BUILDING A BETTER DISTRICT

Community Question

District's Answer

1. Where did the funds to purchase the 300+ acres on Route 47 come from? Was it derived from the current year’s approved budget and revenues? If so, what line items were determined to be unnecessary in the budget and the revenues diverted from them? 

The funds to purchase this land were not listed in a specific line item in the budget and will be paid for out of fund balance reserves. This purchase of land will be partially offset by the sale of other district property, which will reduce the impact in the budget.  No line items were determined unnecessary.

2. Where can I find that $5 million in our revenues to line up with the expenditure since the expenditure is coded to our budget in Fund 20 O&M?  

This expenditure was coded out of Fund 20 and the revenues from the sales of other district property will be put into this same fund.  Per our auditor this could be recorded into either Fund 20 or Fund 60.

3. Is there a reason why this expense was not coded to Fund 60 for Capital Expenditures?

As answered above, per our auditor this could be recorded into either Fund 20 or Fund 60.

4. What district policies or procedures govern making a change in an approved budgeted amount (especially such a dramatic one) over what was presented to the taxpayers for a line item after a budget has been approved and presented to the taxpayers?  

See Policy 4:10 (Fiscal and Business Management). 

5. As the budget was already approved, I’m assuming the Board of Education had to meet and approve this purchase and whatever funds were used for it. Can you tell me the date of the board meeting where this decision was made? 

November 20, 2023 (BABD Note: in this meeting the board approved the purchase of the land on Route 47)

6. I know a resolution was made in November 2023 that would have allowed the district to reimburse itself for “certain capital expenditures” from the $195 million referendum, had it passed. Was it the intention of the district to reimburse itself for the purchase of the Route 47 parcels from those proceeds? If so, now that the referendum stands defeated, how would these funds be replaced?  

The district did not intend to reimburse itself for the purchase of Route 47 from the defeated referendum.  The purchase of this property is coming out of the district’s current fund balances. These funds will not be replaced. 

7. The Mechanics of a School Budget outlines the procedure for amending a budget after approval, requiring a public hearing on the matter and a 30-day notice to the public notifying them about said meeting. I don’t see where such a meeting took place. I would assume a $5 million change would warrant such a meeting. If it wasn’t derived from the approved budget, what is the process by which the district must Notify the public of its intent to secure funds for such a purchase? I’m assuming it is our burden as taxpayers to pay for, so where did the money or debt to secure the money come from? 

The Mechanics of a School Budget is a guidance tool for schools to use, not the law.  The School Code requires the budget to include “an estimate of the expenditures contemplated for such fiscal year.” 105 ILCS 5/17-1 (emphasis added). It does not address when an amendment to the budget is mandatory.  Note that Board Policy 4:10 states: “The amount budgeted as the expenditure in each fund is the maximum amount that may be expended for that category, except when a transfer of funds is authorized by the Board.”  In this case, the District will not be amending the budget, but will determine if a transfer is necessary to offset expenditures.  The purchase of this property is coming out of the district’s current fund balances, and no new debt was taken on to purchase the property.