1. Community High School District #128 Financial Long Range Business Plan Charting the Course for the Future 1 February 24, 2009

2. District 128 Strategic Plan Initiatives 2 ACHIEVEMENT INITIATIVE Develop Student Achievement Advisory Council Collect, analyze and improve student performance Challenge all students throughout the curriculum with reading, writing and critical thinking initiatives Establish an instructional leadership subcommittee to review and revise the curriculum renewal process Review and revise student placement TECHNOLOGY INITIATIVE Develop a Technology Advisory Committee Implement technologies which support the collection, interpretation and analysis of student performance data Implement technologies which enhance delivery and content of the curriculum Implement technologies which enhance parent/student/teacher /district communications. FINANCIAL INITIATIVE Develop Finance Advisory Council Establish an Educational Foundation Develop a master facilities plan Establish sound financial policies to support the education program Create and maintain partnerships for special projects Educate the community on district finances

3. Presenters Alex Delli Paoli, Jr., Board Member Yasmine Dada, Assistant Superintendent 3

4. Process Map 4 District Summary Page 4 Sources of Revenue Pages 5 - 12 Types of Expenditures Pages 13 - 21 Reserves Page 22-23 Asset Management Pages 24-37 Operating Cost Pages 38-41

5. 5 District Summary Libertyville High School - 2048 Students Vernon Hills High School – 1387 Students District 128 Equalized Assessed Valuation $3,057,390,684 (2007) # of Properties in District 128 – 20,408 T.I.F. Area – 1 (Libertyville) Tax Rate – 2.136 (2007) Revenues = $74,000,000 Expenditures= $77,700,000 From Reserves= $ 3,700,000

6. Process Map 6 District Summary Page 4 Sources of Revenue Pages 5 - 12 Types of Expenditures Pages 13 - 21 Reserves Page 22-23 Asset Management Pages 24-37 Operating Cost Pages 38-41

7. 2009 Revenues by Source 7

8. 2009 Revenues by Source District 128 8

9. Local Revenues Property Taxes Other Local Investment Earnings Student Fees Impact/Transition Fees Corporate Personal Property Replacement Tax Other 9

10. Consumer Price Index History 10

11. State Revenues General State Aid Other State Categoricals Special Education Orphanage Transportation Lunches and Breakfasts Grants School Construction Grant Gifted 11

12. Illinois Foundation Level Per Student 1998$ 3,132 1999$ 4,225 2000$ 4,325 2001$ 4,425 2002$ 4,560 2003$ 4,560 2004$ 4,810 2005$ 4,964 2006$ 5,164 2007$ 5,334 2008$ 5,734 2009$ 5,959 12

13. Federal Revenues Title Grants Title III – Bilingual Funds Title IV – Safe & Drug Free Schools Title II – Teacher Quality Perkins Vocational & Technical Training Grant 13

14. Process Map 14 District Summary Page 4 Sources of Revenue Pages 5 - 12 Types of Expenditures Pages 13 - 21 Reserves Page 22-23 Asset Management Pages 24-37 Operating Cost Pages 38-41

15. 2009 Budget Types of Expenditures District 128 15

16. Funds A fund is an independent accounting entity with a self balancing set of accounts including its own assets, liabilities, and fund balance. Debits must equal credits with each fund. 16 The State of Illinois requires districts to account for all expenses in funds.

17. Funds Types Educational Operations and Maintenance Bond and Interest Transportation IMRF/FICA Capital Projects Tort Working Cash Fire Prevention and Safety 17

18. Function Action or purpose for which person or thing is used: Instruction Support Services Community Services Non-programmed Charges Debt Service Other Financial Users 18

19. Objects Describes service or commodity obtained: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Outlay Non-Capitalized Equipment Termination Benefits Other 19

20. Majority of Expenditures School districts are a service organization not a manufacturer. Payroll Employee Benefits 20

21. Projections 21 In Millions 2009201020112012201320142015201620172018 Revenues75.575.777.679.380.882.183.384.987.289.6 Expenses68.473.579.084.690.797.5104.8113.2122.5132.7 Reserves94.796.995.590.280.364.943.415.1-20.2-63.3

22. Operating Cost Per Pupil 22 COMMUNITY HIGH SCHOOL DISTRICT 128 OPERATING COST AND TUITION CHARGE 1999-2008 Operating Cost per Pupil:19992000200120022003200420052006 20072008 Average Daily Attendance (ADA) 2,1752,3342,4702,609 2,8032,7993,008 3,0703,135 Operating Costs: Educational20,936,20524,322,97628,224,75030,661,34633,384,08835,355,78737,332,96341,175,238 43,461,51245,817,550 Operations & Maintenance3,592,8355,542,0207,663,2906,176,9436,655,5547,560,7957,963,33411,198,127 10,093,55810,331,435 Bond & Interest1,353,6942,965,0414,674,3714,427,8113,331,6813,455,1594,679,1703,710,728 3,867,1884,073,056 Transportation1,073,4251,699,3691,705,5441,777,9312,165,2632,210,1492,092,2611,963,431 2,061,2992,237,264 Municipal Retirement/Soc.Sec.635,961617,034584,257750,408751,030803,1781,059,7911,203,430 1,276,9001,332,772 Sub-total 27,592,12035,146,44042,852,21243,794,43946,287,61649,385,06853,127,51959,250,954 60,760,45763,792,077 Less Revenues/Expenditures of Nonregular Programs: Tuition1,564,9721,517,3041,989,6632,130,7452,812,4813,230,1143,132,3812,984,604 3,344,2363,420,647 Adult Education160,454178,055231,917290,862352,354317,782315,289297,557 313,565290,473 Summer School213,177233,195235,827286,056400,845410,227288,355317,647 312,870400,252 Capital Outlay1,186,3782,180,1903,740,8392,390,7182,198,5551,766,1172,294,3074,898,467 3,563,1393,827,870 Debt principal retired 141,896576,0892,245,354855,9031,083,9542,182,0353,064,6772,733,030 3,058,1943,307,509 Community Services146,689132,561165,925202,643240,289132,315192,905200,655 209,345111,923 Nonprogrammed charges0293,261215,926346,182434,501401,917401,182439,399 646,024509,236 Sub-total3,413,5665,110,6558,825,4516,503,1097,522,9798,440,5079,689,09611,871,359 11,447,37311,867,910 Operating costs24,178,55430,035,78534,026,76137,291,33038,764,63740,944,56143,438,42347,379,595 49,313,08451,924,167 Operating costs per pupil - (based on ADA) 11,11712,86713,77714,29314,85814,60715,51915,751 16,06116,563 Tuition Charge: Operating costs24,178,55430,035,78534,026,76137,291,33038,764,63740,944,56143,438,42647,379,595 49,313,08451,924,167 Less: Revenue from specific programs2,334,3762,947,3044,299,2442,925,5163,455,6673,427,6233,796,1493,884,641 4,226,4034,478,733 Net operating costs21,844,17827,088,48129,727,51734,365,81435,308,97037,516,93839,642,27743,494,954 45,086,68147,445,434 Depreciation allowance1,530,5452,609,4292,859,1303,161,0923,528,9244,017,1284,352,8502,512,984 2,970,0352,476,577 Allowable tuition costs23,374,72329,697,91032,586,64737,526,90638,837,89441,534,06643,995,12746,007,938 48,056,71649,922,011 Tuition charge per pupil - (based on ADA)10,74712,72213,49414,38414,88614,81815,71815,295 15,65215,924 Source: Comprehensive Annual Financial Reports - 1999-2008

23. Process Map 23 District Summary Page 4 Sources of Revenue Pages 5 - 12 Types of Expenditures Pages 13 - 21 Reserves Page 22-23 Asset Management Pages 24-37 Operating Cost Pages 38-41

24. Reserves (including asset management) 24 In Millions 2009201020112012201320142015201620172018 Revenues75.575.777.679.380.882.183.384.987.289.6 Expenses68.473.579.084.690.797.5104.8113.2122.5132.7 Reserves94.796.995.590.280.364.943.415.1-20.2-63.3

25. Process Map 25 District Summary Page 4 Sources of Revenue Pages 5 - 12 Types of Expenditures Pages 13 - 21 Reserves Page 22-23 Asset Management Pages 24-37 Operating Cost Pages 38-41

26. Asset Maintenance Cost Projections – Total Slide #1 26 Item Description200920102011201220132014 Site Asset Management322,700352,700247,700142,700112,7005,152,700 Building757,6802,673,9001,868,680840,4001,267,380513,400 Equipment169,500441,000284,500155,000142,000187,000 Instructional600,000 Technology1,400,000 Renovation/Replacement/ Additions TOTAL3,249,8805,467,6004,400,8803,138,1003,522,0807,853,100

27. Asset Maintenance Cost Projections – Total Slide #2 27 Total Item Description20152016201720182009-2018Future years Site Asset Management112,700102,700682,700227,7007,457,0001,347,700(annual) Building458,180348,580343,180353,1009,424,48011,496,000 Equipment231,000176,000122,000102,0002,010,000328,000(annual) Instructional600,000 6,000,0001,200,000(annual) Technology1,400,000 14,000,0001,400,000(annual) Renovation/Replacement/ Additions 41,810,000 12,000,000 See pg 37 TOTAL2,801,8802,627,2803,147,8802,682,80080,701,48027,771,700

28. Site Asset Management Slide #1 28 2009201020112012 Item Description Longevity LHSVHHSLHSVHHSLHSVHHSLHSVHHS Parking Lot Replacement15 250,000 Parking Lot Sealing and Stripping 1 20,000 Road repair2 10,000 20,000 Road replacement15 Fence replacement30 110,000 Fence repair5 10,000 Landscaping5 85,000 Sports Court repairs1 7,700 Sports field repairs1 15,000 Parking Lot Repair5 Parking Lot Lights Stadium turf replacement(natural) 10 100,000 Irrigation - VHAC 130,000 Sewers 50 40,000 Total 287,700 35,000 157,700 195,000 112,700 135,000 47,700 95,000

29. Site Asset Management Slide #2 29 2013201420152016 Item Description Longevity LHSVHHSLHSVHHSLHSVHHSLHSVHHS Parking Lot Replacement15 1,500,000 Parking Lot Sealing and Stripping 1 20,000 Road repair2 20,000 Road replacement15 Fence replacement30 Fence repair5 $20,00 10,000 Landscaping5 50,000 Sports Court repairs1 7,700 Sports field repairs1 15,000 Parking Lot Repair5 50,000 Parking Lot Lights Stadium turf replacement(natural) 10 Irrigation - VHAC Sewers 50 3,500,000 40,000 Total 27,700 85,000 3,547,700 1,605,000 27,700 85,000 47,700 55,000

30. Site Asset Management Slide #3 30 20172018Future Item Description Longevity LHSVHHSLHSVHHSLHSVHHS Parking Lot Replacement15 Parking Lot Sealing and Stripping 1 20,000 Road repair2 20,000 Road replacement15 50,000 Fence replacement30 100,000 Fence repair5 10,000 Landscaping5 85,000 50,000 Sports Court repairs1 7,700 75,000 7,700 Sports field repairs1 620,000 15,000 Parking Lot Repair5 Parking Lot Lights Stadium turf replacement(natural) 10 Irrigation - VHAC Sewers 50 1,000,000 Total 647,700 35,000 97,700 130,000 142,700 1,205,000

31. Building Asset Management Slide #1 31 200920102011201220132014 Item DescriptionLongevityLHSVHHSLHSVHHSLHSVHHSLHSVHHSLHSVHHSLHSVHHS Tuck pointing 1030,00020,00030,00020,00030,00020,00030,00020,00030,00020,00030,00020,000 Roof repair 105,00015,0005,00015,0005,00015,0005,00015,0005,00015,0005,00015,000 Roof replacement 25200,000 Chillers 20 32,000 100,000 32,000 Air Handlers 20 30,00017,00030,000 37,000 Fan Intake /Exhaust 101,280 Air Conditioners 10 5,80020,00011,00020,00011,00020,000 Cooling Towers 20 35,000 300,000 35,000 Piping 40 550,000 Pumps 10 7,700 30,000 10,0007,700 Emergency Generators 20 23,000 Fire Protection System Life Security System 12 Pool 30 125,000 Pool Treatment System 15 100,000 Floor, tile 10 20,000 Floor, Carpet 5 150,000 30,000 100,00030,000 100,00030,000 Floor, Gym 25 Floor, poured Life Boilers 30 500,000 Cafeteria Server equipment 15 125,000 Cafeteria remodeling 10 85,000 Ceilings 205,400 Bathrooms 2020,000 Lighting fixtures 30 20,000 Locker Room Repairs 1018,000 Locker Room renovations 100,000 90,000 Elevators (code rehab) 40 1,200,000 Elevators (renovation) Bleacher repairs 20,000 Main Gym Bleachers 200,000 West Gym Bleachers 100,000 Automatic Screen and Projection 50,000 Retaining Wall 25,000 Window Replacement 30,000 70,000 Studio Theater Lights 50,000 Studio Theater Seats 100,000 Art Gallery 50,000 Sprinklers Replace moveable wall 30,000 15,000 Consumer Science Equipment 50,000 Ten Year Life Safety 10 Ten Year Life Safety 10 75,000 Ceiling Tiles 1010,000 Asbestos abatement 135,000 Pool Upgrade 20 500,000 TOTALS 479,680278,0002,521,900152,0001,610,680258,000727,400113,000613,100654,280323,400190,000

32. Building Asset Management Slide #2 32 2015201620172018FUTURE Item DescriptionLongevityLHSVHHSLHSVHHSLHSVHHSLHSVHHSLHSVHHS Tuck pointing 1030,00020,00030,00020,00030,00020,00030,00020,000120,000 Roof repair 105,00015,0005,00015,0005,00015,0005,00015,00010,00015,000 Roof replacement 25 1,500,000 Chillers 20 32,000 Air Handlers 2030,000 129,000 Fan Intake /Exhaust 101,280 3,2001,2803,200 52,00050,000 Air Conditioners 105,800 Cooling Towers 20 Piping 40 1,000,000 Pumps 107,700 Emergency Generators 20 250,000 Fire Protection System Life Security System 12 500,000 Pool 30 12,000,000 Pool Treatment System 15 150,000 Floor, tile 10 200,000 Floor, Carpet 530,000 Floor, Gym 25 1,500,000200,000 Floor, poured Life Boilers 30 150,000350,000 Cafeteria Server equipment 15 500,000 Cafeteria remodeling 10 Ceilings 205,400 1,500,000 Bathrooms 2020,000 Lighting fixtures 30 1,500,000 Locker Room Repairs 1018,000 Locker Room renovations Elevators (code rehab) 40 Elevators (renovation) 1,500,000 Bleacher repairs Main Gym Bleachers West Gym Bleachers Automatic Screen and Projection Retaining Wall Window Replacement 70,000 Studio Theater Lights Studio Theater Seats Art Gallery Sprinklers Replace moveable wall Consumer Science Equipment Ten Year Life Safety 1075,000 Ten Year Life Safety 10 Ceiling Tiles 1010,000 Asbestos abatement 135,000 Pool Upgrade 20 TOTALS 343,180115,000262,38086,200256,98086,200266,90086,2003,641,00019,855,000

33. Equipment Asset Management Slide #1 33 200920102011201220132014 Item Description Longevity LHSVHHSLHSVHHSLHSVHHSLHSVHHSLHSVHHSLHSVHHS Marquis10 40,000 Scoreboards10 25,000 50,000 Trucks5 32,000 Turf mowers5 17,000 Tractors15 20,000 Cars5 20,000 Vans5 35,000 Cafeteria free standing Classroom Furniture10 25,000 Office Furniture10 5,000 Whiteboards10 5,000 Choral Risers 15,000 Acoustical Treatments - Studio Theater Pool Field House Gymnastics Room Wrestling Room Auditorium Pit Lift30 100,000 Auditorium Pit Lift30 100,000 Auditorium Acoustical Shell30 100,000 Portable Bleachers 7,500 Portable Bleachers15 40,000 Total 77,500 92,000 194,500 246,500 187,000 97,500 80,000 75,000 107,000 35,000 152,000

34. Equipment Asset Management Slide #2 34 2015201620172018Future Item Description Longevity LHSVHHSLHSVHHSLHSVHHSLHSVHHSLHSVHHS Marquis10 Scoreboards10 Trucks5 32,000 Turf mowers5 17,000 Tractors15 20,000 Cars5 20,000 Vans5 35,000 Cafeteria free standing Classroom Furniture10 25,000 Office Furniture10 5,000 Whiteboards10 5,000 Choral Risers Acoustical Treatments - Studio Theater Pool Field House Gymnastics Room Wrestling Room Auditorium Pit Lift30 Auditorium Pit Lift30 Auditorium Acoustical Shell30 Portable Bleachers 15 40,000 Total 119,000 112,000 72,000 104,000 87,000 35,000 67,000 164,000

35. Instructional Capital Outlay Item DescriptionLongevityAnnual Cost Textbooks 5 400,000 Copiers5 200,000 35

36. Technology Asset Management School location Item DescriptionLongevity Total Replacement Cost (Est. Annual Cost) (Years) (Current Dollars) LHS VHHS Computer System - Desktop5-6$1,190,000$85,000 Computer System - Laptop5-6$90,000$18,000 Servers - Administrative5-6$250,000$20,000 Servers - Data Storage5-6$80,000$12,000 Servers - Backup5$30,000$5,000 Phones System14$100,000$3,000 Printers - Network8$140,000$4,500 Printers - Local5$30,000$2,000 Printers - Maintenance not capital $10,000$6,000$4,000 Infrastructure - Cabling20$250,000$8,000 Infrastructure - Hardware7$500,000$20,000 Infrastructure - Wireless5$50,000$1,500 Classroom and Meeting Room Multimedia - Includes LCD projector, audio and video systems 7$2,500,000$90,000 Software - General Productivity3$300,000$37,000 Software - Curriculum Specific Dept. Budgets Software - Administrative (Financial, Data, SIS) 5$400,000$20,000 Misc. Replacement Hardware not capital $42,000$21,000$20,000 Misc. Purchased Services not capital $14,000$7,000 36

37. Asset Management Software Item DescriptionLongevityReplacement Cost Software Upgrades - Financial5 100,000.00 Software Upgrades - Student5 150,000.00 Software Upgrades - Data Analysis5 150,000.00 TOTAL 400,000.00 37

38. Building Asset Management Renovations/Replacements/Additions New/ Item DescriptionLocationLongevity Cost ReplacementYear DueComment Press BoxVH30 200,000 N2008-2009 Ticket BoothVH20 90,000 N2008-2009 Swimming PoolLH30 16,000,000 R2009-2011 New baseball fieldsVH20 150,000 Both2010-2011 Administration centerAD20 3,500,000 N2010-2011 GymnasiumVH30 4,500,000 N2010-2011 Additional classroomsVH30 7,000,000 N2011-2013 Stadium Turf replacementVH8 700,000 R2012-2013 Stadium Turf replacementLH8 700,000 R2012-2013 Weight RoomVH30 750,000 nopen Netting -fieldsVH5 80,000 Nopen Science Room ConversionVH30 350,000 Nopen Softball DugoutsLH30 200,000 R Tennis CourtsLH20 400,000 R Garage Storage (5 car)LH30 375,000 R Track StorageVH30 150,000 N Cafeteria ReplacementLH30 2,500,000 R2015 2nd floor storage/field houseVH30 300,000 N Library ClassroomLH30 45,000 R Existing Pool SpaceLH30 3,000,000 R Team RoomVH30 500,000 Stadium Entryway GateLH30 100,000 Open Football Stadium Bleachers (visitors)LH15 150,000 2008-2009 IrrigationLH 55,000 Dance StudioLH ? open Running Track SurfacingLH10 15,000 Site AcquisitionLH ? NOpen Development cost of new siteLH ? NOpen TOTAL 41,810,000 VHHS 14,770,000 LHS 23,540,000 ADMIN 3,500,000 38

39. Process Map 39 District Summary Page 4 Sources of Revenue Pages 5 - 12 Types of Expenditures Pages 13 - 21 Reserves Page 22-23 Asset Management Pages 24-37 Operating Cost Pages 38-41

40. FY09 Budgeted Expenditures** 40 Salaries$34,000,000 Benefits$7,100,000 Capital Outlay$4,200,000 Utilities$1,300,000 Food Service$900,000 Custodial Services$2,400,000 Special Education (Contracted)$5,900,000 Transportation$2,400,000 Other Supplies, Materials, & Purchased Services$13,690,000 Lake County Vocational Center$370,000 Debt Service$5,440,000 TOTAL$77,700,000

41. Annual Cost of Contracted Services Student Transportation 1,000,000 Food Service 1,200,000 Custodial and maintenance 2,000,000 Software Maintenance ( Admin & Student) 60,000 Administration Office Rent and Common Area Maintenance 170,000 TOTAL 4,430,000 41

42. Building Management Annual Service Contracts 42 Item DescriptionLocation Cost Backflow PreventionVHLH 5,405.00 Alarm SystemVHLH 5,743.00 ElevatorVHLH 15,408.00 Trash removalVHLH 22,800.00 Emergency GeneratorVHLH 2,408.00 Chiller PlantVHLH 13,936.00 BoilersVHLH 3,296.00 Wireless Fire AlarmVHLH 1,716.00 Water SoftenersVH 600.00 Fire Sprinkler SystemVHLH 2,600.00 Duct Cleaning (kitchen)VHLH 3,200.00 Kitchen Equipment P.M.VH 600.00 BleachersVHLH 1,400.00 Partition WallVHLH 2,839.00 STR RoofVHLH Fire Extinguishers (kitchen annual)VHLH 1,779.00 Grounds UpkeepVHLH 35,590.00 Fire extinguishers (building)VHLH 1,586.00 Irrigation SprinklersVHLH 1,200.00 Grounds/ Tree treatmentVHLH 23,012.00 BAS LH 10,500.00 ExterminatorVHLH 2,118.00 Asbestos Inspection LH 1,000.00 Subtotal 158,736.00

43. Reserves (After Asset Management Projects) 43 In Millions 2009201020112012201320142015201620172018 Revenues75.575.777.679.380.882.183.384.987.289.6 Expenses65.268.074.681.587.289.7102.0110.6119.4130.0 Reserves97.9102.499.993.383.872.746.217.7-17.1-60.6 Asset Management Costs 3.25.54.43.13.57.82.82.63.12.7 Reserves After Projects 94.796.995.590.280.364.943.415.1-20.2-63.3

44. Reserves Chart 44 In Millions

45. Revenues Decreased $3m yearly (page 23) 45 2009201020112012201320142015201620172018 Revenues72.572.774.676.377.879.180.381.984.286.6 Expenses68.473.579.084.690.797.5104.8113.2122.5132.7 Reserves94.793.989.581.268.349.925.4-5.9-44.2-90.3 In Millions