Sangamon Sun

 Ball-Chatham Community Unified School District 5 Finance Committee met April 18

Here are the minutes provided by the committee:

Finance Committee Board members present were Pat Phipps, and Kyle Barry and member Andrea Rediger; Superintendent Becca Lamon; and CSBO Charlotte Montgomery.

Ms. Montgomery provided a levy update with historical data, see attached. The report represented the ballooned levy request vs. the actual levy received. The report provided the amount of the levy tied to CPI and the amount tied to new property. EAV was discussed. She noted that this represented a reassessment year causing the EAV to grow 5.8039% compared to last year’s 2.1046%. The EAV growth allowed the actual tax rate to go down from $4.63 to $4.61.

The District received all available dollars for property tax collection. Had the District received all funds requested, that would indicate that there was money “left on the table” that would be uncollectable since it had not been requested. The District can only receive what it has requested.

Ms. Montgomery noted the decision had been made to amend the FY23 budget. Annual budgets are developed in May/June when many factors are not known. An amended budget is required since we project we will spend more than what was originally budgeted. A tentative draft is attached.

Revenue Impacts:

Build America Bond’s federal subsidy went down

Collection rate for property tax collection rate was 53% in May and June last year, thus reducing collections that would have fallen into this year.

Grant revenues are estimated to be down since the State has begun making late payments again Interest income is greater than anticipated due to the increasing rates and more cash on hand to invest.

Expenditure Impacts:

Emergency expenditures

Substitute teachers historically have been less than $350,000 FY22 we spent $664,318, which was assumed to be due to COVID. However, we project this year we will spend $700,000.

A greater number of children requiring IEPs, or one-on-one assistance. The number of paras the District had to hire to meet this need was 56 compared to previous years when the number of paras averaged 25.

More grant dollars were received, thus increasing program expenditures.

Inflationary factors

Deficits in Fund 20’s Excess Bonds, Fund 50 and Fund 90 was planned. We are “spending down” in those accounts. Deficits in Funds 10,20 and 40 were expected due to timing of payroll. We are cash basis and a June 2022 paycheck (budgeted in FY22) was made July 1 st , throwing it into this year. ESP staff increases to catch them up in the marketplace was greater than current year resources could provide; therefore, the budget reflected utilizing reserves in fund balances.

Ms. Montgomery noted that investments have been made in T-bills and CDs, as well as with PMAs ISDLAF (Illinois School District Liquid Asset Fund). Another $7.3 million was invested the first week of April bringing total investments to $22,571,142. Estimated earnings will be in excess of $600,000 compared to $197,427 last year.

The FY24 budget is still in its infancy with Principals and Department Heads making decisions on priorities and new initiatives with justifications. Ms. Montgomery noted that her department will be working to upload the tentative budget before the start of school so people will know how much they have been budgeted. Changes can be made until the Superintendent’s formal budget request is presented in August with adoption in September.

https://go.boarddocs.com/il/cusd5/Board.nsf/Public#