Park Ridge CCSD 64 consultant: district surplus likely to narrow; board urged to build reserves

An outside financial consultant told the Park Ridge CCSD 64 Board of Education on Oct. 16 that the district’s historical surpluses are likely to narrow in the coming years and recommended strengthening reserves to guard against tax‑collection delays and rising costs.

Rob, an outside finance consultant, presented nine years of audited and unaudited district finances and projections. He said revenues have grown roughly 3.5% annually while expenses grew about 3.1% over the same period, producing aggregate surpluses of about $27.4 million since 2017. The district has also invested about $102.8 million in facilities since 2017, he said, and used roughly $44.3 million of fund balances and bond proceeds for that work.

"Your revenues have grown at a rate of 3 and a half percent a year on average. And your expenses 3 and a half 3.1%. That's a good thing," Rob said. He warned that several structural factors could reverse that trend: real estate tax growth is tied to the consumer price index (CPI), the district plans $4 million a year in capital commitments after current projects, and personnel costs (salaries and benefits) account for roughly 76% of expenditures.

Why it matters: the district’s board policy currently sets a minimum reserve target of 108 days of operating costs; the Illinois State Board of Education guidance used for financial profile scoring favors about 180 days. Rob said the district’s reserves are healthy relative to many districts but below the 180‑day level that would improve its state financial profile score and reduce vulnerability to cash‑timing problems.

Key projections and assumptions - Current fund balance: Rob reported fund balances near $43.7 million (unaudited for 2025) and projected that, under the baseline assumptions, balances would grow modestly to about $46.3 million despite a $20 million additional capital plan. He stressed that days of reserves would decline because projected expenditures grow faster than revenues, lowering days‑on‑hand toward roughly 145 days in his baseline. - Revenue drivers: roughly 83% of district revenue comes from real estate taxes. Rob said the district could levy up to 2.9% for the 2025 levy (the highest allowable increase given current CPI assumptions), with year‑to‑date trends near 2.6%. He projected long‑run revenue growth closer to historical averages (around 2.4%) in his baseline and as low as 1.7% in more conservative blends. - One‑time and program changes: the expiration of an Uptown TIF is expected to produce about $2.0 million in additional tax capacity but will remove approximately $1.1 million the district had been receiving, creating a net new revenue effect of about $900,000. The district is also phasing out kindergarten fees, which Rob modeled as a $1.1 million recurring revenue reduction. - Expenditure assumptions: salary and benefit growth are the principal cost drivers. Rob modeled benefits growth at about 5.2% annually and assumed modest staffing declines and roughly 50 teacher retirements across the projection period, which would offset some salary pressure.

Risks and recommendations Rob flagged two near‑term risks the board should weigh: (1) a Cook County software problem delaying tax bill issuance and collections and (2) the gap between the district’s current reserves and the 180‑day target favored by state scoring. He noted that Cook County’s delayed property tax billing could push receipts from the typical August/September window into December or later.

"You have a $7,000,000 bond payment on December 1," Rob said. "You spend about...7 or $8,000,000 a month. If you think you have...$8,000,000 in bills in November and $8,000,000 in December, that's 16,000,000. You have a $7,000,000 bond payment December 1. That gets you really close to 0." He recommended the board plan for the possibility of issuing tax anticipation warrants (short‑term borrowing) if county collections are late, and to consider a formal goal of increasing fund balances toward 180 days to reduce that vulnerability.

Rob’s three primary recommendations were: (1) avoid committing annual expenditures plus capital allocations that exceed annual revenue, (2) set a goal to grow reserves toward 180 days, and (3) repeat the district’s fiscal projection process annually to update assumptions such as CPI, state grants and other variables.

Context and next steps Superintendent and staff said they will continue to refine numbers and return with additional detail next month. The district’s municipal advisor and underwriter were scheduled to discuss the debt profile at an upcoming meeting; speaker comments noted that stronger reserves support lower borrowing costs when the district markets bonds.

Votes at a glance - Consent agenda approval (motion: "I move that the board approve the consent agenda for 10/16/2025 as presented."): approved. Motion moved by a board member (name not specified in transcript), seconded by Board Member Rachel (last name not specified). Vote: Milligan — yes; Rankin — yes; Kempel — yes; Klein — yes; Georgakus — yes; Doubleday — yes.

Ending Rob and district staff said they will continue monitoring Cook County’s tax timing and update the board as numbers change; they recommended the board treat reserves growth as a strategic goal so capital commitments and operating choices align with that target.