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Roselle SD 12 finance chief previews FY27 budget, flags modest draw on reserves for summer capital work
Summary
Chief School Business Official Mr. O'Hanis told the board the district expects stronger-than-projected local revenues and investment income but still plans a one‑time use of reserves—about $323,000—to support expanded summer capital projects while keeping operating funds balanced.
Mr. O'Hanis, the district's chief school business official, presented a preliminary FY27 budget framework and a 10‑month financial update to the Roselle School District 12 Board of Education, saying the district is on track to end the year with a healthy fund balance but will use a modest portion of reserves to cover expanded capital work.
"We came in at a $10.6 million fund balance," Mr. O'Hanis told the board, summarizing recent results and projections. He said local revenues have surpassed conservative projections and that investment income is contributing positively. Even so, he presented a projected net use of roughly $323,000 from fund balance to pay for an above‑normal summer capital program the board approved earlier.
The presentation explained key budget assumptions: the district uses a modified accrual accounting approach, more than 90% of projected FY27 revenue is expected from local sources (primarily property taxes), and the district is planning a negotiated personnel increase near 2.9 percent under the collective bargaining terms discussed. Mr. O'Hanis also warned that medical insurance costs are likely to rise and that state and federal grant amounts remain uncertain until final budgets are set.
Board members asked whether the $323,000 draw on reserves was locked in. Mr. O'Hanis said the figure is a projection based on current estimates and that remaining receipts (late investment income and several expected state and transportation reimbursements) could reduce the amount taken from reserves. He noted the board previously authorized up to $1.5 million for capital projects, and the current projection anticipates using a smaller portion of reserves than that earlier authorization suggested.
The CSBO walked the board through revenue and expenditure categories, including state evidence‑based funding formulas (Roselle SD 12 is in the state's tier 4) and federal grant uncertainty. He said the district plans to fund capital projects from reserves and local dollars rather than borrowing, avoiding new interest costs.
The board did not vote to adopt the budget at the meeting; Mr. O'Hanis said the district will return with updated figures and a tentative budget for public display later in the summer and a formal adoption hearing in September, when the budget will be filed with the Illinois State Board of Education.
