Dr. Palaniuk’s ReportBOARD NOTES - JULY 21, 2015 ‘STEF PALANIUK-815-467-3127 spalaniuk@min201.0rg ‘STANDARD AND POORS SURVEILLANCE REPORT-Attached is the presentation that was given ina conference cal with Standard and Poors on the 8°, Colleen, ‘Tammie and I made the presentation, of course, had notes on mine to make sure | sald the right things. Also attached is an email sent to Tammie and her response to ‘what the outcome may be. ANNUAL SAFETY MEETING-This meeting was held July 7, 2015. The meeting Included police and fire departments from Channahon, Joliet, Minooka, Shorewooe. and Troy. The plan was reviewed and minor suggestions were made for changes going forward, END OF THE YEAR REVENUE/EXPENDITURE REPORTS- Attached are the yearend reports for 2015. You will notice we rec3elved approximately 102% of revenues and had about 100.8% in expenditures. Our yearend balance forall funds is stil around 25 million dollars. BUILDING USAGE- Attached you will ind a spreadsheet that documents the ‘buildings usage for the year. As you can see the revenues are about $66,000 slightly lower than the previous year. This is due to Minooka Baseball they will be paying in July 2015 which is roughly around $3,500. ‘TRANSPORTATION SUMMARY-Attached is a summary of information provided on the state report for your review. STAFFING-Attached, is our staffing forthe upcoming school year. 1 grade at ‘Walnut Trails has 24 students in each section. 3! grade also at Walnut Trals has 106 in 4 sections (26, 26,27, 27). Kindergarten at Walnut Tralls is (22, 22,22,22,23) we did post one of the two positions you authorized so we could atleast get applications. 15° DAY INSTITUTE- Attached isthe first day agenda for the 15-16 school year ‘which willbe held on August 17, 2015, We welcome your attendance if you are available. Also pictures for id badges will be taken. These pictures are also used for the buard of education website so please make sure to have a picuure taken that day. 412 SHORTENDED DAYS-The attached revised calendar shows 12 shortened days ‘that were agreed with the MEEA. There are (6) five hour days and (6) 3 hour days.Minooka Community Consolidated School District Number 201 Grundy, Will and Kendall Counties, Illinois Standard & Poot’s Surveillance Call veww.min201.org. Dr. Stephen Palaniuk, Interim Superintendent Ms. Colleen Bogart, Business Coordinator Ms, Tammie Beckwith Schallmo, Financial Advisor July 8, 2015| Administration = Al Gegenheimer retired from his position as superintendent last month = Dr. Stephen Palaniuk is serving as interim superintendent until Mr. Gegenheimer’s successor is announced later this month| Debt i. The District does not have any significant capital needs or future debt planned within the next few years 2. The District does not have any variable rate debt outstanding 3. The District does hot have any direct purchase obligations[Debt Upcoming Referendum Plans = Over the last couple years school districts in Grundy County have been considering whether to place a 1% county sales tax referendum on the ballot a There are currently no plans to do so = Ifa sales tax referendum were to pass at some point the District would use the majority of sales tax receipts to abate existing debt service = The District has also discussed the possibility of placing an Education Fund tax rate referendum on the ballot a There are no plans to do so at this time| Debt Existing Debt == = Ss = = = 5 EE 3 = SSS SS Sa : ie Ssoae ae ie See ee igs : BE Se Re : BS BRS 2 Se Se “35 ie EEE IS : ‘one.000 — 2.418,c00 = : 2 sasiaco — Brazaa96s 200% =e Be Bes ie : me ERE ice : ie Ge iSEconomy — Question 4 = There are two residential developments that are under construction a Build out will result in approximately 50 new homes = Completion expected by early 2016 = A new Hampton Inn will be completed in Minooka right off of 1-80 later this year = Grainger is doubling the size of its 1 million square foot warehouse (currently under construction)Economy — Question 4 Equalized Assessed Valuation Tax Year Amount % Change 2010 —-$842,805,535 -5.50% 2011 769,008,079 -8,76% 2012 725,084,600 -5.71% 2013 693,125,434 -4.41% 2014 705,345,722 +1.76% = Tax Base Composition — Tax Year 2014 a 66.39% Residential a 3.57% Commercial a 26.98% Industrial a 3.05% Farm & Railroad| Economy — Question 4 Composition of EAV 2010 2011 $578,511,403 $536,007,207 30,995,713 29,176,592 214,877,490 185,037,401 16,722,089 1,697,880 1,698,840 17,088,999 2012 2013 $494,367,300 $460,698,157 26,928,670 25,661,395 184,379,478 186,172,343 16,485,699 16,788,053 2,923,453 3,805,486 2014 $468,303,354 25,205,383 190,311,989 16,734,684 4,790,312 $842,805,535 $769,008,079 $725,084,600 $693,125,434 $705,345,722[ Economy — Question 4 Largest Taxpayers ‘Taxpayer Equistar Chemicals LP... ‘Aux Sable Liquid Products LP. Morris Cogeneration LLC... Duke Realty Limited Paretnership. ‘Minooka Exchange, LLC / Macy's Retail Holdings, lnc. Grainger W W Inc. Prologis-A5 IL LLC. Catellus Land Development Cor Trader Joes East Inc... North American Stainless LP. Total... 2014 FAV $ 86,702,080 79,928,470 25,114,110 10,833,577 9,746,553 9,552,890 9,522,070 9,136,110 8,063,840 5,270,570 %ofEAV 12.29% 11.33% 3.56% 1.54% 1.38% 1.35% 1.35% 1.30% 1.14% 0.75%| Economy — Question 5 = The District settled a long term agreement with Equistar in August 2013, which yielded about $1.6 million of revenue in FY 14 = Equistar will phase in $30 million of new EAV within the next five years a In 2014 the District entered in to a five-year, 50% abatement agreement 10 If| Economy — Questions 5 & 6 = Aux Sable Liquid Products is planning to double the size of its plant within the next five years a Within the existing TIF, which expires in 2022 a The District is currently receiving 80-90% of property tax revenues expected without the TIF = Its EAV is expected to increase between $50 million and $60 million a The District will receive 50% of new property tax revenue for five years 1 12Economy — Question 6 = The District recently settled prior property tax appeals with Morris Cogeneration LLC (Morris CoGen) = An agreement settles appeals for tax years 2010 through 2013 and establishes Morris CoGen’s EAV for tax years 2014 through 2018 Tax Year 2010 $ 2011 2012 2013 2014 2015 2016 2017 2018 EAV 11,667,000 10,000,000 10,000,000 9,000,000 12,000,000 12,000,000 12,000,000 12,000,000 14,000,000| Economy — Question 6 = The agreement also stipulates that the District does not have to refund any property taxes to Morris CoGen for tax years 2010 through 2013 = The tax year 2014 tax bill will be corrected to reflect an EAV of $12 million (versus the $25.1 million currently on file with the County Clerk) = The District plans to adopt a bond & interest deficiency levy for tax year 2015 so that it can capture the loss of property tax revenue for tax year 2014 (approximately $100,000) = If Morris CoGen completes site improvements or adds facilities over the next five years, the new EAV will be phased in over that time period (by 20% per year) 13 ly| Economy — Question 4 Largest Employers Approximate employees at Company Name Product or Service Location ___location Exxon Mobil Corp. ‘Gasoline, heating oil & propane gas. : Channahon 600 Flint Hills Resources L. P. sx Chemical intermediates... Channahon 250 101 Loders Croklaan... Food ineediens ncing fats, oil, shortenings, coatings & emulsifiers... Chanabon 250 Railworks Track Service, Inc Railroad design, constuction & maintenance. smominae Minooka 230 (Crane Composites, Ine... Corporate headquarters & fiberglass reinforced panes. Chamahon 214 [Brake Custom Cabinetry, Ine. ‘Wooden & plastic covered kitchen cabinets & countertops. Shorewood 200 U.S, Cold Storage. sone Cold storage services. Minooka 200 Styrolution America, LLC. HO of eos Group LiL/BASE Corp, & erystal & impact ror Channahon 125 [DNS Intermodal Services. Local & long-distance trucking services. Clunnaton 120 Brieser Construction Co, General industrial construction, including structural steel erection, Chanmaton 115 Source: 2015 Manufacturer's News, Inc. Illinois Manufacturers and Uinois Services Directories, 14 IS| Economy — Question 7 Change in EAV and Taxes Extended ‘Total Tax Rate 8 2954 2940 $ 3.002 $ 3.17 $ 3.143 Equalized Assessed Valuation $ 842,805,535 $ 769,008,079 $ 725,084,600 S 693,125,434 $ 705,345,722 9% Increase in EAV 0% 8.16% “5.11% “4.41% 1.76% ‘Total Taxes Extended $24,805,604 $22,576,902 $21,813,812 $21,435,033 $22,041,918 1% Increase in Taxes Extended 5.83% 8.98% 3.38% “1.78% 2.83% 15 IeEconomy — Question 7 ‘Tax Rate History Fund Educational .. Building IMRF Transportation . Working Cash... Special Education Insurance .... Bond and Interest Fire Prevention Social Security Technology Lease Total ..... 2010 $ 1.620 0.250 0.041 0.120 0.050 0.020 0.066 0.696 0.050 0.041 0.000 $2,954 2011 $ 1.620 0.250 0.048 0.120 0.050 0.020 0.251 0.532 0.000 0.048 0.000 = The District is not tax-capped 16 2012 $ 1.620 0.250 0.090 0.120 0.050 0.020 0.000 0.663 0.050 0.090 2013 $ 1.620 0.250 0.065 0.120 0.050 0.020 0.094 0.733, 0.050 0.065 0.050 2014 $ 1.620 0.250 0.085 0.120 0.050 0.020 0.092 0.765 0.005 0.085 0.050 Maximum Rate $1,620 0.250 N/A 0.120 0.050 0.020 NA NIA 0.050 NA 0.050Economy — Questions 8 & 9 District Enrollment School Year Enrollment School Year Enrollment 2010/11 3,966 2015/16 4,589 2011/12 3,998 2016/17 4,753 2012/13 4,077 2017/18 4,889 2013/14 4,203 2018/19 4,976 2014/15 4354 2019/20 5,140 2020/21 5,276 (1) Projected = The District’s enrollment has been growing by over 100 students each year = Continued enrollment growth is projected 7 18Finances — Question 10 Working Cash Fund History (Years Ended June 30) 2010 2011 2012 2013 2014 Receipts... $609,368 $ 506,595 $ 456,894 $ 415,474 $ 382,414 Disbursements. id e z il - Net Surplus (Deficit). 609,368 506,595 456,894 415,474 382.414 Other Sources (Uses).. (429,538) (107,042) (52,480) (28,395) (24,180) Beginning Fund Balance. Ending Fund Balance.. 10,276,571 _ 10,456,401 _ 10,855,954 _ 11,260,368 _ 11,647,447 $10,456,401 $10,855,954 $11,260,368 $11,647,447 $12,005,681 8 9Finances — Question 11 Cost Containment Efforts = The District has implemented the following budget cuts (primarily impacted the Education Fund): a a a a a Fiscal Year 2010: $1,600,000 Fiscal Year 2011: $800,000 Fiscal Year 2012: $400,000 Fiscal Year 2013: $400,000 Fiscal Year 2014: $200,000 = Mostly due to decentralization from the Grundy County Special Education Cooperative and cuts in Transportation and the lunch program Fiscal Year 2015: $50,000 19 20Finances — Question 12 General Fund Balance History (Years Ended June 30) 2010 2011 2012 2013 2014 . $ 25,788,119 $ 25,421,385 $ 24,969,742 $ 27,373,081 $ 29,835,037 30,847,269 __27,790,720 __ 27,737,745 __28,380,375 __30,715,262 (5,059,150) (2,369,335) (2,768,003) (1,007,294) (880,225) Disbursements. Net Surplus (Deficit) Other Sources (US€5)..m- - - 6,052,480 (1,971,605) 24,180 Beginning Fund Balance.. __ 16,630,045 __11,903,161 9,640,868 _ 12,925,345 ___ 9,946,446 Ending Fund Balanci $ 11,903,161 $9,640,868 $ 12,925,345 $9,946,446 $_9. Fund Balance as a % of Expenditures. 38.59% 34.69% 46.60% 35.05% 29.60% 20 2)Finances — Question 12 = Given the nearly 25% EAV decline through tax year 2013, our property tax revenue decreased at a similar rate a Primary driver of our annual deficits = Our General State Aid finally started increasing two years ago, due to the EAV decline and increasing enrollment a Increased from $2.5 million to $4.1 million in FY14 = Even though we have made significant budget cuts in recent years, we will continue to experience deficits a The deficits will be mitigated as property values continue to increase a 22Finances — Question 13 FY15 Budget Summary FY1S Fund Balances FYIS FYIS Other Source/ Fund Balances July1,2014 Revenue Expenditures (Uses) Sune 30, 2015 Education... $ 4,725,640 $ 24,120,104 $ 25,284,893 $ 25,000 $ 3,585,851 Operations & Maintenance.. 4,364,761 2,020,800 2,704,650 = 3,680,911 ‘Transportation... 1,593,438 2,353,800 2,906,100 ~ 1,041,138 IMRF/Social Security.. 268,336 1,304,500 1,060,951 - 511,885 Working Cash. 12,005,681 418,500 : (25,000) _ 12,399,181 ‘Total Operating Funds $22,957,856 $_30,217,704 $31,956,594 $ = $21,218,966 Debt Service. $ 1,687,277 $ 6,001,100 $ 5,835,000 $ 100,000 $ 1,953,377 Fire Prevention & Safety. 1,012,122 395,300 170,000 = 1,237,422 Capital Projects. 1,967,935 321,100 415,000 - 1,874,035 Tort. : 700,800 41,255,000 = __ (534,200) ‘Total All Funds ... $27,625,190 $37,636,004 $39,631,594 $ 100,000 $25,729,600 22 23| Finances — Question 14 FY 16 Budget Preparation We are in the carly stages of FY16 budget preparation No cuts will be made We are implementing full-day kindergarten this year, which will require us to add 9.0 FTE We will also add 3.0 FTE for special ed staffing At this point we expect a deficit similar to the FY15 budgeted deficit 23 2y| Finances — Question 15 Contractual Obligations = The District will begin a new three-year contract with the teachers on 9/1/15 a Average annual increase of 4% = A second labor group (MESP) represents custodians, teachers’ aides, secretaries and lunchroom staff a Those contract negotiations are on hold until the new superintendent begins in August a We anticipate a new contract similar in scope to the teachers contractFinances — Questions 16d and e Pension and Retirement Plan Contributions = For the fiscal year ended June 30 , 2014, the District's annual IMRF pension cost of $430,652 for the regular plan was equal to the District's required and actual contributions. = We expect these contributions to average 8.71% of salary costs = There have not been any recent changes to benefits given to employees 25 26| Management Revenue/Expenditure Assumptions for Annual Budgeting 1. We use two years of history when preparing our annual budget and three to five years when forecasting trends 2, Outside sources include IASBO, IASA, IASB, the township and county assessors and PMA 3. We use a hybrid budgeting method, focusing on the needs of the District from year to year| Management Budget Amendments & Updates 1. We provide the Board with budget-to-actual reports on a quarterly basis. 2, A budget can be amended in approximately 45 days. 3. We very rarely amend the budget. 27 2y| Management Long-Term Financial Planning 1. The District has historically prepared long-range financial projections 2. They have traditionally gone out for three to five years 3. They are updated and shared with the Board at least annually 28 af| Management Long-Term Capital Planning = The District has historically updated its 5-Year Capital Improvement Plan annually = The District’s last 10-Year Life Safety Survey was prepared in 2007; all items on that list were addressed with 2008 referendum bond proceeds a The next 10-Year Survey will be completed a We do not anticipate any major items = There are minor repairs here and there that are absorbed in our annual operating budget 29 30| Management Investment Management Policies 1. The Board has an investment policy, which is in accordance with statutory requirements 2. The Board receives monthly investment information in the Treasurer’s reports 3i| Management Debt Management Policies 1. The Board has a debt management policy 31 SeManagement Reserve and Liquidity Policies 1. The District has the following goals: 1. Maintain a Working Cash Fund balance that is 1/4 of Operating Fund expenditures 2. Maintain operating fund“ balances that are at least 25% of expenditures © Operating Funds include Ed., O&M, Transportation, IMRF/SS and Working Cash. 32 33Investment Grade ‘Non-Investment Grade ‘credit Rating Seales and Defitions R rr eseseggr>reREEp Extremely trong capacity to meet financial obligations. ‘Very strong capacity to meet obligations. Strong financlal capacity but susceptible to adversity. ‘Adequate financial capacity bt adverse conditions wil lead to weakness. ‘Non-nvestment Grade Specuative Hiely Speculative Extremely Speculative Default fmPMA 3YMinooka 201 Mail - Greatly Appreciative! Page 1 of 3 GO Sere oer Greatly Appreciative! S messages ‘Stophen Palaniuk Wed, Jul8, 2018 at 10:0 AM ‘Tor Tamme Beckwith Sehalme Tammie @pmanetwork com> Ge: Calleen Bogart Bec: Stephen Palanuk “Thank you go much for ALL the deal you punto the presentation. can see now why Althought so highly ‘fyou and the services you provide fr us a8 wel as ors, You made the entre process go so smooth! Coleen wil be sending you some information which incudes projections fancialy frst east hoe to five years out ‘What does your minaigu say as toa possible outcome? “Thank you again for your tremendous assistance! ‘Tammie Beckwith Schallmo Wed, Jul8, 2018 at 1:65 AM ‘To Stephen Palanik Ce Callen Bogert 493140 2008 Adrbuafpxain493141 2008 adrbvafpsebs93142 2006 1fdweaSpachassnaa 2012 adrbuskp30b366752 2011 Adrouskp500366753. 2011 Adrbustp7b366754 2013 2013 daebuskp2ab294834 2012 agb3q2b10e1138023 2003 tgmdu230834275570 2010 ifmnetbw6ade07118 collins in int. int, ine. int. Intbiuebirs inbluebird. tntbluebied Ingbluebled int biuebia Int bluebicd Inblvebied Incbluebied Ingbluebire bluebird int int int. in int int int. int int int collins int int, int Ing collins pontiac = wtva. va via misi023 mi80981 mi61070 2010 afmnetbwaada07119 2010 1fmnetbw4adag7120 2010 tfmnetbweada07321 ford ford ford‘Minooka Elementary Walnut Trai [Minooka Primary Centar Kindergarten Kindergarten “Lite indians” -ECIDK “bears [Wedd [02] lane [tswen ic [2lstrac [ata [| 2Tosagst Loa resi Slorgesan Toone [ee —Sferer a “itrton Note] ale inca | San| Alcor [ame lunsey |e ‘mem 3 [ele “fin earn | W2by) 6 i Pate — gay | at grade | Palictendy aie leet — foes fst alts Me Ble rege 2 talons lea Slwoine: —lKeqn —EsslS}otwey [en alo t licessor [ncn | Sse] €lMeDonad Ose al t Blosdoe frente —| 10 | 1 aleve Taner| i i “PA Wega Surat and Grade — nd Grade SLP[Reedoot etre ‘vast [sin oh Si ieey ry | leas ears [stad fae surlcisey km | ‘loner [Fan a suPlvensan— Dear ‘beers ae [anos [a Prison Kan ‘Blssear [i jase fee ‘awiouty | Wi ci ard Grade aa 3rd Grade [AReemtowes [ore Ta] eae een fo] 9 acon — | Zhou oats [rg B02] Sener [Saah Lg Slowsus amanda (2s) —lhrey [erate Eel —Slsmun [Per ‘lsc ——[Etapon [S| —4lKor nse] Once [Oe [Se Shears att [ar ela fenan| 28 5 sy ern wa[Minooka School District 201 Staffing 2016-2016 ENROLLMENTS 797016 oe F206 Tal [sey s[ ST i t Minooka Elementary Walnut Trae | aux Sabie 1 “Jones | | ]Minaoka Primary Cantor —] TfRiinen [emma | —[Walimen ——[aniea | —[ WAlReimen [ais [| Rien li lsc [orp rlsser [on ‘also ils eros | ie ave [sont | relat — ewe lsu || Resort L 1 Pelion [am Se a sete — free [| rete (Custodians [ciara int | Teche no TE Pes [ce oT byt fae u bom Perm Iie — 5 fone — [a bai Ferano ay ios | — ijsesey [Ee Talveny fase [a [S38 STAR Foam i +f eeu ary |} Suppor Ene ren | —} Sasa fans aa bea hon wick ia i ero lec 78 7 Bed aalcotm uses 7s) ce Hyer | has ing Iam re aca Talis — [ot Takia [reg | [ral iba Paley Scr “alte — eis | —[ aloes fr Talore re Pale asin “alchon [Does | TES Tape [on Tov | —| tanec [arr | TATA[Pet My as |—[~| StPlonnbis estes ‘alors [Sey | | tAorena [Rete [=o vm | frech[@aciey —|wiian —|-—Teshlavacoe [Vana —|-—[Teen|iutinan —[’narew |_| Toei Roeay [tian |" [1 t esa a et lbaged [wn TL tse aoe tloeqtd bens —| I f= snag itt emo kere ca tensa — or 3 Bilson alone | | ‘Sahn pson_[Any talrere [so Stine, leon Silene omen i rr i = i i t 4 (Castoaiane ‘Casto {custodians ——|~| —|Gustodians ] lan ain Defend Peat ory JTF 7 7 isr [ere [sent fe Sap ——Deyee [1 T Efe ess —— lea [Rosin oso sen own ——-t t + ‘cafetoria [Cafetea | a lms [Tt oath Merge | — Goel rtowt—owton in i oa esl = | = Ct t t[Minooka Schoo! District 201 Staffing 20162016 ENROLLMENTS [7320s SSW ae [FY2016 1 TT 1 T ttnaat emai) — waa Tae area —| sesss sk a t tt -— t — tee ie —+— 1-4 [ee oe Hee eo 4 = Soar ae ee — fase | fore fe || ten fe — (olatee= jm | > a epee ae =I aos en ee ee ES a ra ee pe oo ras fi —|— [aces — fo he 7 : Se ae eae comme ts — f im Sa a a one oe te eho ae = ee ee t 7a oo aa * ra z t 4 3 =P ae = "Ae ico | | emg — See ee ee lunar tet eae are t soul ers —— [ner [scelangsio [anew i Plc [an = nica tes fem fe : SS Tapert ees fs a2 ee eee eae res a TPA Hatton [Hearne re fee : ae f f ae ett == = | T ee _ PriGuth Ma | Aldea [Pam Pile sve. ‘uig|benks —[tomie al eee es | Se ee Z +Sa oe = ee — = === =e — == —— a 2 =< VeMinooka Community Consolidated School District #201 August 17, 2015 Minooka Intermediate 30-8:30 Breakfast-Provided by MEEA 7:00-8:30 8:30-8:35 Wel im tren oo ape 8:35-9:00 Superintendent Remarks 9:00-9:15 Break 9:15-10:00 MEEA Meeting-Intermediate Gym 9:15-10:00 ESP Meeting-Intermediate Library 11:00-12:00 _Lunch-On Your Own 1:00-3 In buildings working in rooms Building meetings Weledtié Back S|MINOOKA COMMUNITY CONSOLIDATED SCHOOL DISTRICT #201 Thus, Thu Fa ig 13 nw no. 4g. 18 ESET EE BRS BA A 2015-2016 SCHOOL CALENDAR, Revised July 9, 2015 Pus asorn Snore 8 emery Senos Now Tasch Orientation Day No Conlernene | Now Teacher Orientatie Day ‘urs. ov. 5 ei High 0 8 Teacher inate Day-No Sudan. Atandance | evens Sroos 200 Px 800k Teacher institute Day -No Suet Atgnce | memes Szos No Conernces First Shien’ Aendance Oey - Grades K- Firs Sunt Atondance Day -ECIOKPre Labor Day Holiday - No Sint Ainéance Ear lease (Shur Stel ngrovenent Progress Ropots Sent Hare ary Reae (5 hour Scien ngroveent (Columbus Day No Shirt Adana En of Fist Qatar (day) Ely Dismissal (nour “Teacher Institute Day -No Sor Atentance Early Dismissal (hour Parr Teaher Conferences 200-820 PA Eat Dismissal (3 hou SPPParet Teacher Caierenes?2008.00 Pt Part Teacher Conferences - No Suen! Atennee an, ov. cobras ‘SielRasunes Eat Release (Shout Scio improvement PARC Testing £O¥ Progress Repos Sent Home Last Day of ECDK Pre at Set Atontares Da fa nere emergency days sed (Shou) Ene of Feith Quart (5 5), Grade Graduation Tescerlsive Memorial Day-No Sunt Arcane 5+7ps0p2015 16- Final 2015. ‘Minooka Community Consolidated Schoo! District70/2015 Minooka Community Consolidated School District 2015-16 - Final sy