Alden-Hebron School District 19 Board of Education met Dec. 1.
Here is the agenda provided by the board:
I. Call to Order - Pledge of Allegiance
II. Roll Call
III. Correspondence
IV. Communications
NOTE: "Communications" are a time for community members and district employees to express a point of view, not to debate an issue. There will be a sign-up sheet for the public to identify their name, address, phone number, name of the organization you represent (if any) and a brief description of the topic to be addressed. According to Board Policy 2:230, comments are limited to 2 minutes. If there is an item that you would like discussed, please contact Tiffany Elswick-Superintendent, or Mike Norton-Board President, and we will consider the appropriateness of placing the item on an upcoming agenda.
1. Public Comments
2. Staff Comments
3. Board Comments
V. Consent Agenda
*Approval of November 17, 2021 Regular Meeting Minutes
VI. BUSINESS
A. FINANCE
1. Discussion of 2021 Levy *2. Approval of 2021 Levy
B. FACILITIES UPDATE
1. Tiffany update 2. Board Discussion
VII. Future Agenda Items VIII. Communications
1. Public Comments
2. Staff Comments
3. Board Comments
IX. Executive Session
For the appointment, employment, compensation, discipline, performance, or dismissal of specific employees.
X. Return to Open Session
*Consideration of any other action deemed necessary as a result of executive session.
XI. Adjournment
* Requires Board Action
NEXT MEETING: December 15, 2021 – 7:00 P.M.
Alden-Hebron Tax Levy Worksheet 2021 Tax Levy
TO BE PRESENTED 12/1/21 TO Board as O&M Optimization Option for a 4.5%
This shows levying any increase & does not require publication. in the O&M Fund plus levying less in the Trans Fund and more in the O&M Fund to be set aside for MS/HS building/repair/maint. If we did not increase our levy at all we would lose a minimum $103,169 and that would be lost forever under the current tax cap laws.
New Growth = .75% CPI = 1.4%
per county assessor per county assessor
Historical Information regarding EAV
While we have adequate fund balances at this time, many factors suggest we cannot afford to lose money available for our schools.
The recommendation is to levy for more than what is estimated just in case there is an unexpected development and the estimate would actually be too low. It has no effect on what the taxpayer pays since the tax cap of 1.4% is in effect. This does not limit a taxpayer's increase to 1.4% but limits the taxing district to an increase of 1.4% plus new growth % over the previous year's extension.
The 2021 estimate is from the county assessor.
For 2021 the maximum increase in extension is 2.15% The assessor is estimating an increase in the extension of 2.15%. This is CPI of 1.4% and new growth allowance to reach .75 Without the cap the extension could be the 9.48%
Factors that suggest we should levy for the maximum allowed under the tax cap laws:
1. The Education Fund has almost 80% in salaries and benefits. We will be coming off a contract with the teachers and we do not know what the salary and benefit increases will be in the next five years. This year we were fortunate to see no increase in benefit costs from the insurer. Also, our teacher placement on the salary schedule tends to be at the beginning stages without a lot of retirees in the near future. As these teachers are here longer we will see larger increases due to their progression on the salary schedule. These combined increases will start to eat into the fund balances unless we see unexpected increases from the state.
2. The State, at any time, could place more of the burden for Teacher Retirement on the school districts. This has been talked about quite a bit. We have no idea how large an impact this may have but it could be significant and undoubtedly cause us to use our fund balance. The state just passed legislation that could impact our sick pay budget significantly since COVID sick pay will now be on top of regular sick pay and no matter how many times they get COVID. This is an example of how the state can lay a mandate on districts that place a new and significant burden on their budget.
3. Another major reason is that we need considerable money for the Middle School/High School building. If the increase was all placed in the Operation and Maintenance Fund it could mean more money for repairs and or more money to help in refurbishing or building a new school and thus having to ask for less of a referendum.
4. This district has been operated very fiscally responsible and money is not spent just because it is there. With all the unknowns in future budgets, it is probably a good idea to levy for the maximum available. We could levy less in Transportation and levy that in Operations and Maintenance for the reason mentioned above regarding the needs at the Middle School/High School.
5. We are still hopeful that some day the State will reactivate the Capital Needs grant that gives school districts matching dollars to build a school. The matching dollars could come from the fund balance. We are at the top of the priority list for this grant.
Attached is a page from the State regarding fund balances and what is an appropriate fund balance. To get the best financial rating from the state you must have 180 days cash on hand in the three major funds plus working cash. We have 267 days cash on hand or .75 of a year figured at the end of 2019 to compare it to the State data available. Most districts have between 180 and 359 days cash on hand. We fall in the range of most districts according to the State of Illinois. Case law has determined that 2 and 3 years of cash on hand was excessive and case law has determined that 1.81 and 1.61 years is not excessive. Ours is less than one year.
If this option is chosen by the Board, the possibility of receiving a 4.5% increase is not It will more likely be in the 2.15% increase range. The Board will need to have a resolution similar to the leased land revenue resolution in order to set this increase aside for special purposes in the O&M Fund. That can be done at the time we receive the actual amount of the extension from the county clerk.
We also need to address the Board Policy on fund balances. This is in a separate memo.
https://docs.google.com/document/d/1Cyp8N2R1lWdY25zY3GixYQFm_7lUKdmVTZ3iQr2Jlfg/edit
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