Finance committee reviews final FY25 budget showing $4.8 million capital-driven gap

The finance committee reviewed the district's final fiscal 2025 budget and heard that total expenditures across all funds will exceed revenues by about $4.8 million, driven mainly by capital spending on the junior-high renovation. Presenter said that excluding capital projects the district's operating funds (education, operations & maintenance, transportation and working cash) would show an approximate $600,000 surplus, which he described as a balanced operating budget.

Committee members were told local property taxes remain the district's primary revenue source and that the levy approved in December 2023 rose just over 5 percent, a change reflected line-by-line in the final budget. Federal revenues dropped roughly 6 percent compared with the prior year, the presenter said, attributing much of that decline to diminishing ESSER pandemic-era funds (about $200,000 projected for FY25). The presenter also noted employee health-insurance costs were modeled as about an 8 percent increase and that the bargaining agreement before the board averages roughly a 5.5 percent salary increase for teaching staff; the budget includes a roughly 1 percent salary cushion for in-year contingencies.

On the expense side, purchase-services spending rose about 16 percent after the district selected a new food-service vendor via RFP; the presenter said the vendor was the lowest bidder but carried higher costs than the prior vendor and that higher student participation would increase meal counts (partially offset by federal reimbursements). Transportation costs were increased conservatively to reflect greater special-education and students-in-transition needs. The presenter said the Illinois Department of Revenue's estimate for corporate and personal property replacement taxes fell about 20—20-30 percent, reducing projected revenue by about $300,000 versus last year.

A committee member asked why the projected excess of expenditures over revenues had increased from about $4.2 million in April to $4.8 million in the final numbers. The presenter said the variance was the net effect of finalizing levy figures (about $300,000), timing of the last ESSER receipts entering FY25, the slightly higher collective-bargaining settlement and additional transportation and tuition costs.

The presenter reviewed estimated fund balances at June 30, 2025 relative to the district's fund-balance policy (a target range of 90 to 180 days of expenditures). He said the education fund was within the target range while the operations & maintenance fund was above it (about 257 days). He described options the district might use going forward, including levy adjustments between funds, transfers, or using capital-project funds for certain projects to manage balances. The final budget document and a resolution were in the board packet and the presenter said a public hearing would be held during the meeting that evening for any public comment.

The committee did not take a formal vote on these items in the excerpted discussion; presenters offered to provide additional details on bond balances and other line-item questions after the meeting.