumptions that we use, uh salaries per the negotiated agreements, we have agreements in place with most of our unions. We're negotiating with one right now. Uh we're projecting flat uh number of staff. And then health insurance is the big one. In previous years, I was using 6% but we are being told and we're seeing this out in the in the news that that increases are going to be bigger going forward. So, I'm using 9% for future years and it's possible that number will be higher for this upcoming year. Um
007for all the other things except for transportation we're using two and a half percent same as CPI and transportation we're using 5% which is a combination of uh rate increases and uh just more uh more special ed students especially using transportation services. Next one Vern. [sighs] So I I apologize for all the numbers and how small that is. Uh this is what the five-year looks like. Uh the basically this line is the important line. It shows whether we have a surplus or a deficit. You can see in the current year we have a budgeted deficit which is essentially because of the abatements that we're doing. Then the next three years we have surpluses and then it switches back over to deficits in years four and five. Um I know those numbers are hard to read.
008you have copies in board docs diligent. Another number we like to look at is the fund balance as a percentage of our expenses. And we like to keep that number at 80% or higher. And it's probably hard to read, but in these first in the current year and and the first three projected years, that number is above 80%, but then it starts to dip down as we go into deficit spending in years four and five. This is maybe a little easier way to see it. The green line at the top is what our actual fund balance is. It's the same. It's five years of history, current year in the middle, and then five years of projections. And then the blue line underneath it is the 80% of fund balance line. So you could see that
009historically we have been above our fund balance has been above the 80% of expenditures. And then as we as time goes on, it gets closer and then in years four and five in the future it dips down below that line. So kind of as a summary, um the the 5.3 million in extra state funding has really uh been helpful to us over these past few years, but the the last two points are kind of the important ones. Um longterm our expenses are rising faster than our revenues. Uh we do have surpluses near-term, but we're looking at deficits longer term. So it's it's something that we're going to keep a close eye on. And um that's all I have for this. Does anybody have any questions? Surplus. >> Yes. target surplus that may be needed to
010go to the next slide. So the blue line that blue line is going to continue to go up because as our base [clears throat] goes up >> right >> amount has to go up to match. So there is a target surplus that we would need to maintain 80%. So go back one slide then V Fern. Yes. So yes uh as so 80% of expenditures is our goal for fund balance. So uh the expense line here is going up five or six% each year. Um, so that means the fund balance to stay at 80% needs to go up by the same amount. And so, uh, as these surpluses get smaller, even though it's a surplus, it's still farther away from 80% of the expense line. Um, that's just a function of the numbers getting bigger, the
011expense numbers getting bigger. Um, and as far as a a set number to to keep it at 80%, it's just whatever amount the expense goes up, that's how much the fund balance needs to go up as well. Um, it's different for each year. Is that what you're looking for? >> And so, obviously, we're not there right now. Um because in years three, four, five, you know, the the fund balance as a percentage of expenses is going down. Um which is why we're looking at making some changes. >> 2.5%. Yep. So something has to give somewhere. Um we're in a good spot in that we have mo most districts strive for a 50% fund balance. So we are much more conservative in that regard and it gives us a bigger cushion. Um, according to the So,
012this program is from a company called Fivecast and he works with the the the rep I work with works with a 100 school districts and he says we are probably the number one in the number one best shape of all the districts he works with just because of the level of our fund balances. Um, that doesn't mean we don't have work to do to keep year five from getting here, but if we can make changes now, that will help smooth things out in the long term. >> Okay. All right. Thank you. property taxes. >> We have not caught up. Um the county is behind on sending out levy uh revenue. Um so the levy comes in two halves. The spring collection, fall collection. The fall collection was late to begin with. It's normally uh collected
013in September. Uh this time the bills weren't due till December 1st, so the money didn't even start coming in until three months later than normal. We are expecting about $19 million and we've only gotten about 17 million so far. So, uh and we're already in March and the the new bills are going out. Um it I think it's just a huge mess at the county level. They changed their software system and they're having trouble. I don't know if they're having trouble accounting for it or or what, but we are definitely short of what we are owed as of right now. >> I don't know off the top of my head. I'd have to look that up. Um somewhere between 20 and 30 million is my guess. >> It would have been in the fall this
014year is the lowest it ever would have gotten. >> 20 million. We started the year 49. We were carrying 50% of fun. 50% of expenditures that's $27 million. So if we find $30 million that means we would have been borrowing money. >> Yep. >> There are districts around us that have had to issue tax anticipation warrants just to continue their operations. Um so that's one benefit of having the higher fund balance is we don't have to borrow our own money. Um, yes. >> Yep. So, okay. Thank you. Yeah. >> All right. 3.2 financial remedy. >> Okay. So, now is where I'm putting on my Jeff Staywick hat. Um, so given the financial condition that was just presented, um, Dr. Stwick and I have been work and the board have been working on some things, some
015expense adjustments that we can make moving forward. So, I have a list here that I'm just going to read. I don't know if the board has a copy of this, but um just to get it out in the public some of the things that we're talking about. Uh just again as a reminder with revenues going up 2 and a.5% and expenses going up five or six% uh that's a trend that's unsustainable. So we're trying to make some changes now in order not to have to make drastic changes in the future. So uh I've got a list here a couple of the things. First is uh in regards to technology um we have identified about $180,000 of savings in the tech department which consists of uh two different things. One extending the life cycle of purchasing
016tech equipment. So if something was for example on a three-year cycle, now we're going to do it on a four-year cycle. Um and then also uh in the tech staff area we're looking at uh attrition of one position. One person has retired and we're not replacing that position. So those two things combined are savings of about 180,000. The second thing is summer school. Um that's one that we're looking at cutting as well. um just in discussions it it it appears that uh it's not giving us the bang for our buck that that we have been hoping for. Attendance is down. Uh that's a savings of about $100,000. And then we have prek transportation. Right now we offer transportation um to anybody in our prek program and it it's quite expensive. We're looking at cutting that
017pretty much in half by saying, you know, if you're in the cruise area coming to Fulton, you only get AM transportation or PM, not both. Um, so some some economizing of our preK transportation would save about 75,000. And then we're also um getting rid of the dean position at Central Middle School. Um, and so none of these cuts are easy. You know, it's um it's a difficult thing, but we're looking to kind of rightsize our expense budget um and make some changes now to avoid having to make large amounts of changes later. Any questions or comments on that? So overall that'd be about 450ish thousand. >> Yes. 450 >> Annual savings starting next year. >> Those numbers were not reflected in the five-year by the way. >> All right, let's move on to 4.1 superintendent
018report. >> All right, superintendent report. Just a few items today. Um, we have been reminding parents to complete the five essentials surveys via social media, email, schooly, and Seesaw. Families also had an opportunity to take the survey while at parent teacher conferences. This year's survey is being conducted using Panorama and is shorter and easier for parents to navigate. We're asking parents to submit one survey for every student enrolled in one of our schools before the March 10th deadline, which is tomorrow, I believe. Uh, parent teacher conferences were held on February 12th. Elementary parents used Parent Square to schedule appointments while the middle school held open format conferences as they have in the past for the second round. Overall feedback from parents and staff was positive. We have one condolence this month. Mary Day's mother-in-law, Grace
019Kahavic, passed away. Mary is a math specialist at Fulton. We extend our sincere condolences to Mary and her family. And then we have a few celebrations. Uh, board secretary Amy Hammerick has been recognized by the Illinois State Board of Education and those who excel with an award of excellence. Board Vice President Rick Lloyd was recently recognized by the Illinois Association of School Boards and as an established board leader. IASB recognizes school board members for the time and effort given while taking part in learning and leadership activities through the organization. So congratulations to our two board members. And then also congratulations to Cruz students, staff and families. Cruz recently hosted a readathon fundraiser which raised 15,724. Over a nine-day period, students read over 129,900 minutes and raised $15,000 for their school. Students in classes were celebrated
020for reading the most number of minutes and for raising the most money. Congratulations to students in Mr. Champ and Mr. Nelson's classes for showing 100% participation. And that concludes the superintendence report. >> Thank you. >> All right. 5.1 citizens may address the board at this time. >> On to 6.1 uh union reports. >> This month, a lot of the news is about reading. This time of year, we're really doing a push on reading. Students have been excited to celebrate reading with their one book one school. Uh they get an office visit and they've got some inclass reading. Third through fifth grade teachers and students are busy preparing for the A test. Prepare preparations include not only reading and math practice but also some exciting motivational activities. Many classes are busy with exciting out of school
021and even in school field trips at Fton. Staff and students celebrated Read Across America week with an inspirational spirit week. challenges included such as wear a shirt that represents your favorite sport and then read about an influential athlete. Wearing a shirt with a positive message and reading about growth, mindset, and positivity and wear something to represent your culture or hometown while you read about a culture different than your own. They've had a fun week at Memorial Staff and parents are working together to bring events to Memorial in the coming months. Uh this Friday will be a PTA sponsored movie for families to enjoy. We had to schedule because of bad weather so everyone's been waiting for it for a long time. Um in May we'll have explore more in our volunteer breakfast. Uh those are
022currently in the planning stages. Uh the monthly key has been introduced uh to the students. This month it's flexibility. Students are working on ways to show flexibility. Staff are on the lookout to recognize students they see exhibiting this character trait to reward them with a key. The students are encouraged to enter the bookmark making contest. The theme is reading and fun. Winners will have the bookmarks created and passed out during book check out for everyone at the media center. And we're also working on a book challenge. We've got some book brackets. We've got different characters. Uh currently we've got Olivia against Fancy Nancy. So we'll have to let you know about that one tomorrow. But we've got a lot of fun stuff going on all around the district, especially in >> um with the ESP.
023We've actually started negotiations and what we'll say is that it's been a pleasant experience so far. So, I'm looking forward to contin uh consent agenda here. Hold on. I got it. with me. Oh, there's not a motion there. Okay. I move that the board approve item 7.1, approval of minutes. Item 7.2, approval of close session minutes. Item 7.3, approval of the destruction of closed session tapes. Item 7.4, approval of financial items as presented. >> 7.5. Oh, approval of personnel items as presented. >> Is there a second? >> Any discussion? >> Secretary, call the role. >> Boehner, >> yes. >> Schmidt, >> yes. >> Lloyd, yes. Barry, >> yes. >> 7.6, Six surplus equipment for sale, donation or disposal. >> Yes, this was information last month. It is uh mostly Matt stuff. It's uh some old
024equipment essentially and um nonfunctioning equipment. Um so we're looking for this to be declared surplus so we can dispose of it or sell anything that has value. Is there a motion? >> I move that the board of education declare items as surplus for sale, donation, or disposal as presented. >> A second. >> Any discussion? >> Secretary call the roll. >> Boehner, >> yes. >> Schmidt, >> yes. >> Lloyd, yes. Barry, >> yes. 7.7 award bid for CMS renovations project. >> Yes. For this one, we had a bid opening on February 25th for work at Central Middle School. It's mostly bathroom um renovations. We had 13 submitted bids, which is a very high number. Um and the lowest bidder actually so the the architect uh does reference checks and background checks on all the starting with
025the lowest bidder and found the lowest bidder to not be qualified based on their experience. So, uh, the recommendation is for the second lowest bidder, uh, which is Construction, Inc. at a total of $550,000. >> Can I have a motion? >> I move that the board of education approve the CMS renovation project as presented. >> Is there a second? >> Second. >> Any discussion? >> Secretary. >> Schmidt. >> Yes. >> Boehner, >> yes. >> Lloyd, yes. Barry. >> Yes. 7.8. Approval of resolution authorizing abatement of property tax relief grant FY26 second year of abatement. >> Yes. So this is uh as part of the property tax relief grant we have to abate for two years. So this is the second year of the one that we started last year. >> Is there a motion? I
026move the board of education approve the resolution authorizing the abatement of a portion of the taxes hereto for levied by community consolidated school district 146 Cook County Illinois in connection with the receipt of a property tax relief grant fiscal year 26 >> is there a second >> any discussion secretary call the role >> yes >> Schmidt >> yes >> Lloyd yes Barry >> yes >> 7.9 approval of resolution authorizing abatement of debt service fund the board will take. >> Yes. Yeah. Sorry. >> That's all right. So, okay. So, this one is our optional abatement we're calling it. Um it's a way to step down abatements. So, that is uh it lessens the impact on taxpayers. So, this one is not required. It's one that we're doing uh optionally. Uh it's it's $1 million and for
027abatements like this, it comes out of the debt service fund. So there will be a corresponding uh transfer resolution which is I'll explain next, but this is the million-doll extra optional abatement that we're proposing here. >> I have a motion. Move the board of education approve the resolution authorizing the abatement of a portion of the 2025 taxes hereto for levied by community consolidated school district number 146 Cook County, Illinois. >> Is there a second? >> Any discussion? Secretary call the role. >> Boehner. >> Schmidt. >> Yes. >> Lloyd, yes. Barry, >> yes. 7.10, 10. Approval of the resolution authorizing a transfer from the education fund to the debt service fund. >> Okay, so on this one, we just voted to abate a million dollars from the debt service fund. The debt service fund doesn't have
028an extra million dollars, so we have to transfer it in from the education fund. Uh we're required to do these extra abatements out of the bond and interest fund because that preserves our ability to levy the full amount in future years. So, it's it's a two-step process. Abade out of the debt service fund and then transfer money to the debt service fund, if that makes sense. >> Is there a motion? >> I move the board of education approve the resolution authorizing the school treasurer to transfer funds from the education fund to the debt service fund. >> Second. Any discussion? Secretary, call the role. >> Mayor, >> Schmidt, >> yes. >> Lloyd, yes. Barry, >> yes. 7.11. Honorable dismissal of teachers. >> I don't have a lot to add to this one. Um, two positions being
029honorably dismissed. >> A motion. I move the board of education approve the resolution for honorable dismissal of teachers Matthew Schuster and James Safaric. >> I second. >> Any discussion? >> Secretary call the role. >> Boehner Schmidt. >> Yes. >> Lloyd, yes. Barry, >> yes. 8.1, communications. >> Think we have any >> uh nine information item food service renewal. >> Yes. So, uh, this is information I'll be asking for approval next month on renewing our food service contract with Witson's. Uh, we're currently in year two of a possible five years with them and this year has gone very well. Um, they are limited to CPI increases just like we are for property taxes. Uh, but there's a different CPI used for food. It's CPI for food or food away from home I think. Um so that
030number is 4.1%. So the proposal is for a 4.1% increase in our food service cost. Um again it's info this month looking for approval next month. >> Thank you. >> That contract the CPI is that already negotiated in the contract? It is. Yeah, it was uh we had to do a bid two years ago and that's part that was part of the bid. >> So we are going to skip. >> Yes. >> Move to 11. Action. >> Can I have a motion 11.1 dismissal of tenure teacher? >> I move to approve the resolution to dismiss tenure teacher Amanda Severino from employment and pending a formal ISB dismissal hearing to suspend without pay. >> I have a second. I second >> discussion. >> Secretary call the role. >> Boehner, >> yes. >> Schmidt, >> yes. >>
031Lloyd, yes. Barry, >> yes. >> 12.1 adjournment. We are adjourned. Thank you.