Revenue ahead of expenses

A $47 million spending plan was adopted by the Unit 1 Board of Education this month, a 24.29% increase in expenditures over the prior year’s budget.

Over 75% of the district’s expenditures are for educational expenses and capital projects—$26.6 million and $8.76 million, respectively.

Revenues are budgeted at $53.3 million, an increase of 53.17% over the prior fiscal year, and $7.3 million over planned expenses.

Revenues come from various sources, the largest is property taxes and by agreement, the district will collect $17.3 million from Constellation Energy—Dresden Nuclear Generating Station.

“We anticipate that state revenues will remain fairly consistent, as will our federal revenues. Just in perspective those are always small fractions of our total income, and then we expect the bond and interest earnings will continue to be higher than the previous five fiscal years because of where rates are,” said Jason Smith, the district’s chief school business official.

Budgeted revenues also take into account the Board of Education’s intent to issue working cash bonds of just under $15 million.

The bond proceeds would be used to complete capital improvements outlined within the district’s facility improvement plan.

Priority projects include restroom renovations, new furniture, a building addition and classroom renovations at the early childhood center and improvements to outdoor athletic facilities.

Although the budget outlines a portion of these projects to be completed this fiscal year, Smith noted some may not happen.

“So I don’t expect that to be the actual expense at the end of the day. But because this is an estimated budget, the board isn’t in a spot where they have to amend a budget. We are going to go ahead and plan for those projects and if the Board chooses not to go forward with them they don’t happen. The same with the bonding issue,” Smith said.

One project that is slated for this fiscal year is the construction of a storage facility at the middle school that incorporates restrooms and concessions to serve the outdoor athletic fields.

In the past two fiscal years, the district has received a significant increase in corporate personal property replacement tax [CPPRT], revenues collected and paid to local units of government to compensate for lost personal property taxes on corporations and other businesses.

In fiscal year 2021, the CPPRT payment was $1.6 million. The following year the district received $4.2 million and last year it was $4.7 million. So with a surplus of about $4.4 million, the Board has directed a portion of those dollars be used to cover the construction cost for storage building at the middle school.

As for expenditures, Smith noted the education budget increased by 9.14%.

Reflected within that is salary and benefit increases that came with the recently approved teacher contract and new hires throughout the district including faculty, social workers and administrative staff.

The budget, by fund, shows expenditures in the education fund of $26.6 million with revenues at $26.39 million.

Operations and maintenance costs are budgeted at $3.66 million with supporting revenues of $4.4 million

The debt service fund is estimated to take in $3.5 million with expenses of $3.4 million.

Budgeted expenses in the transportation fund at $3.2 million with revenues of $2.6 million.

The district has budgeted $896,200 for Social Security/Illinois Municipal Retirement Fund with revenues of $1.14 million.

Revenues of $450,000 in the tort fund will offset $236,000 in planned expenditures.

The district anticipated $36,426 coming into the heatlh/life safety fund with projected expenses at $75,000.

As previously noted the capital projects fund is anticipated to expend $8.76 million and the working cash fund is budgeted to take in $15.3 million.

The balance at the close of the fiscal year is estimated at $33.4 million.