District 41 Finance Explained


Dear Community,

Over the past couple of weeks, the District has hosted several engagement opportunities with the community. During conversations about the referendum, individuals expressed interest in knowing more about school finance. I hope this provides some background and more detail for those interested.

We will be holding two more Referendum/Facilities Information Sessions.

Monday, February 27, 7 p.m. at Hadley
Tuesday, March 7, 7 p.m. at Hadley

All community members are welcome to attend! We will talk about proposed projects, provide financial information, as well as give tours of Hadley.

You can find more information about everything related to the referendum on our website www.d41.org/facilityplan

Thank you for your continued support!
Dr. Paul Gordon
Superintendent




Based on all of the data and feedback collected throughout the facilities planning process, the Glen Ellyn School District 41 Board of Education voted 6-0 to put a $24.2 million bond measure on the April 4, 2017 ballot.

In 2018, the District will pay off bonds that funded past building projects. This reduction of debt payments would give the community an opportunity to invest the $24.2 million and address some facilities needs at our schools with a tax decrease over the taxes paid in 2016.

If a community member pays $8,000 in 2016, the District 41 debt portion of their tax bill would decrease by approximately $85.

If the referendum does not pass, for a community member who pays $8,000 in 2016, the District 41 debt portion of their tax bill would decrease by approximately $199.


The 20-year total principal and interest payments for the $24.2 proposed referendum bonds at an estimated all in true interest cost of 4.230% will be $40,873,000 million. Interest rates are subject to change and this information is intended as an estimate only; the actual interest rate will be determined at the time of the bond sale if the referendum is successful.

Click Here for more information presented by William Blair & Co.

 


Proposed Projects

If the community supports the referendum, the following projects would be completed. Work would begin in the Spring of 2018.

Hadley Junior High School --  $17 million
  • Replace 10 portable classrooms with two-story addition
  • Enhanced music/auditorium solution (including new music space in the addition)
  • Infrastructure and roofing  
  • Bus lane on district property
  • ADA accessible entrances to bathrooms

Elementary Schools --  $7.2 million
  • ADA accessible entrances to bathrooms
  • Infrastructure and roof repair
  • Secure entry at Churchill
  • Increase lunch capacity at Abraham Lincoln School in the telemation area and outdoor playground to solve overcrowding

  • All in costs include costs for contingency, fees, permits, insurance, etc.




School Funding

District 41 receives the majority of property taxes in 2 installments.  The first is received in mid-June (about $22 million) and the second is received in mid-September (about $18 million) while the remainder flows sporadically, as paid by property owners ($1 milliion in October), etc. The June payment arrives two weeks before the end of the fiscal year and is intended to fund the next school year, beginning on July 1.  This revenue is recognized as deferred revenue in the Financial Statements. The receipt of State and Federal aid is unpredictable.  The State of Illinois is far behind on its payments.  Our lowest cash balance occurs in late May of each year and generally falls to about $12 million.



Reserves

The Illinois State Board of Education recommends and Board policy directs that districts maintain a 25% fund balance. D41 strives to meet this measurement criteria and our fund balance is near the 25% recommended level.

The total District 41 fund balance per the 6/30/2016 Comprehensive Annual Financial Statement is $14,866,662. The fund balance is divided between restricted and unrestricted funds. Of the $14,866,662 in fund balance, $2,818,340 is restricted, which is used to pay for the district's IMRF, Social Security and debt obligations. The remaining $12,048,322 is the unrestricted fund balance. The unreserved fund balance as of June 30 of each fiscal year on a fully accrued basis (Education, Tort, Working Cash, Operations and Maintenance and Transportation) shall be maintained at 25% of operating expenses in order to continue to provide the community with uninterrupted programs or services.