District 128 accepts FY25 audit; finance director warns of capital gap and rising transportation costs
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Trustees accepted the FY25 audited report and heard five‑year financial projections that show stability in near term but a $4–5 million shortfall for projected capital needs and ongoing transportation cost growth.
The Community High School District 128 Board accepted the FY25 audited financial reports on Feb. 23 and heard an extensive review of five‑year financial projections that finance staff say are stable in the near term but expose longer‑term risks.
"Part of the audit includes capital‑asset tracking," the finance director (Dan) said, describing a reconciliation delay with an outside provider that the auditors flagged as a "significant difficulty"; Dan told trustees the discrepancy was resolved after follow‑up to ensure prior‑year ending amounts matched current‑year beginning balances.
On long‑range finances, Dan summarized the district's assumptions: 89% of revenue comes from local property taxes, enrollment is expected to remain relatively stable over five years, and projections assume flat staffing levels and CPI assumptions for tax growth. He flagged two structural risks: rising transportation costs (transportation spending was described as roughly $5 million and trending upward) and a capital funding gap.
"We will not have $10 to $11 million to be able to do all of those [capital] projects," Dan told the board, adding that the district is likely to afford about $6 million of the priority items in the five‑year plan and therefore must prioritize work or seek new funding. He recommended a facility condition assessment (FCA) to move from system‑level to component‑level capital planning so the district can identify exact roof, HVAC and equipment replacement needs and improve long‑term decision making.
Trustees asked for more granular transportation data (contracted services vs. athletics vs. special education) and suggested preventive maintenance tracking and an FCA to avoid escalating deferred maintenance costs.
Next steps: Finance staff will provide supporting audit documentation per a trustee request and the administration will return with more detailed transportation and capital‑project prioritization and options for funding or scheduling work.