1. Tentative Budget Review 2017-2018
Morton CUSD 709
Tentative Budget Review

2. Year End Summary
Preliminary estimates (before final reconciliations and audit adjustments) show Education Fund revenue $194,700 greater than budgeted and Education Fund expenditures $1,173,300 less than budgeted.
Preliminary estimates show an increase in the Education Fund Balance of $1,384,500 as of 6/30/17.
The Education Fund revenues were over budget primarily due to higher than budgeted Federal IDEA revenue. We received an additional $112,000 in Special Education IDEA Room and Board revenue in FY 17 that we had not previously received. In addition, the IDEA Flow Through revenue was higher than budgeted.

3. Year End Summary
The Education Fund expenditures were less than budget primarily due to lower than expected self funded health insurance costs. The FY17 costs were lower than FY16 by $631,000. The FY17 claims were higher than FY15 by $128,000.
Excluding the impact of the self funded health insurance costs, all other Education Fund expenditures were very close to the budgeted level. Total Education Fund expenditures, excluding the impact of the self funded health insurance costs, were .45% less than budgeted. This equates to $116,000 less than the budget of $26,099,800.

4. Year End Summary
In the Operations and Maintenance Fund (O&M), revenue was higher than budget by $286,000 and expenditures were less than budget by $1.3 million.
Preliminary estimates show a decease in the Operations and Maintenance Fund Balance of $358,800 as of 6/31/17. The FY17 budget was predicting a $1,978,400 decline in the O&M Funds balance.
The main reason expenditures were less than budget in the O&M Fund was a result of life safety capital projects not being completed in the FY17 year and the inclusion of some project components into the Fund 60 – Site Construction work.

5. 2017-18 Timeline August 1, 2017 – Board approves tentative budget
August 2, 2017 – publicize display of tentative budget and place on display in District Office
September 5, 2017 – Board discuss final budget
September 19, 2017 – Public hearing for final budget
September 19, 2017 – Board approves final budget
September 20, 2017 – Deliver final budget to ROE and County Clerk, upload file to ISBE and post on District website

6. Major Revenue Sources – 2018 Budget
Property Tax Revenue across all funds account for 81.5% of combined budgeted revenue.
General State Aid revenue is 3.8% of combined budgeted revenue and is budgeted 100% in the Education Fund. GSA is budgeted at the same level as FY17.
Corporate Personal Property Replacement Tax (CPPRT) is 3.7% of combined budgeted revenue and is split between the Education Fund ($550,000), O&M Fund ($450,000) and the IMRF Fund ($300,000).
Other State Revenue (Special Education, Transportation) is 2.3% of combined budgeted revenue. At this point, the FY18 budget assumes receipt of only two payments from the State for mandated categoricals.
Federal sources are 2.8% of combined budgeted revenue.
Other local revenue (interest earnings, school fees, lunch receipts, building rentals) are 5.9% of combined budgeted revenue.

7. Expenditures – 2018 Budget
Salaries and benefits account for 70.0% of combined expenditures and 82.8% of Education Fund expenditures.
Actual health insurance claims and expenses totaled $3,200,000 for and decreased $631,000 from
The 2018 budgeted health insurance expenditures are $3,800,000 which is an 18.7% increase from and a 4.2% increase from
The Operations and Maintenance Fund contains $1,450,000 for capital projects and design fees. The specific projects are shown on Page 15 of this presentation.

8. Assumptions
Revenues
Real Estate Tax Collections will be at 99.0% of extension.
Property Tax Revenue in is budgeted to increase by $460,400 in the Education Fund and $181,700 in the Operations and Maintenance Fund over levels.

9. Assumptions
Revenues
Corporate Personal Property Taxes are budgeted at $1,300,000, a decrease of $100,000 from the actuals .
In FY 16, all CPPRT was placed in the O&M Fund except for the required $111,000 in the IMRF Fund.
In FY17, $150,000 of CPPRT revenue was placed in the Education Fund, and an additional $89,000 was placed in the IMRF Fund.
In FY18, $550,000 of CPPRT revenue is budgeted in the Education Fund, $450,000 in the O&M Fund and $300,000 in the IMRF Fund.
The O&M Fund has a CPPRT budget of $450,000 compared to FY17 actual revenue of $1,057,000.

10. Assumptions
Revenues
GSA is budgeted to be $1,316,400 and is budgeted in the Education Fund only.
Federal revenue is budgeted at the same level as the actuals.
Three State categorical payments were received in and only 2 payments are budgeted in at this time.

11. Assumptions
Revenues
State Revenue as a % of Total Revenue in combined funds is budgeted at 6.1%.
A 3rd State payment would increase the budgeted revenue by $287,000 in the Education Fund and $65,000 in the Transportation Fund
At the end of , the State of Illinois was behind two categorical payments from the FY17 year totaling $726,000.

12. Assumptions Expenditures
Total salary cost in Combined Education, Operations & Maintenance and Transportation Funds increased by $892,000 or 5.0%.
New positions budgeted include 2 new teachers at Lincoln School (6th grade and PIP), 1 new teacher at MJHS (STEM classroom), .6 FTE at MHS, a school psychologist and social worker.
In addition 1.5 positions that were being paid through consulting contracts in FY17 were added back as salary in FY18 (RtI Coordinator and ELL Coordinator).

13. Assumptions
Tuition expenditures paid by the District are budgeted to decrease by $28,000 or 2.5%. FY17 Tuition expenditures increased over FY16 levels by $317,000 or 38%.

14. Assumptions Expenditures
IMRF employer contribution decreased slightly from 10.34% to 10.13%.
We will enter into a new 5 year lease for buses in FY18 for $100,000.
A new van for the transportation department will be purchased in FY18.

15. Assumptions Capital Projects
Life Safety projects and architect fees - $385,000
Asphalt and roofing work - $290,000
Door hardware and frame replacement - $141,500
Floor tile abatement and replacement - $71,100
Lincoln School window replacement - $70,250
MHS elevator replacement - $68,150
MHS masonry work - $53,000
MHS Coaches Office - $25,000
Bertha Frank LED lighting - $25,000
Design and architect fees - $107,000

16. Assumptions
All capital expenditures to complete the referendum construction are budgeted in Fund 60. Total expenditures in FY18 budget are $3,200,000.

17. MORTON COMMUNITY UNIT SCHOOL DISTRICT 709
TENTATIVE BUDGET
SCHOOL YEAR
BUDGET
REV OVER (UNDER)
REVENUE
EXPENDITURES
EXP & TRANSFER
FUND DESCRIPTION
FOR
TRANSFERS
EDUCATION
$ ,733,900
$ ,689,934
$ ,966
$ ,966
OPERATIONS & MAINTENANCE
4,424,050
4,415,318
8,732
BOND & INTEREST
1,271,100
1,270,577
523
TRANSPORTATION
860,800
1,084,995
(224,195)
MUNICIPAL RETIREMENT / SS
1,065,300
1,040,542
24,758
FUND 60
10,000
3,199,995
(3,189,995)
WORKING CASH
301,250 -
TORT FUND
411,500
398,335
13,165
FIRE PREVENTION - LIFE SAFETY
100
55,800
(55,700)
$ ,078,000
$ ,155,496
$ (3,077,496)
$ (3,077,496)

18. Morton Unit School District 709
FY 2018 TENTATIVE BUDGET
Fund No. 1.
Education Fund
Fund Balance
$17,374,969
Anticipated R & R
$26,733,900
Anticipated Expenditures
$26,689,934
Excess-Rev. / Expenses
$43,966
Balance
$17,418,935
Fund No. 2.
Operation, Building,
$6,180,096
Maintenance fund
$4,424,050
$4,415,318
$8,732
$6,188,828
Fund No. 3.
Bond & Interest Fund
$100,677
$1,271,100
$1,270,577
$523
$101,200
Fund No. 4.
Transportation Fund
$1,321,616
$860,800
$1,084,995
-$224,195
$1,097,421
Fund No. 5.
Municipal Retirement
$506,575
Fund
$1,065,300
$1,040,542
$24,758
$531,333
Fund No. 6.
Capital Projects
$3,542,319
$10,000
$3,199,995
-$3,189,995
$352,324
Fund No. 7.
Working Cash Fund
$2,227,275
$301,250 $0
$2,528,525
Fund No. 8.
Tort Cash Fund
$125,575
$411,500
$398,335
$13,165
$138,740
Fund No. 9.
Fire Prevention and
$55,799
Safety Fund
$100
$55,800
-$55,700
$99

19. 2018
Fund Balance
Exp
Ed Fund
$17,418,935
$26,689,934
O&M Fund
$6,188,828
$4,415,318
Trans Fund
$1,097,421
$1,084,995
WC Fund
$2,528,525 $
$27,233,709
$32,190,247
combined days in reserve
305
combined months in reserve
10.2
2017
$17,374,969
$24,926,426
$6,180,096
$3,889,007
excl land
$1,321,616
$1,089,340
$2,227,275
$27,103,956
$29,904,772
326
10.9
2016
$15,990,428
$25,160,428
$6,538,878
$8,015,694
$1,401,756
$1,023,180
$3,445,025
$27,376,087
$34,199,302
288
9.6

22. BUDGET SUMMARY WORKSHEET
EDUCATION FUND – EXPENDITURES ** Estimate
ACTUAL
ACTUAL**
BUDGET
TOTAL SALARIES
$ ,260,900
$ ,967,600
$ ,785,400
TOTAL EMPLOYEE BENEFITS
$ ,227,900
$ ,572,500
$ ,316,500
TOTAL PURCHASED SERVICES
$ ,586,100
$ ,616,700
$ ,805,200
TOTAL SUPPLIES
$ ,300
$ ,700
$ ,000
TOTAL EQUIPMENT
$ ,339,700
$ ,200
$ ,300
TOTAL OTHER OBJECTS
$ ,500
$ ,201,700
$ ,189,500
TOTAL EDUCATION FUND EXPENDITURES
$ ,160,400
$ ,926,400
$ ,689,900
NEED TO UPDATE

25. BUDGET SUMMARY WORKSHEET
OPERATION & MAINTENANCE FUND – EXPENDITURES ** Estimate
ACTUAL
ACTUAL**
BUDGET
TOTAL SALARIES
$ ,492,300
$ ,406,100
$ ,465,900
TOTAL EMPLOYEE BENEFITS
$ ,600
$ ,500
$ ,900
TOTAL PURCHASED SERVICES
$ ,200
$ ,900
$ ,700
TOTAL SUPPLIES
$ ,700
$ ,400
$ ,900
TOTAL EQUIPMENT/CAPITAL
$ ,096,900
$ ,147,100
$ ,268,900
TOTAL LAND ADDITIONS
$ ,858,300
$ ,507,300 $
TOTAL OPERATION & MAINTENANCE FUND EXPENDITURES
$ ,874,000
$ ,396,300
$ ,415,300
NEED TO UPDATE

31. Future Considerations
State Budget
Property Tax Freeze
Pension Reform
Local Economic Growth
5 Year Maintenance Plan
Facilities Plan