2.27.15

Financial Advisory Committee

FAC Goals

To inform the Financial Advisory Committee of District goals and strategic design and how it aligns to the District’s budget - All stakeholders understand, articulate, and support the mission.

To seek financial input for further discussion and obtain valuable information to share with the Board of Education - All stakeholders desire efficient utilization of resources.

To be transparent and have open communication - All stakeholders desire accountability through continuous assessment, periodic review, and renewal of vision.

FAC Meeting Timeline

2014-2015 November- 5 Year Planning Projections February-Budget Reduction Plan May-Update on District’s Financial

Outlook August-FY16 Budget

FAC Norms

Maintain positive intent All voices heard Stay on time

Agenda 2.27.15

Introductions

Presentation of District 427 Budget Deficit Reduction Plan

Topics for next meeting

Leaders collaborate to ensure District decisions and resources align with the District’s Strategic Design

FY16 Budget Goals Increased communication Improving efficiencies Informed decisions Foster relationships 3 year deficit reduction plan▪ Balanced budget▪ Strengthen the Fund Balance related to the

Board Policy

FY16 Budget Calendar

October-PMA Five Year Projections November-PMA Debt Structure December-Presentation of Deficit Reduction

Plan-BOE Parameter Input January-Program Managers/Staff Budget Work February-Program Managers Present to

Board/Reduction Plan for Personnel February- Prioritization Discussion April- Revenue Picture May-Budget Update June-Tentative Budget August-Final Budget

The Budget is a Roadmap

Economic Conditions/Constraints

Revenues State Funding Proration over timeTiming of paymentsAdditional unknown factors

▪ SB1▪ Pension Reform

Declining EAV Declining grant

funding

Expenses Deficit Spending Declining Fund

Balances

General State Aid (GSA) Based on Enrollment (Average Daily Attendance) and

Available Local Resources▪ District in Foundation Formula▪ Receives about $2,050 per ADA ($1,830 after proration)

FY2015 Proration: 89%, FY2016-2020 Proration: 89% State Mandated Categoricals

Ed Fund Spec Education and Transportation Reimbursement▪ Modeled after FY15 ISBE Estimates▪ 21% Increase over FY15 Budget

All Other: No change over FY15 Budgeted levels Federal Revenue

No change With the exception of Fed Spec Ed, timing

Key Revenue Assumptions

Salaries Per Contract where applicable▪ Teachers: Current contract through FY2017▪ Custodians: Current contract through FY2017▪ Aides: Current contract through FY2019▪ Future years to be negotiated

Health Benefits 10% annual increases

Other Expenses No change over FY15 Budgeted levels Any one time adjustments accounted for accordingly

Key Expenditure Assumptions

Eleven Year Perspective-Current

FPP Model

3 Year Reduction Plan

FY16- $1,600,000

FY17-$1,500,000

FY18-$700,000

Total $3,800,000

Five Year Perspective

Current Reduction Plan

Eleven Year Perspective

Current Reduction Plan

Fund Balance Board Policy

Operating Funds Fund Balance is 25% of Operating Fund Expenses-Minimum Reserve

Operating Funds Fund Balance is 10% of Operating Fund Expenses-Plan must be presented to restore future budgets

Base Integrity Commitment Performance

BUDGET

FY 2015 FY 2016 % chg FY 2017

REVENUE / EXPENDITURE PROJECTIONS

% chg FY 2018 % chg FY 2019 % chg FY 2020 % chg

REVENUELocal State

Federal Other

TOTAL REVENUE

$30,654,956$9,309,655$1,789,397

$0

$29,428,000$11,368,649

$1,847,169$0

-4.00%22.12%

3.23%

$30,236,662$12,075,741

$1,847,169$0

2.75%6.22%0.00%

$31,192,850$12,332,315

$1,847,169$0

3.16%2.12%0.00%

$32,183,190$12,322,865

$1,847,169$0

3.17%-0.08%0.00%

$33,207,240$11,981,973

$1,847,169$0

3.18%-2.77%0.00%

$41,754,008 $42,643,818 2.13% $44,159,572 3.55% $45,372,334 2.75% $46,353,224 2.16% $47,036,383 1.47%

EXPENDITURESSalary and Benefit Costs

OtherTOTAL EXPENDITURES

$33,128,434$11,953,984

$34,740,949$11,203,350

4.87%-6.28%

$36,367,713$11,203,350

4.68%0.00%

$37,251,171$11,203,350

2.43%0.00%

$38,387,503$11,203,350

3.05%0.00%

$39,336,684$11,203,350

2.47%0.00%

$45,082,418 $45,944,299 1.91% $47,571,063 3.54% $48,454,521 1.86% $49,590,853 2.35% $50,540,034 1.91%

SURPLUS / DEFICIT ($3,328,410) ($3,300,482) ($3,411,491) ($3,082,187) ($3,237,629) ($3,503,651)

OTHER FINANCING SOURCES/USESTransfer Among Funds (Net)

Sale of Bonds Other Financing Sources

Other Financing UsesTOTAL OTHER FIN.

SOURCES/USES

($408,710)$805,000

$0 ($2,010,921)

($415,741)$360,000

$0$0

($422,028)$360,000

$0$0

($422,497)$360,000

$0$0

($427,435)$360,000

$0$0

($431,235)$360,000

$0$0

($1,614,631) ($55,741) ($62,028) ($62,497) ($67,435) ($71,235)

SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($4,943,041) ($3,356,222) ($3,473,520) ($3,144,684) ($3,305,063) ($3,574,886)

BEGINNING FUND BALANCE $15,171,840 $10,228,799 $6,872,577 $3,399,057 $254,373 ($3,050,691)

PROJECTED YEAR END BALANCE $10,228,799 $6,872,577 $3,399,057 $254,373 ($3,050,691) ($6,625,577)

FUND BALANCE AS % OF EXPENDITURES

FUND BALANCE AS # OF MONTHS OF EXPEND.

22.69%

2.72

14.96%

1.80

7.15%

0.86

0.52%

0.06

-6.15%

(0.74)

-13.11%

(1.57)

Sycamore 427Aggregate - Projection Summary

© 2012 PMA Financial Network, Inc. All Assumptions have been provided by the District.

Page: 18 12/9/2014 - 2:34

PM

Fund Balance Policy

Integrity Commitment Performance

BUDGET

FY 2015 FY 2016 % chg FY 2017

REVENUE / EXPENDITURE PROJECTIONS

% chg FY 2018 % chg FY 2019 % chg FY 2020 % chg

REVENUELocal State

Federal Other

TOTAL REVENUE

$30,654,956$9,309,655$1,789,397

$0

$29,429,556$11,368,649

$1,847,169$0

-4.00%22.12%

3.23%

$30,247,093$12,075,741

$1,847,169$0

2.78%6.22%0.00%

$31,221,361$12,332,315

$1,847,169$0

3.22%2.12%0.00%

$32,236,878$12,322,865

$1,847,169$0

3.25%-0.08%0.00%

$33,291,209$11,981,973

$1,847,169$0

3.27%-2.77%0.00%

$41,754,008 $42,645,374 2.13% $44,170,003 3.58% $45,400,846 2.79% $46,406,912 2.22% $47,120,351 1.54%

EXPENDITURESSalary and Benefit Costs

OtherTOTAL EXPENDITURES

$33,128,434$11,953,984

$34,740,949$9,603,350

4.87%-19.66%

$36,367,713$8,103,350

4.68%-15.62%

$37,251,171$7,403,350

2.43%-8.64%

$38,387,503$7,403,350

3.05%0.00%

$39,336,684$7,403,350

2.47%0.00%

$45,082,418 $44,344,299 -1.64% $44,471,063 0.29% $44,654,521 0.41% $45,790,853 2.54% $46,740,034 2.07%

SURPLUS / DEFICIT ($3,328,410) ($1,698,925) ($301,060) $746,325 $616,059 $380,317

OTHER FINANCING SOURCES/USESTransfer Among Funds (Net)

Sale of Bonds Other Financing Sources

Other Financing UsesTOTAL OTHER FIN.

SOURCES/USES

($408,710)$805,000

$0 ($2,010,921)

($415,741)$360,000

$0$0

($422,028)$360,000

$0$0

($422,497)$360,000

$0$0

($427,435)$360,000

$0$0

($431,235)$360,000

$0$0

($1,614,631) ($55,741) ($62,028) ($62,497) ($67,435) ($71,235)

SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($4,943,041) ($1,754,666) ($363,089) $683,828 $548,625 $309,083

BEGINNING FUND BALANCE $15,171,840 $10,228,799 $8,474,133 $8,111,044 $8,794,872 $9,343,496

PROJECTED YEAR END BALANCE $10,228,799 $8,474,133 $8,111,044 $8,794,872 $9,343,496 $9,652,579

FUND BALANCE AS % OF EXPENDITURES

FUND BALANCE AS # OF MONTHS OF EXPEND.

22.69%

2.72

19.11%

2.29

18.24%

2.19

19.70%

2.36

20.40%

2.45

20.65%

2.48

Sycamore 427Aggregate - Projection Summary

Page: 19

12/9/2014 - 2:24

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© 2012 PMA Financial Network, Inc.

All Assumptions have been provided by the District.

Fund Balance Policy

Reduction Plan

Implementation of the 3 Year Budget Reduction Plan

Yearly Review Input from Staff, Board of Education and

Administration Review of impact on students opportunities Review of impact on student achievement

Sycamore Success- Looking at the Big PicturePrograms Drive Resources

Sycamore Community School District…

Empowering all Learners to Succeed in their World

Strategic

DesignMission/Vision

•Professional Learning Communities (PLC)•Curriculum Assets

•Mass Customized Learning (MCL)•Response to Intervention (RTI)

•Technology

•Extra Curricular Activities•Co-Curricular Opportunities•Dual Credit Opportunities- Academies

•Educational Institutions•Business Community

•Non-Profits

•Grant Opportunities

•Building Budgets

•Account Consolidation•Review of Expenditures•Examine Revenues

How we are going to get there? Is the expenditure mandated? What is the alignment to Strategic

Design? (Evidence through the Strategic Design

Book) What is the alignment to the District

Vision? (Evidence through the Vision Statement)

What is the alignment to the current District goals? (Which goal?)

What is the impact on students?

(Quantity and Depth) What is the impact on the overall

organization?

How we are going to get there?

What is the impact on the culture? Can this be accomplished another

way? (Schedule, community resources)

What data is there to back up the recommendation? (Data source)

What is the actual cost?

Budget Proposal

Proposal Impact of Proposal

Reassignment of administrative duties and roles

Partial or full position reduction- (to be determined)

Elimination of courses with low enrollment at SHSClass size increasesContinued practice of student assignment in elementary buildings

Reduction 7.0 FTECertified Core Positions(Based on unknown enrollments and high school course requests)

Reassignment/Realigned schedules of intervention services

Reduction 1.0 FTE Certified Reading Specialist

Budget Proposal

Proposal Impact of Reduction

Realignment of service delivery Review of caseloads

Reduction of 3.0 FTE Certified Special Education Positions

Resource allocation of intervention services based onstudent need 2.0 Certified Related Services Positions

Realignment of schedules

Reduction 3.2 Certified Non-Core Positions (Art, Music, PE, technology, non-core)Staff may be required to serve multiple buildings

Budget Proposal

Proposal Impact of Proposal

Decrease in enrollment of ELL students served

Reduction of .6 Certified ELL Position- Services will be clustered at identified buildings.

Grant funded programs and positions will be eliminated/ placed on hold until evidence of funding is received

Reduction of 1.0 Certified Reading TeacherReduction of grant funded support staffREACH Program

Budget Proposal

Proposal Impact of Proposal

Realignment of student support services (Special Education,instructional, library, health)

Reduction 26.0 FTEEducational Support Positions (Based on unknown enrollment and caseloads)21.0 additional support were added in 2014-2015 Decrease in students with IEP over the 2014-2015 school year

Realignment of Central Office duties Reduction of 0.5 FTE support staff position

Budget Proposal Proposal Impact of Proposal

Realign custodial duties Reduction of 2.5 FTE Custodial Positions

Realign maintenance duties Reduction of .5 FTE Maintenance Position

Budget Proposals

Proposal Impact of Reduction

Place a limit on number of students attending KEC based on priority for courseworkWhen possible offer courses on SHS campus in lieu of CTE courses at KEC

Reduction in tuition paid to KECReduction in transportation costsPossible student scheduling benefit

Schedules reviewed for staff assignmentsReduction in overloads at SHS/SMSReduction in extra pay for supervision

Review of number of stipends in PNA extra curricular contracts

Reduction in coaching/activities positionsStudent participation limitedCurrently 24 volunteer coaches /activities also provide assistance

Realign District Grade Level Elementary PLC meetings to after school Staff would meet after school

Budget Proposals

Proposal Impact of Reduction

Restructuring of staff professional development opportunities Staff access to professional development

Deferred purchase of new buses Possible increase in maintenance costsDecline in resale value

Elementary Budget

North $(7,892.00)

South Prairie $(4,813.00)

Southeast $(6,203.00)

West $(3,850.00)

North Grove $(5,300.00)

$-

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

FY15FY16

MS-HS Budget

MS $(16,400.00) Ath/Act $(30,760.00)

HS $(37,544.00)

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

FY15

FY16

Admin

Curric

ulum

$(7

4,76

7.00

)

OSCARE

$(9

,550

.00)

Tech

$(2

22,3

83.0

0)

O&M $

(142

,344

.11)

Tran

s $

(153

,717

.17)

RTI

$(24

,000

)

Spec

ial E

d $

(158

,390

.52)

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

FY15

FY16

FY16 Budget

Operating Budget Reduction $897,914

Personnel Budget Reduction $1,266,595

Total Reduction $2,164,509

Contingency $400,000

Total Reduction With Contingency $1,764,509

Requests For Board Input

DESCRIPTION SCHOOL/ PROGRAM ESTIMATED AMOUNT

Teaching & Learning

Pre-K Program Pre-K $ 91,915

Resource Coordinator District $ 12,000

Operations

35 Samsung Galaxy Tablets MS $ 8,630

70 sets of Samsung Galaxy Tablets MS $ 17,260

Fenced Play Area SP $ 29,000

Bandroom Accoustical Treatment HS $ 8,000

$ 166,805

All stakeholders desire efficient utilization of resources

Questions?