Frankfort D157-C approves 2013-2014 Budget

By Nancy Neuzil, Frankfort School Dist. 157-C public relations coordinator

The Frankfort School District 157-C Board of Education approved the 2013-2014 fiscal year budget. The budget shows slow incremental growth when compared to the 2012-2013 budget, reflecting relatively flat revenues and implementing cost-cutting measures to help ensure that the district remains financially solvent during these current challenging economic times.

Despite the stagnant economy, delays and cuts in State funding, along with a lower Equalized Assessed Valuation, District 157-C was proud to be placed in the “Financial Recognition” category by the Illinois State Board of Education and also received an AAA bond rating again this past year.

The total Operating Funds budgeted revenues of $29.1 million versus total Operating Funds budgeted expenditures of $28.4 million will result in a positive expected variance of approximately $700,000 for the year (equal to 2.4% of revenues). This minor positive variance in the Operating Funds will not require a deficit reduction plan and shows that the district is continuing to live within its means and maintain adequate, but not excessive, fund balance reserves.

Total estimated fund balance reserves, including early tax collections, is expected to be about $30.5 million for the Operating Funds, up from last year’s projected balance of $24.1 million. When factoring in projected debt defeasance obligations anticipated in 2014, the expected final fund balance reserves will probably be in the $26 million to $28 million range. After the Sept. 16 public hearing and budget presentation by Curt Saindon, assistant superintendent for finance and operations, the Board took action to approve the final budget and all related resolutions and certifications.

The Board of Education and administrators are continuing to undertake pro-active cost-cutting measures throughout the district, wherever possible. These include operating over the summer on a four-day work week, going out to bid for gas and electric usage, working with Constellation New Energy during designated days to lower electrical consumption and earn savings, staffing reductions through the elimination of positions at the retirement of long-term staff members or as other staff members resign, a thorough examination of the employee insurance program to save on premium increases where possible, consolidating computer usage and extending capital rotation cycles, trimming discretionary spending for consumables, materials and supplies, and looking for every opportunity possible to reduce spending without negatively impacting instruction or the educational environment. 

In addition, this past year the Board approved a refinancing bond issue for existing debt that included limiting the increase in the total overall levy to the amount of tax revenues received from new construction only and refunding or abating debt service amounts that would cause the levy to exceed this limit.

Further debt refinancing is being considered this fall and winter to continue this practice of holding the levy steady for the next few years with only minimal growth allowed for new construction as it comes on line. The district’s continuing goal is to work towards balancing the budget without negatively impacting instruction or the school environment.

For more  information about Frankfort School District 157k-C, visit the website.