April2017Operating&CapitalFundsReferendaFebruary12,2017SummaryUpdate

DRAFTWIP–FORDISCUSSIONPURPOSESONLYRev.11February2017

2

WHYAREWEHERETODAY?

OurCoreMission:Toprovideahighqualitypubliceducationto

over6,000children SurgingEnrollment

DecliningRevenues

ImmediateChallenges

CriticalNeeds

Schoolbuildingsthataresafe,functional,accessible,andofsufficientcapacity

EquityInclus

ion

WholeChildFocus

PositiveLearningEnvironment

OperatingFunds

ReferendaQuestion

CapitalFacilitiesBond

ReferendaQuestion

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D97:ATENYEARHISTORYOFENROLLMENTGROWTH

q  Averagedailyattendanceup24%(1,080kids)since2007

q  Fallenrollmentup

10%(549kids)sincereferendumyear2011,exceedingprojectionsby400students

q  Fall2016enrollmenthasbrokenthe6,000markforthefirsttimein40years

5,4215,506

5,577

5,7505,856

5,914 5,891

6,055

5,0815,129

5,261

5,459 5,4985,567 5,582

5,700fcst

4,000

4,500

5,000

5,500

6,000

6,500

2010 2011 2012 2013 2014 2015 2016 2017

NUMBER

OFST

UDEN

TS

YEAR

FallHousingEnrollmentandAverageDailyAttendance

FallHousingEnrollment Avg.DailyAttendance

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SCHOOLSCONTINUETODRIVEPOPULATIONGROWTHANDRETENTIONINOAKPARK

WhydopeoplecometoOakPark?

QUALITYSCHOOLS

DIVERSITYinallofits

forms

GEOGRAPHY(includingtransit)

Source:NationalCitizenSurvey,NationalResearchCenter,Inc.(NRC)andInternationalCity/CountyManagementAssociation(ICMA)2015

“SchoolsarebyfarthenumberonereasonpeoplemovetoOakPark.”

JohnLawrence,PresidentOakParkAreaAssociationofRealtors

4thAnnualIGOVAssembly,October2016

OakParkResidentResponses–2015NationalCitizenSurvey

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WHYREVENUEHASDECLINED

PropertyTaxes68.7%

OtherLocal6.7%

GeneralStateAid

11.4%

OtherState7.2% Federal

6.0%

2016BudgetedRevenues- OperatingFundsD972016BudgetedRevenues–OperatingFunds

D97-ElementarySchools36%

D200-OPRF24%Triton

College3%

Township3%

WaterReclama?on

3%

Parks5%

County&Other5%

Library6% Village

15%

2015Distribu>onofOakParkPropertyTaxes

Source:OakParkTownshipAssessor’sOffice,Jan.2016

Issue#1:PropertyTaxes~69%ofD97Revenue

u  Illinoispublicschooldistrictsrelyheavilyonlocalpropertytaxesforfunding

u  ThePropertyTaxExtension

LimitationLaw(PTELL),a.k.a.“TaxCap”lawofCookCounty,limitsrevenuegrowthfromlocalpropertytaxestothelesserofinflation(CPI)or5%o  ForD97ourannualproperty

taxgrowthwaslimitedtoanaverageof1.5%overthelastfiveyears

Issue#2:StateFunding~19%ofD97Revenue

u  Duetothebudgetcrisis,

thestatehasdiscountedandfrozenpayments

§  Thisrepresentsapproximately$9MMto-dateoflostrevenuesince2012

§  Thestatewillnotmakeuptheshortfall

u  Inaddition,thestatehas

eithernotpaidallofthemandatedcategoricalpaymentsintheyeartheyaredueormadelatepayments•  Currentlyvouchers

awaitingcomptrollerprocessingtotal~$3.8MM

Thegrowthinpropertytaxrevenuesdoesnotincreaseatthesamerateastheincreaseinstudent-drivenexpenditures

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REVENUESSINCE2011

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

ActualsthroughFY2016-Revenue/Student

60.0

65.0

70.0

75.0

80.0

85.0

90.0

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

ActualsThroughFY2016-InMillions

Revenueshavedeclinedonaper-studentbasisforthepastfouryears

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REVENUES,EXPENDITURES,ANDSTUDENTSSERVED

4,900

5,000

5,100

5,200

5,300

5,400

5,500

5,600

5,700

$55,000,000

$60,000,000

$65,000,000

$70,000,000

$75,000,000

$80,000,000

$85,000,000

2010 2011 2012 2013 2014 2015 2016

NUMBER

OFST

UDEN

TS

DOLL

ARAMOUNT

YEAR

OPERATINGREVENUES&EXPENDITURESVS.AVERAGEDAILYATTENDANCETRENDS

AVG.DAILYATTENDANCE REVENUES EXPENDITURES

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PROJECTEDOPERATINGFUNDBALANCEIFNOACTIONISTAKEN

$31,661,182

$35,356,154 $35,935,967

$33,146,985

$24,293,712

$11,645,018

$3,227,759

$(7,139,140)

$(19,327,884)

$(31,397,288)

$(47,264,132)

$(60)

$(50)

$(40)

$(30)

$(20)

$(10)

$-

$10

$20

$30

$40

$50

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

Millions

ActualandProjectedYear-EndOperatingFundBalances

FYEnd

ForecastAssumptions

Ø  Revenues§  Propertytax

revenueswillgrowattherateofinflationat2%

§  Stateaidwillremainflat(GSAwillnotbeprorated)

§  Federalfundswillremainflat

Ø  Expenditures§  Overallannualized

expendituregrowthisprojectedat2.6%overthenextfiveyears

§  Apensionshiftisnotincludedintheassumptions

Source:Forecast5Analytics,January2017

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ISD97AGOODSTEWARDOFPUBLICFINANCES?

Ø  Since2008thedistricthasmaintainedtheFinancialOversightandReviewCommittee(FORC),astandingboardcommitteecomprisedofoutsidecitizenadvisorswithexpertiseinbothpublicandprivatefinancialmanagement.FORCactsasanindependent,secondsetof“eyesandears”onthedistrictsfinances,expenditures,revenues,budgets,fiscalpolicies,anddecision-making.

Ø  TheD97boardisjustoneofahandfulofdistrictsstatewide(among850)toearntheprestigiousIllinoisAssociationofSchoolBoard’sbiennialGovernanceRecognitionforsoundgovernance,receivingtheawardin2013and2015

Ø  ForthepastfouryearsD97hasreceivedthehighest“unqualified/unmodified”auditratingfromitsoutsideaccountants(RSMMcGladrey)

Ø  Thedistrict’smostrecentcreditratingwasAa2,amongthehighestinthestate

Ø  DevelopedinconjunctionwithFORC,D97’srobustfiscalpolicies(http://www.op97.org/BOE/Policies.cfm)areamongthestrongestinthestateofIllinois

§  Governsusesofdebt,includingregulatingtheuseofdebtforoperatingexpenses§  Tightrisktoleranceforinvestments§  Oneofonlythreedistrictsinthestatewithafundbalancetargetpolicythathasbothafloor(25%)andaceiling(75%)

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D97PERFORMANCEINMANAGINGEXPENSESVS.2011REFERENDUMPROMISESANDPROJECTIONS

Onbothatotalcostandper-studentbasis,D97consistentlymaintainedexpendituresbelowbudgetandreferendumcommitmentsdespiteanincreaseofover400studentsabovethe

enrollmentprojectionsthrough2018*

*2011enrollmentwasapproximately5,500students;currentenrollmentfor2016hasalreadyexceededthe2018-projectedlevelof6,000students

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

ExpendituresPerStudent2011Projectionsvs.2016Actuals

ReferendumProjections(1/18/2011)-Expenditures/Student

ActualsthroughFY2016-Expenditures/Student

60.0

65.0

70.0

75.0

80.0

85.0

90.0

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Expenditures-2011Projectionsvs.2016Actuals

ReferendumProjections(1/18/2011)-InMillions

ActualsThroughFY2016-InMillions

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PEERDISTRICTCOMPARISON:PER-PUPILSPENDING

$10,854$11,069$11,101$11,410$11,474$11,727$11,901$12,100

$12,636$13,013

$13,412$13,744$13,923$13,978$14,150$14,386$14,509

$15,939$15,945

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000

NewLenoxSD122WaucondaCUSD118

TroyCCSD30COakLawn-HomeSD123

AntiochCCSD34WoodlandCCSD50GrayslakeCCSD46LaGrangeSD102

WheatonCUSD200GlenviewCCSD34GlenEllynSD41ElmhurstSD205OakParkESD97

HawthornCCSD73EvanstonCCSD65

CCSD93LombardSD44

BarringtonCUSD220OrlandSD135

AMOUNTPERSTUDENT

SCHOOLDISTRICT

OPERATINGEXPENDITURESPERPUPIL-FY2015

Averageoperatingexpendituresperpupilamongpeerdistrictsis$13,014;D97iswithin7%ofaverage

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PEERDISTRICTCOMPARISON:PERPUPILEXPENDITUREGROWTH

-0.6%-0.6%-0.3%

0.0%

0.6%0.9% 1.1%

1.3%1.6%

1.9%2.1% 2.3% 2.3%

2.8% 2.9%

3.7%4.1%

4.3%

5.2%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

pERCENTAGECHANGE

SCHOOLDISTRICT

OPERATINGEXPENDITURESPERPUPIL(5YEARANNUALIZED%CHANGEFY2010-FY2015)

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PEERDISTRICTCOMPARISON:PERPUPILLONG-TERMDEBT

$2,274

$2,806

$3,316

$3,396

$4,193

$4,753

$4,953

$7,765

$10,206

$10,431

$11,091

$12,998

$14,581

$15,076

$17,229

$17,742

$18,415

$19,195

$29,673

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

OrlandSD135

AntiochCCSD34

GlenviewCCSD34

LombardSD44

OakParkESD97

CCSD93

GlenEllynSD41

BarringtonCUSD220

HawthornCCSD73

WoodlandCCSD50

EvanstonCCSD65

LaGrangeSD102

WheatonCUSD200

ElmhurstSD205

OakLawn-HomeSD123

WaucondaCUSD118

TroyCCSD30C

GrayslakeCCSD46

NewLenoxSD122

AMOUNTPERSTUDENT

SCHOOL

DISTRICT

LONG-TERMDEBTPERSTUDENT-FY2015

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UNDERSTANDINGOPERATINGFUNDS

u OperatingFundspayforthebasic,day-to-dayexpensesofprovidingthecoreK-8educationinD97–80%ofwhichissalaries&benefits

u Includessalaries&benefits,utilities,busservices,meals,textbooks,classroomsupplies

u Currentfundinglevelsprovideforstaffandprogramstosupportadistrict-wideaverageclasssizeof21

Source:IllinoisStateBoardofEducation,2016

D97AverageClassSizesbyGrade-2016

66%

13%

11%

5%

2% 3%

OakParkSD97-FY2016OperatingExpenses

Salaries

Benefits

PurchasedServices

Supplies&Materials

Dues,Fees,&Tuition

TerminationBenefits

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WHATTHEDISTRICTISREQUESTING–FIRSTQUESTIONOperationalBallotQuestion:Thisquestionreferstothecostsofeducatingstudents

andthedeliveryoftheeducationalexperiencetochildren

OperatingFundsReferendumProposedLimitingRateIncrease 1.000%

ProposedNewRate $4.982%

ProposedD97LevyIncrease $13,344,415

ProposedNewD97OperatingLevy $66,481,876

Increasepercurrent$1,000oftaxbill $74

Increaseforcurrent$10,000annualtaxbill

$740

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CURRENTNEEDSTOBEADDRESSEDBYTHECAPITALFACILITIESBONDREFERENDUM

1. Alleightofthedistrict’selementarybuildingsrequiresignificantmaintenanceandrepairworktosustainsafety,structuralintegrity,andfunctionalityforthenext~20years

Ø  Averageageofelementarybuildingsis85years;newestschoolis65yearsold

Ø  Lastmajormaintenance&repairinvestmentsoccurredin2000-2002

2.  OnlyhalfofD97’stenbuildingsarefullyaccessible

3.  Classroommodernization4. EnrollmentsurgeisnecessitatingphysicalcapacityexpansionsatHolmes,Lincoln,andLongfellow

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Category Description 2018 2019 2020 2021 Total

ü  Maintenance&RepairtoSupportCoreFunctionalityofBuildings

ü  AccessibilityforAllStudents

§  Accessibilityimprovements§  Firealarmupgrades§  Lightingsystems§  Powerdistributionupgrades§  Plumbingrepairs§  Roofrepairs§  Boilerrepairs§  Structuralrepairs§  Tuckpointing

$11.7MM $13MM $12.9MM $37.6MM

ü  ClassroomModernization

ü  CapacityExpansions

§  Enhancedlearningspaces*§  Classroommodernization§  Conversionofformercomputerlabs§  ExpansionsatLincoln&Longfellow§  Upgradesand/orinstallationof

HVACsystems(temperaturecontrol)

$4.7MM $9.6MM $4MM $1.7MM $20MM

Total $4.7MM $21.3MM $17MM 14.6MM $57.6MM

PLANNEDFACILITIESCAPITALINVESTMENTSBYCATEGORYANDYEAR

*KeyinvestmenttosupportVision**Holmesexpansionworkin2018tobefundedbyDSEB

TentativeProjectTiming>> Holmes**Longfellow

BeyeLincolnMann

HatchIrving

Whittier

HolmesLincoln

Longfellow

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WHATTHEDISTRICTISREQUESTING–SECONDQUESTION

Shall the Board of Education of Oak Park School District Number 97, Cook County, Illinois, improve the sites of, build and equip additions to, and alter, repair and equip school buildings of said School District and issue bonds of said School District to the amount of $57,500,000 for the purpose of paying the costs thereof?

YES

NO

CapitalFacilitiesBondQuestion:Thisquestionreferstoimprovingthecondition,size,andmaintenanceoftheschoolbuildings

BuildingReferendumChangein

currenttaxbillifproposed

$57.5MMbondauthorizationis

approved

$0

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EXECUTIVESUMMARY

Basedonextensiveplanningandanalysisoverthepastyear,theboardhasdeterminedtoruntworeferendaballotquestionsontheApril4,2017CookCountyConsolidatedGeneralElection:

OperatingFunds FacilitiesCapitalExpenditure(capex)Funds

BallotQuestion:

1.000%limitingratepropertytaxextensiontoprovideadditionalfundsforoperatingexpenses,

generatinganadditional$13.3MMannually

Authorizationtoissueupto$57.5MMin20-yearcapital

infrastructurebonds

What’sitfor?

OperatingFundspaytheday-to-dayexpensesofrunningadistrictandeducatingchildren.Itincludessalaries,benefits,instruction,utilities,technology,food,transportation,supervision,programs,custodians,specialeducationservices,andcurriculummaterials

FacilitiesCapexFundspayforbasicbuildinginfrastructure,includingmaintenanceandrepair,state-mandatedLife/Safetyupgrades,accessibilityimprovements,expansions,andmodernizations

Whyisitneeded?

§  Ahistoricsurgeinenrollment(up24%since2007;40-yearhighof6,055kidsenrolledinfall2016),combinedwith

§  Decliningrevenues

§  Eightofthedistrict’stenbuildingsarefacingsignificantmaintenanceandrepairneedsthatincluderoofing,boilers,electrical,plumbing,andfirecodeworkoverthenextfouryears

§  Expansionsareneededatthreeelementarybuildingsduetoincreasedenrollment

§  Classroommodernization,accessibilityimprovements,andclimatecontrolareplannedforalldistrictbuildings

Netimpacttotaxpayers:

$74per$1,000(or$740per$10,000)ofcurrenttaxbill

None;thedebtpaymentswillessentiallyrenewtheexistingcapitalbondsissuedin1999thatfundedthemiddleschoolsandelementarybuildingupgrades

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KEYDELIVERABLESOFREFERENDASUCCESS

Preservehighqualitypubliceducationtoover6,000

childreninOakPark

Maintainclassroomsizesbelow

stateaverage

Extendfunctionality,safety,andstructuralintegrityofelementarybuildingsforthenext~20

years

Continuetoattractandretainhighcaliberteachers

ProvideresourcestoachieveVision,includingreducingthe

“OpportunityGap”

Modernizeclassrooms,includingsupportforNextGensciencecurriculum

Enabletemperature-controlledlearningspacesforallelementarybuildings

Provideaccessibilityatalldistrictschools

Allowforexpansionofbuildingsto

accommodatehistoric

enrollmentsurge

Ensurefinancialstabilityforthedistrictthrough

2022

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“DOMINOEFFECT”CONSEQUENCESOFFAILURE

2017

2018

2019

100%ofDSEBdollarsmustbereservedfor

operatingfunds

Operatingquestionfails,Capexpasses

Nocuts

Continueddeficitspending

Structuraldeficitcondition

Statewatchlist

Payrollnotmet

Stateintervention(lossoflocalcontrol)

$4MMofimmediatecuts,26retiringteachersnotreplaced

$6-9MMofadditionalcuts§  70-80FTEstaff

reduction§  Allnon-core

programs/curriculaeliminated

Avg.classsizeincreasetohigh

20’satelementaryschools,low30’satmiddleschools

Bothquestionsfail

Alloperatingcutsasdescribed

100%ofDSEBdollarsmustbereservedforoperating

funds,Life/Safety&emergencyrepairs,butwillnotbesufficienttocovermaintenance.Allsystems

willoperatetofailurebeforerepair.

Nobuildingexpansions,accessibilityupgrades,

classroommodernizationortemperaturecontrol

Visionunattained

Redistrictingand/orgradecenters

Avg.classsizeincreasetohigh20’satelementary

schools,low30’satmiddleschools

Capexquestionfails,Operatingpasses

100%ofDSEBdollarsmustbereservedfor

Life/Safety&emergencyrepairs

Temporaryclassroomson

playgrounds,ORredistricting,ORgradecenters

Holmesexpansioncancelled

NoexpansionsatLongfelloworLincoln

Noclassroommodernization,accessibilityupgrades,or

temperaturecontrol

Visionunattained

Largerclasssizeseliminateneedfor

expansionsatHolmes,Lincoln,

Longfellow

Visionunattained

Lossofcreditrating

Higherborrowingcosts

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22

VISION

OakParkElementarySchoolDistrict97willcreateapositivelearningenvironmentforallstudentsthatisequitable,inclusiveandfocusedonthewholechild

2016-17GOALSTOSUPPORTTHEVISION(THE“BIGROCKS”):

1.  AlignD97systems,structures,and

processestoreflectourstatedvalueofeducatingthewholechild(e.g.weactinwaysthatreflectourunderstandingofsupportingthesuccessfuldevelopmentofeachandeverystudent)

2.  EstablishacomprehensivesystemofsupportforallDistrict97staff

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23

OAKPARKELEMENTARYSCHOOLDISTRICT97Dr.CarolKelley,SuperintendentBOARDOFEDUCATIONJimGates,PresidentAmyFelton,VicePresidentGrahamBrisbenA.RupaDattaJimO’ConnorBobSpatzHollySpurlockSherylMarinier,BoardSecretary260MadisonSt.OakPark,IL60302(708)524-3000www.op97.org

THANKYOU!

Forfollowupquestionsand

informationregardingthereferenda,

pleasecontactusorvisit:

http://www.op97.org/d97referenda/index.cfm