April2017Operating&CapitalFundsReferendaFebruary12,2017SummaryUpdate
DRAFTWIP–FORDISCUSSIONPURPOSESONLYRev.11February2017
2
WHYAREWEHERETODAY?
OurCoreMission:Toprovideahighqualitypubliceducationto
over6,000children SurgingEnrollment
DecliningRevenues
ImmediateChallenges
CriticalNeeds
Schoolbuildingsthataresafe,functional,accessible,andofsufficientcapacity
EquityInclus
ion
WholeChildFocus
PositiveLearningEnvironment
OperatingFunds
ReferendaQuestion
CapitalFacilitiesBond
ReferendaQuestion
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D97:ATENYEARHISTORYOFENROLLMENTGROWTH
q Averagedailyattendanceup24%(1,080kids)since2007
q Fallenrollmentup
10%(549kids)sincereferendumyear2011,exceedingprojectionsby400students
q Fall2016enrollmenthasbrokenthe6,000markforthefirsttimein40years
5,4215,506
5,577
5,7505,856
5,914 5,891
6,055
5,0815,129
5,261
5,459 5,4985,567 5,582
5,700fcst
4,000
4,500
5,000
5,500
6,000
6,500
2010 2011 2012 2013 2014 2015 2016 2017
NUMBER
OFST
UDEN
TS
YEAR
FallHousingEnrollmentandAverageDailyAttendance
FallHousingEnrollment Avg.DailyAttendance
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SCHOOLSCONTINUETODRIVEPOPULATIONGROWTHANDRETENTIONINOAKPARK
WhydopeoplecometoOakPark?
QUALITYSCHOOLS
DIVERSITYinallofits
forms
GEOGRAPHY(includingtransit)
Source:NationalCitizenSurvey,NationalResearchCenter,Inc.(NRC)andInternationalCity/CountyManagementAssociation(ICMA)2015
“SchoolsarebyfarthenumberonereasonpeoplemovetoOakPark.”
JohnLawrence,PresidentOakParkAreaAssociationofRealtors
4thAnnualIGOVAssembly,October2016
OakParkResidentResponses–2015NationalCitizenSurvey
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WHYREVENUEHASDECLINED
PropertyTaxes68.7%
OtherLocal6.7%
GeneralStateAid
11.4%
OtherState7.2% Federal
6.0%
2016BudgetedRevenues- OperatingFundsD972016BudgetedRevenues–OperatingFunds
D97-ElementarySchools36%
D200-OPRF24%Triton
College3%
Township3%
WaterReclama?on
3%
Parks5%
County&Other5%
Library6% Village
15%
2015Distribu>onofOakParkPropertyTaxes
Source:OakParkTownshipAssessor’sOffice,Jan.2016
Issue#1:PropertyTaxes~69%ofD97Revenue
u Illinoispublicschooldistrictsrelyheavilyonlocalpropertytaxesforfunding
u ThePropertyTaxExtension
LimitationLaw(PTELL),a.k.a.“TaxCap”lawofCookCounty,limitsrevenuegrowthfromlocalpropertytaxestothelesserofinflation(CPI)or5%o ForD97ourannualproperty
taxgrowthwaslimitedtoanaverageof1.5%overthelastfiveyears
Issue#2:StateFunding~19%ofD97Revenue
u Duetothebudgetcrisis,
thestatehasdiscountedandfrozenpayments
§ Thisrepresentsapproximately$9MMto-dateoflostrevenuesince2012
§ Thestatewillnotmakeuptheshortfall
u Inaddition,thestatehas
eithernotpaidallofthemandatedcategoricalpaymentsintheyeartheyaredueormadelatepayments• Currentlyvouchers
awaitingcomptrollerprocessingtotal~$3.8MM
Thegrowthinpropertytaxrevenuesdoesnotincreaseatthesamerateastheincreaseinstudent-drivenexpenditures
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REVENUESSINCE2011
$10,000
$11,000
$12,000
$13,000
$14,000
$15,000
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
ActualsthroughFY2016-Revenue/Student
60.0
65.0
70.0
75.0
80.0
85.0
90.0
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
ActualsThroughFY2016-InMillions
Revenueshavedeclinedonaper-studentbasisforthepastfouryears
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REVENUES,EXPENDITURES,ANDSTUDENTSSERVED
4,900
5,000
5,100
5,200
5,300
5,400
5,500
5,600
5,700
$55,000,000
$60,000,000
$65,000,000
$70,000,000
$75,000,000
$80,000,000
$85,000,000
2010 2011 2012 2013 2014 2015 2016
NUMBER
OFST
UDEN
TS
DOLL
ARAMOUNT
YEAR
OPERATINGREVENUES&EXPENDITURESVS.AVERAGEDAILYATTENDANCETRENDS
AVG.DAILYATTENDANCE REVENUES EXPENDITURES
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PROJECTEDOPERATINGFUNDBALANCEIFNOACTIONISTAKEN
$31,661,182
$35,356,154 $35,935,967
$33,146,985
$24,293,712
$11,645,018
$3,227,759
$(7,139,140)
$(19,327,884)
$(31,397,288)
$(47,264,132)
$(60)
$(50)
$(40)
$(30)
$(20)
$(10)
$-
$10
$20
$30
$40
$50
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Millions
ActualandProjectedYear-EndOperatingFundBalances
FYEnd
ForecastAssumptions
Ø Revenues§ Propertytax
revenueswillgrowattherateofinflationat2%
§ Stateaidwillremainflat(GSAwillnotbeprorated)
§ Federalfundswillremainflat
Ø Expenditures§ Overallannualized
expendituregrowthisprojectedat2.6%overthenextfiveyears
§ Apensionshiftisnotincludedintheassumptions
Source:Forecast5Analytics,January2017
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ISD97AGOODSTEWARDOFPUBLICFINANCES?
Ø Since2008thedistricthasmaintainedtheFinancialOversightandReviewCommittee(FORC),astandingboardcommitteecomprisedofoutsidecitizenadvisorswithexpertiseinbothpublicandprivatefinancialmanagement.FORCactsasanindependent,secondsetof“eyesandears”onthedistrictsfinances,expenditures,revenues,budgets,fiscalpolicies,anddecision-making.
Ø TheD97boardisjustoneofahandfulofdistrictsstatewide(among850)toearntheprestigiousIllinoisAssociationofSchoolBoard’sbiennialGovernanceRecognitionforsoundgovernance,receivingtheawardin2013and2015
Ø ForthepastfouryearsD97hasreceivedthehighest“unqualified/unmodified”auditratingfromitsoutsideaccountants(RSMMcGladrey)
Ø Thedistrict’smostrecentcreditratingwasAa2,amongthehighestinthestate
Ø DevelopedinconjunctionwithFORC,D97’srobustfiscalpolicies(http://www.op97.org/BOE/Policies.cfm)areamongthestrongestinthestateofIllinois
§ Governsusesofdebt,includingregulatingtheuseofdebtforoperatingexpenses§ Tightrisktoleranceforinvestments§ Oneofonlythreedistrictsinthestatewithafundbalancetargetpolicythathasbothafloor(25%)andaceiling(75%)
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D97PERFORMANCEINMANAGINGEXPENSESVS.2011REFERENDUMPROMISESANDPROJECTIONS
Onbothatotalcostandper-studentbasis,D97consistentlymaintainedexpendituresbelowbudgetandreferendumcommitmentsdespiteanincreaseofover400studentsabovethe
enrollmentprojectionsthrough2018*
*2011enrollmentwasapproximately5,500students;currentenrollmentfor2016hasalreadyexceededthe2018-projectedlevelof6,000students
$10,000
$11,000
$12,000
$13,000
$14,000
$15,000
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
ExpendituresPerStudent2011Projectionsvs.2016Actuals
ReferendumProjections(1/18/2011)-Expenditures/Student
ActualsthroughFY2016-Expenditures/Student
60.0
65.0
70.0
75.0
80.0
85.0
90.0
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Expenditures-2011Projectionsvs.2016Actuals
ReferendumProjections(1/18/2011)-InMillions
ActualsThroughFY2016-InMillions
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PEERDISTRICTCOMPARISON:PER-PUPILSPENDING
$10,854$11,069$11,101$11,410$11,474$11,727$11,901$12,100
$12,636$13,013
$13,412$13,744$13,923$13,978$14,150$14,386$14,509
$15,939$15,945
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
NewLenoxSD122WaucondaCUSD118
TroyCCSD30COakLawn-HomeSD123
AntiochCCSD34WoodlandCCSD50GrayslakeCCSD46LaGrangeSD102
WheatonCUSD200GlenviewCCSD34GlenEllynSD41ElmhurstSD205OakParkESD97
HawthornCCSD73EvanstonCCSD65
CCSD93LombardSD44
BarringtonCUSD220OrlandSD135
AMOUNTPERSTUDENT
SCHOOLDISTRICT
OPERATINGEXPENDITURESPERPUPIL-FY2015
Averageoperatingexpendituresperpupilamongpeerdistrictsis$13,014;D97iswithin7%ofaverage
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PEERDISTRICTCOMPARISON:PERPUPILEXPENDITUREGROWTH
-0.6%-0.6%-0.3%
0.0%
0.6%0.9% 1.1%
1.3%1.6%
1.9%2.1% 2.3% 2.3%
2.8% 2.9%
3.7%4.1%
4.3%
5.2%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
pERCENTAGECHANGE
SCHOOLDISTRICT
OPERATINGEXPENDITURESPERPUPIL(5YEARANNUALIZED%CHANGEFY2010-FY2015)
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PEERDISTRICTCOMPARISON:PERPUPILLONG-TERMDEBT
$2,274
$2,806
$3,316
$3,396
$4,193
$4,753
$4,953
$7,765
$10,206
$10,431
$11,091
$12,998
$14,581
$15,076
$17,229
$17,742
$18,415
$19,195
$29,673
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000
OrlandSD135
AntiochCCSD34
GlenviewCCSD34
LombardSD44
OakParkESD97
CCSD93
GlenEllynSD41
BarringtonCUSD220
HawthornCCSD73
WoodlandCCSD50
EvanstonCCSD65
LaGrangeSD102
WheatonCUSD200
ElmhurstSD205
OakLawn-HomeSD123
WaucondaCUSD118
TroyCCSD30C
GrayslakeCCSD46
NewLenoxSD122
AMOUNTPERSTUDENT
SCHOOL
DISTRICT
LONG-TERMDEBTPERSTUDENT-FY2015
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UNDERSTANDINGOPERATINGFUNDS
u OperatingFundspayforthebasic,day-to-dayexpensesofprovidingthecoreK-8educationinD97–80%ofwhichissalaries&benefits
u Includessalaries&benefits,utilities,busservices,meals,textbooks,classroomsupplies
u Currentfundinglevelsprovideforstaffandprogramstosupportadistrict-wideaverageclasssizeof21
Source:IllinoisStateBoardofEducation,2016
D97AverageClassSizesbyGrade-2016
66%
13%
11%
5%
2% 3%
OakParkSD97-FY2016OperatingExpenses
Salaries
Benefits
PurchasedServices
Supplies&Materials
Dues,Fees,&Tuition
TerminationBenefits
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WHATTHEDISTRICTISREQUESTING–FIRSTQUESTIONOperationalBallotQuestion:Thisquestionreferstothecostsofeducatingstudents
andthedeliveryoftheeducationalexperiencetochildren
OperatingFundsReferendumProposedLimitingRateIncrease 1.000%
ProposedNewRate $4.982%
ProposedD97LevyIncrease $13,344,415
ProposedNewD97OperatingLevy $66,481,876
Increasepercurrent$1,000oftaxbill $74
Increaseforcurrent$10,000annualtaxbill
$740
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CURRENTNEEDSTOBEADDRESSEDBYTHECAPITALFACILITIESBONDREFERENDUM
1. Alleightofthedistrict’selementarybuildingsrequiresignificantmaintenanceandrepairworktosustainsafety,structuralintegrity,andfunctionalityforthenext~20years
Ø Averageageofelementarybuildingsis85years;newestschoolis65yearsold
Ø Lastmajormaintenance&repairinvestmentsoccurredin2000-2002
2. OnlyhalfofD97’stenbuildingsarefullyaccessible
3. Classroommodernization4. EnrollmentsurgeisnecessitatingphysicalcapacityexpansionsatHolmes,Lincoln,andLongfellow
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Category Description 2018 2019 2020 2021 Total
ü Maintenance&RepairtoSupportCoreFunctionalityofBuildings
ü AccessibilityforAllStudents
§ Accessibilityimprovements§ Firealarmupgrades§ Lightingsystems§ Powerdistributionupgrades§ Plumbingrepairs§ Roofrepairs§ Boilerrepairs§ Structuralrepairs§ Tuckpointing
$11.7MM $13MM $12.9MM $37.6MM
ü ClassroomModernization
ü CapacityExpansions
§ Enhancedlearningspaces*§ Classroommodernization§ Conversionofformercomputerlabs§ ExpansionsatLincoln&Longfellow§ Upgradesand/orinstallationof
HVACsystems(temperaturecontrol)
$4.7MM $9.6MM $4MM $1.7MM $20MM
Total $4.7MM $21.3MM $17MM 14.6MM $57.6MM
PLANNEDFACILITIESCAPITALINVESTMENTSBYCATEGORYANDYEAR
*KeyinvestmenttosupportVision**Holmesexpansionworkin2018tobefundedbyDSEB
TentativeProjectTiming>> Holmes**Longfellow
BeyeLincolnMann
HatchIrving
Whittier
HolmesLincoln
Longfellow
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WHATTHEDISTRICTISREQUESTING–SECONDQUESTION
Shall the Board of Education of Oak Park School District Number 97, Cook County, Illinois, improve the sites of, build and equip additions to, and alter, repair and equip school buildings of said School District and issue bonds of said School District to the amount of $57,500,000 for the purpose of paying the costs thereof?
YES
NO
CapitalFacilitiesBondQuestion:Thisquestionreferstoimprovingthecondition,size,andmaintenanceoftheschoolbuildings
BuildingReferendumChangein
currenttaxbillifproposed
$57.5MMbondauthorizationis
approved
$0
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EXECUTIVESUMMARY
Basedonextensiveplanningandanalysisoverthepastyear,theboardhasdeterminedtoruntworeferendaballotquestionsontheApril4,2017CookCountyConsolidatedGeneralElection:
OperatingFunds FacilitiesCapitalExpenditure(capex)Funds
BallotQuestion:
1.000%limitingratepropertytaxextensiontoprovideadditionalfundsforoperatingexpenses,
generatinganadditional$13.3MMannually
Authorizationtoissueupto$57.5MMin20-yearcapital
infrastructurebonds
What’sitfor?
OperatingFundspaytheday-to-dayexpensesofrunningadistrictandeducatingchildren.Itincludessalaries,benefits,instruction,utilities,technology,food,transportation,supervision,programs,custodians,specialeducationservices,andcurriculummaterials
FacilitiesCapexFundspayforbasicbuildinginfrastructure,includingmaintenanceandrepair,state-mandatedLife/Safetyupgrades,accessibilityimprovements,expansions,andmodernizations
Whyisitneeded?
§ Ahistoricsurgeinenrollment(up24%since2007;40-yearhighof6,055kidsenrolledinfall2016),combinedwith
§ Decliningrevenues
§ Eightofthedistrict’stenbuildingsarefacingsignificantmaintenanceandrepairneedsthatincluderoofing,boilers,electrical,plumbing,andfirecodeworkoverthenextfouryears
§ Expansionsareneededatthreeelementarybuildingsduetoincreasedenrollment
§ Classroommodernization,accessibilityimprovements,andclimatecontrolareplannedforalldistrictbuildings
Netimpacttotaxpayers:
$74per$1,000(or$740per$10,000)ofcurrenttaxbill
None;thedebtpaymentswillessentiallyrenewtheexistingcapitalbondsissuedin1999thatfundedthemiddleschoolsandelementarybuildingupgrades
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KEYDELIVERABLESOFREFERENDASUCCESS
Preservehighqualitypubliceducationtoover6,000
childreninOakPark
Maintainclassroomsizesbelow
stateaverage
Extendfunctionality,safety,andstructuralintegrityofelementarybuildingsforthenext~20
years
Continuetoattractandretainhighcaliberteachers
ProvideresourcestoachieveVision,includingreducingthe
“OpportunityGap”
Modernizeclassrooms,includingsupportforNextGensciencecurriculum
Enabletemperature-controlledlearningspacesforallelementarybuildings
Provideaccessibilityatalldistrictschools
Allowforexpansionofbuildingsto
accommodatehistoric
enrollmentsurge
Ensurefinancialstabilityforthedistrictthrough
2022
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“DOMINOEFFECT”CONSEQUENCESOFFAILURE
2017
2018
2019
100%ofDSEBdollarsmustbereservedfor
operatingfunds
Operatingquestionfails,Capexpasses
Nocuts
Continueddeficitspending
Structuraldeficitcondition
Statewatchlist
Payrollnotmet
Stateintervention(lossoflocalcontrol)
$4MMofimmediatecuts,26retiringteachersnotreplaced
$6-9MMofadditionalcuts§ 70-80FTEstaff
reduction§ Allnon-core
programs/curriculaeliminated
Avg.classsizeincreasetohigh
20’satelementaryschools,low30’satmiddleschools
Bothquestionsfail
Alloperatingcutsasdescribed
100%ofDSEBdollarsmustbereservedforoperating
funds,Life/Safety&emergencyrepairs,butwillnotbesufficienttocovermaintenance.Allsystems
willoperatetofailurebeforerepair.
Nobuildingexpansions,accessibilityupgrades,
classroommodernizationortemperaturecontrol
Visionunattained
Redistrictingand/orgradecenters
Avg.classsizeincreasetohigh20’satelementary
schools,low30’satmiddleschools
Capexquestionfails,Operatingpasses
100%ofDSEBdollarsmustbereservedfor
Life/Safety&emergencyrepairs
Temporaryclassroomson
playgrounds,ORredistricting,ORgradecenters
Holmesexpansioncancelled
NoexpansionsatLongfelloworLincoln
Noclassroommodernization,accessibilityupgrades,or
temperaturecontrol
Visionunattained
Largerclasssizeseliminateneedfor
expansionsatHolmes,Lincoln,
Longfellow
Visionunattained
Lossofcreditrating
Higherborrowingcosts
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VISION
OakParkElementarySchoolDistrict97willcreateapositivelearningenvironmentforallstudentsthatisequitable,inclusiveandfocusedonthewholechild
2016-17GOALSTOSUPPORTTHEVISION(THE“BIGROCKS”):
1. AlignD97systems,structures,and
processestoreflectourstatedvalueofeducatingthewholechild(e.g.weactinwaysthatreflectourunderstandingofsupportingthesuccessfuldevelopmentofeachandeverystudent)
2. EstablishacomprehensivesystemofsupportforallDistrict97staff
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OAKPARKELEMENTARYSCHOOLDISTRICT97Dr.CarolKelley,SuperintendentBOARDOFEDUCATIONJimGates,PresidentAmyFelton,VicePresidentGrahamBrisbenA.RupaDattaJimO’ConnorBobSpatzHollySpurlockSherylMarinier,BoardSecretary260MadisonSt.OakPark,IL60302(708)524-3000www.op97.org
THANKYOU!
Forfollowupquestionsand
informationregardingthereferenda,
pleasecontactusorvisit:
http://www.op97.org/d97referenda/index.cfm