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District finance presentation: board hears that reserves and evidence‑based funding underpin stability
Summary
Finance staff told the Bremen CHSD 228 board that the district is in a strong financial position with 204.97 days cash on hand, outstanding QSCB debt of $50 million, and federal funding comprising roughly 3.1% of total revenue. Staff outlined risks and options for addressing future uncertainty.
District finance staff presented an overview of Bremen CHSD 228's fiscal position on April 15, telling the board that the district holds a historically strong reserve position while noting several uncertainties that could affect future years.
Why it matters: The presentation framed the FY2026 budget discussion and explained how local property taxes, state evidence‑based funding and federal grants combine to support district operations.
What presenters told the board - Accounting basis and recognition: Staff said the district operates on a cash‑basis accounting system and is designated “recognition” by the Illinois State Board of Education. - Fund balances and cash: As of June 30, 2024, the district had 204.97 days cash on hand (state stability standard cited as 90 days), and working cash was held separately as reserves. - Debt and borrowing capacity: The only outstanding debt cited was a $50,000,000 Qualified School Construction Bond (QSCB); staff said about 61% of long‑term debt capacity remains available and no short‑term debt is outstanding. - Revenue mix: Federal grants (Title programs, IDEA, Perkins) comprise roughly 3.1% of district revenue; local revenue (property taxes) and state evidence‑based funding make up the remainder, with property taxes noted as subject to the Property Tax Extension Limitation Law. - Reserve management: Staff described three planning approaches for uncertainties — evaluate programs, optimize fund balances and consider borrowing — and emphasized prioritizing instructional and student supports when deciding tradeoffs.
Risks and open items Finance staff listed variables that could affect future budgets, including contract negotiations for salaries, health insurance premium changes, vendor contract costs and potential facility incidents that would require unexpected repair or insurance claims. The presentation noted the district's ability to borrow under its existing debt service extension base but recommended finding the “sweet spot” between maintaining fund balances, debt levels and program continuity.
What the board heard next Board members asked questions and thanked staff for the detailed briefing. Administrators said they would continue to present updates and monitor legislation and state-level changes that could affect funding.
Context and background The presentation placed recent ESSER expenditures in context (administrators said ESSER funds have been spent and allocated) and contrasted the district's fund balances with five nearby districts. Staff said the district's financial picture is “the best it has ever been” but cautioned that future challenges remain possible.
